Scottish private equity-backed firms see 34% average profit growth
“As a business community, we have the local expertise, access to funding and entrepreneurial ambition required to drive significant economic growth” – Craig Martin, BDO
Scottish private equity-backed businesses achieved average annual earnings growth of 34 per cent over the latest three-year-period, a new report has revealed.
The latest Private Equity Value Report from Real Deals, developed in association with accountancy and business advisory firm BDO, highlighted 12 qualifying businesses in Scotland - ten of which have ranked in the top 245 private equity-backed companies across the UK.
Nationally, UK-wide, qualifying private equity-backed portfolio companies achieved an average underlying earnings growth of 50.8 per cent while average revenues grew by 21.7 per cent over the same period.
The top ten in Scotland showcased a range of sectors from technology to consumer markets and business services, and the most featured investor was BGF - formerly the Business Growth Fund.
BDO commissioned the research to understand the impact that private equity investment is having on the growth of the UK economy. The data was drawn from the most recent three years of accounts filed with Companies House.
BDO deal advisory partner, Craig Martin, said: “Scotland is home to some impressive private equity-backed businesses that are making a real impact. These companies are not only driving growth but have also shown remarkable resilience during challenging times. Their ability to adapt and thrive through periods of uncertainty highlights their strength and potential in the market.
“For businesses in Scotland, management teams often look towards minority investors as a route to scalable, durable value creation. Our data shows that 60 per cent of deals in the region were minority investments, far higher than the UK average.
“This shows businesses are primarily seeking growth capital to scale up and deliver against growth plans, which often includes entering new markets or international expansion, while maintaining operational control.”
“This means a partnership approach to value creation is key,” he added. “This partnership ethos extends to Scotland’s wider deal-making community. As a business community, we have the local expertise, access to funding and entrepreneurial ambition required to drive significant economic growth.”
BGF-backed Strathberry - the Edinburgh-headquartered premium accessories brand - topped the list of the top ten firms in Scotland.
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