KPMG report

Private equity deals hold up despite tough climate

Private equity investment in Scotland’s mid-market fell only slightly in 2023 from the previous year’s record tally, according to KPMG.

The big four accountancy firm’s most recent M&A study reveals that 42 transactions took place last year with an overall value of £3.3 billion, compared with 51 in 2022, worth a five-year high of £3.5bn.

Across the UK as a whole, the number of mid-market transactions fell 10% to 675 from 735, while the UK private equity market overall witnessed a more significant decline, with the total volume of deals down by 20% to 1,451 from 1,802 .

Graeme Williams, head of corporate finance M&A for Scotland, said: “It was always going to be tough to match the record breaking numbers of 2022 but, despite a slight dip, the figures in 2023 are cause for optimism in Scotland.

“2024 will be a year of upheaval and change, with a General Election in the UK as well as major elections in the US and elsewhere on the horizon, and therefore the future is difficult to predict.

“This might mean a tough road ahead for the country and businesses in general, but I believe there are more than green shoots for firms of all shapes and sizes, with many facing an exciting future.

“It can only be hoped that we can overcome this period of instability and return to a more stable deals market during the coming 12 months.”

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