Reasons to be cheerful (part 2)
10 Jun 09
A small flurry of good news stories has brought some optimism back to Scotland’s beleaguered financial community. But we’re a long way from seeing the end of this difficult period.
First, the Sunday papers reported that Richard Branson’s Virgin Bank will set up part of its operation in Edinburgh, creating 100 or more jobs in Scotland. The announcement will no doubt give some hope to some of the bank staff who have lost, or fear losing, their jobs.
Also, today The Herald reported on two private equity deals. A buy-out from Aberdeen Asset Management has created Maven Capital Partners UK, a Glasgow-based private equity house looking to invest in entrepreneurial companies valued at up to £25m. Led by Bill Nixon, up until now AAM’s head of investment, it also includes several of Nixon’s colleagues at AAM including with leading CA Jock Gardiner.
Meanwhile, at oil and gas analysts Wood Mackenzie, staff owning shares in the company are reportedly set for a windfall of up to £1m each if a deal with Charterhouse Capital Partners to buy out the company from current external shareholder Candover – even though the likely price is around £100m less than the £650m Candover was reportedly looking for.
As businesses start to take stock of the new economic conditions and some prepare to make their move, with a programme of acquisition and consolidation, it certainly looks as if the absolute gloom of a few weeks or months ago has lifted a little.
None the less, this isn’t to say we should be celebrating the arrival of “green shoots” already. Even if the economy is close to bottoming out and the recovery is not as far away as many may have feared, the recovery itself will be a very dangerous time for many businesses. In fact, many on the “critical list” just now may not be around to see any of the recovery, when it eventually comes.