Business News Round Up (12/07/2024)
Scottish businesses secure nearly one-fifth of UK spinout deals
Scotland accounted for almost one-fifth of all UK equity deals involving university spinouts in 2023, according to new figures from the British Business Bank. Published today, the Bank’s annual Small Business Equity Tracker also places two of Scotland’s leading universities among the UK’s top five for spinout deal activity. A total of 12 deals in 2023 involved businesses with roots at the University of Strathclyde, while another dozen were associated with the University of Edinburgh. Only Cambridge, Oxford and the University of Bristol accounted for a higher number of deals. Overall, 24% of deals in Scotland were classified as spinout deals in 2023 – the second-highest proportion in all UK regions and other Devolved Nations. In Scotland as a whole, there were 169 equity deals in 2023, with a 21% year-on-year decline bringing activity back in line with 2019’s pre-pandemic levels.
North West buyout industry bounces back following deal drop-off in 2023
Private equity dealmaking in the North West is showing signs of recovery after a subdued 2023. According to the latest provisional half-year data from CMBOR, the Centre for Private Equity and MBO Research based at Nottingham University Business School and supported by Equistone Partners Europe, there were 13 buyouts in the North West in the first half of 2024 with an aggregate value of £785m, compared with nine buyouts in H1 2023, and only six buyouts in H2 2023. With this increase in volume, the value of deals in the North West also grew 90% from £413m in H1 2023. The data is reflective of an increased interest in dealmaking in the North, with the North West having the second highest deal volume of H1 2024, and the highest outside London. Two North West-based deals were also included in the UK’s top 25 – Morson Group’s MBO and Perspective Financial Group.
Female founders summit to boost investment opportunities for women in business
A female founders’ summit is set to be staged in Edinburgh to boost investment opportunities for women in business. The inaugural Female Founders Growth Summit at RBS headquarters will focus on women planning to scale their businesses – helping them connect with key investors and provide learning and networking opportunities. Hosted by Pathways Forward, an initiative developed by businesswoman Ana Stewart, and Female Founders Rise, the all-day event will seek to join Scotland’s female entrepreneurs with the wider UK community. Stewart said: “The Female Founders Growth Summit will be the first ever of its kind in Scotland, and we’re excited to bring so many talented women founders together alongside private, angel, and institutional investors from across the UK. Centred on growth and scaling, there will be a mix of keynote talks, breakout sessions, panels and workshops looking at areas including the types of funding available to support growth trajectories.”
Highlands and Islands see record inward investment
Highlands and Islands Enterprise (HIE) has reported a strong year of investment and job creation, with over 1,200 jobs set to be created or retained in the region, including 82 jobs in fragile areas. The outturns for 2023/24 were achieved through a combination of financial and non-financial interventions by HIE. They included approved investment of up to £56.8 million in 339 projects with a combined total cost of £426.9m. The figures, which are subject to review by Audit Scotland before publication of HIE’s annual report in December, show that businesses supported by the agency across the Highlands and Islands are set to see combined turnover rise by £619.7m as a result, while international sales will grow by £47.7m. HIE’s support for social enterprises, meanwhile, is forecast to bring about a £9.8m uplift in the social economy.