M&A Expert: Scotland business values to drop on Yes vote

M&A activity in Scotland will be severely dampened, leading to businesses selling for lower values if the country declares independence, according to a leading M&A expert.

Kevin Uphill, Managing director of Avondale, says that Scotland will be regarded as an ‘uncertain landscape’, and buyers are likely to become very wary about investing in companies.

“If Scotland does choose to be independent I believe we will begin to see the long term effects of this becoming apparent within the next four to five years. As an independent country, Scotland will seem less appealing in the global marketplace. This will be financially damaging to Scottish businesses looking to sell as it forces competition down. As well as this, those looking to buy companies will begin to look at other European markets with a stronger currency.”

“The UK is currently in state of growth following its largest deficit in 70 years. Whilst this rapid recovery has a clear and obvious impact on increased M&A activity, a Yes vote in the Scottish Referendum could have a drastic effect on both the amount of activity taking place and the value of the businesses being sold.”

According to Uphill, Scotland remaining part of the UK would be the best outcome as it means that its M&A activity would continue to grow as part of the Union’s recovering economy, and that business sale values would be stronger.

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