As coronavirus continues to spread, more businesses are looking for a viable exit strategy as the virus looms over them. United Capital is the investment company that are specialists in consolidating the UK construction sector and have now announced an acquisition pipeline over £350 Million in terms of revenue.
This has come about due to many construction industries feeling the full brunt of COVID-19. With staff needing to down tools but rent and other outgoings still requiring payment, of course it’s not an ideal recipe for any business. That goes double for construction, when the vast majority of work is done on site instead of in offices that can be handled remotely.
Reports have been bad, suggesting a downturn of up to 40% across the sector, as almost all projects are put on hold. As such, consolidation is likely to become a frequent sight. Even though measures have been put in place by the government, for many it’s akin to sticking a plaster on a gunshot wound, as many companies are having troubles getting the loans they need, and stating they are unlikely to survive the fallout from this.
United Capital completed the acquisition of McGill last year, formerly one of the top 500 companies in Scotland, after it went into administration, along with Alliance Electrical, a electric services company based in Angus. And the head honchos at United Capital have bigger plans ahead of them, setting out their vision to acquire UK-based building services and facilities management companies with a turnover in excess of £100 million.
United Capital’s CEO, Graeme Carling, had the following to say on the subject:
“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.”
Of course none of this is a good situation for companies, far from it. But when they are short on options, United Capital may be the lifeline when few options are left. As Graeme says:
“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”.
In uncertain times, United Capital may be a company’s only way out.