Mergers and acquisitions (M&A) activity in the oil and gas sector is likely to remain subdued until the end of next year at the earliest, a corporate financier has said.
But Graham Cunning of accountancy firm Campbell Dallas, which has advised on 15 deals worth a total of more than £100million this year, said there are still plenty of takeover opportunities for the industry’s market leaders.
Mr Cunning said: “Oil and gas is the one sector that remains very subdued and there is unlikely to be a recovery in deal flow until the final quarter at the earliest. That said, despite the oil price crash, there is still an active M&A market in the oil and gas sector for quality businesses.
“Despite the downturn there are still plenty of well-resourced oil & gas corporates that are focussing on executing their acquisition strategies, so business owners wanting to sell may wish to take advantage of that opportunity.”
Mr Cunning also said 2016 could be the ideal year for backers to exit from a business.
He said a combination of low interest rates, entrepreneurs’ relief of 10% on sales worth up to £10million, the presence of larger corporations with money to burn on acquisitions have created a positive environment for exits.
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