Venture capital (VC) backing for some of Scotland’s most exciting firms – from a games developer to a private bank – almost trebled in the first quarter of the year, according to new figures.
Wave of dealmaking sees private equity investment in UK soar to highest level in five years cityam.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from cityam.com Daily Mail and Mail on Sunday newspapers.
Private equity predators are expected to snap up swathes of British companies this year after deal volumes hit their lowest level in seven years in 2020.
Private equity firms, infamous for making drastic cuts at the companies they buy and loading them with debt before selling them on for more money, completed 889 UK transactions last year worth £87.2billion, according to accountancy firm KPMG - a fall of 26 per cent on 2019.
Dark days: Private equity firms are infamous for making drastic cuts at the companies they buy and loading them with debt before selling them on for more money
But Jonathan Boyers, of KPMG, said: Once the initial shock of lockdown had worn off, and after a number of years of hesitancy caused by Brexit, general elections and broader international uncertainty, we saw a renewed urgency amongst private equity investors to get deals done.
Surge in bumper deals helps UK M&A regain its mojo
(Getty Images)
After a slow start to the year UK M&A has bounced back after a surge in mega deals saw activity soar 80 per cent.
M&A with UK involvement has totalled £429.8bn so far this year, 80 per cent more than the value recorded in 2019 according to research by data provider Refinitiv.
A staggering 21 mega deals have been announced so far this year, more than double the number last year.
It is particularly impressive given activity came to a near standstill after the first lockdown, with activity resuming only once lockdown restrictions eased over the summer.