United Capital, an investment company involved in the restructuring of the fragmented UK construction industry, has reported that its purchase budget has reached £350 million, in revenue figures, as more business owners are seeking an alternative plan in reaction to the global epidemic of Coronavirus.
The UK construction industry, like many others, has been seriously impacted by COVID-19, with all but important construction programs put on hold and sites closed. With forecasts predicting a decline of up to 40% in the market, restructuring is likely to become more frequent. Given the steps set in place by the State, several companies report issues with access to capital, with some indicating that they will not be able to withstand the crisis.
Last year, United Capital finalized the purchase of McGill, a former Scotland Top 500 firm, after joining the administration in February 2019, and Alliance Electrical, an Angus-based electrical services corporation. United Capital Managers revealed optimistic ambitions to buy UK-based construction services and facility maintenance firms with a combined turnover of £100 million in 2020 and, despite such extraordinary business circumstances, their deal pipeline continues to expand.
United Capital CEO Graeme Carling said: “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 is seeking well-managed building contractors and facilities maintenance firms based in the UK with a revenue of £10 million-£40 million. The corporation notes that, while the business sector is undoubtedly worried, others prefer to stay active and plan for the long term.
“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.”, Graeme Carling commented.
Graeme Carling, Scottish entrepreneur and UK-based building management company, United Capital CEO, shares his thoughts on the role of experienced advisors.
About United Capital
United Capital is an investment group that consolidates the competitive UK building services and facilities management market by purchasing well-performing, growing, industry-based businesses with a good management team with consistent development strategy.
United Capital, through a well-established network of consultants, dealers and strong marketing, locate and target businesses working in our target industry. The stringent standards look for businesses that regularly generate an annual revenue of £10 million-£40 million, produce high income rates and currently offer large-scale public-sector contracts for Government, NHS, MoD, Local Council Authorities and Housing Associations.