Scottish Seafood Activity

20 August 2018

In pursuit of accelerated growth, Scotland Food & Drink Ambition 2030 aims to double the value of the industry to £30bn by 2030 across the UK and Internationally and the Seafood sector has a key part to play in delivering the growth plan aspirations.

Scottish Seafood sector is enjoying a period of sustained growth and success and as a result we have experienced an increase in M&A activity and investment from overseas players looking to establish a presence in Scotland.

Examples of this are the £98.4m acquisition of Macduff Shellfish Group, one of Europe’s leading wild caught shellfish processors by Canadian business Clearwater Seafoods and Estonian based PR Foods £13m acquisition of John Ross Jr, a traditional smoked salmon business.

Despite the political and economic uncertainty which Brexit brings, we believe this trend will continue as overseas investors look to secure future supply of premium Scottish Seafood.

If you are considering selling your business here are some tips to ensure a successful outcome;

  • Engage professional advisors – Advisors who know the sector can normally maximise value through creating competitive tension and allowing the management team to focus on running the business.

  • Do your diligence on the purchaser - it is important to get comfort on the purchaser’s ability to deliver what they say they will.

  • Ensure information provided is accurate - purchasers will use information provided as a basis for their offer.

  • Don’t succumb to the purchasers charm - it is important to maintain an arm’s length relationship with the purchaser until the deal has completed.

  • Deal with potential issues early - it can be too easy to ignore potential issues and hope that they will go away rather than deal with them as they arise.

  • Consider the most efficient tax structure - most purchasers are flexible when structuring a deal to ensure that the vendor can take advantage of any tax benefits available.

  • Avoid deal fatigue – to ensure the transaction is completed within a reasonable timescale, ask the purchaser to produce a timetable detailing all key stages of the process up to completion.

For more information please contact Derek Mair (derek.mair@aab.uk) or your usual AAB contact.

To find out more about Derek and the Corporate Finance team, click here.

 

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