The UK construction sector, like many others, has been badly affected by COVID-19, with all but essential building projects put on hold and sites closed. With reports suggest a downturn of up to 40% across the sector, consolidation is expected to become more common. Despite the measures put in place by the Government, many companies are reporting issues accessing loans, with some suggesting they may not be able to survive the crisis.
Last year United Capital completed the acquisition of McGill, a former Scotland Top 500 company after it entered administration in February 2019, and Alliance Electrical, an Angus-based electrical services company. United Capital bosses announced ambitious plans to acquire UK-based building services and facilities management companies with a collective turnover of £100million in 2020, and during these unprecedented trading conditions, their deal pipeline continues to grow.
United Capital CEO Graeme Carling commented; “When we announced our targets in December 2019, we never could have envisaged the current situation. We have adapted quickly and are seeing opportunities where they didn’t exist before. Companies that were not considering an exit when we spoke to them earlier in the year are now chasing us, the market has shifted. We are actively engaged with several businesses at advanced legal stages and progress is being made every day. The current “lock-down” is slowing progress down, but deals are still being done. Our experienced team remain active and new opportunities are presenting themselves daily.”
United Capital target well-managed building services and facilities management companies operating in the UK with a turnover of £10million – £40million. The company report that although the business community is obviously worried, many are choosing to remain active and prepare for the future.
Graeme Carling continues; “Most businesses simply do not have the resources to sit back and weather the storm, they need to find solutions, and quickly. The majority of business owners we speak to who are considering selling to us, are either nearing, or of retirement age. These are people who have put everything into their businesses over many years and due to the impact of Coronavirus, are short on options. United Capital can provide an option for business owners looking for an exit and we invite them to get in touch directly. The reality of this situation is that every single company in the country has been affected and many will not be able to survive”