From corporate finance to restructuring
Scotland's restructuring advisory firms are bracing themselves for a bumper 2009. However, most are transferring staff out of corporate finance teams rather than recruiting externally. This could change though.
If deal activity is anything to go by, corporate financiers are at a loose end. In 2008 the value of completed mergers and acquisitions north of the border fell 43% on 2007, according to figures from information provider Corpfin.
By comparison, restructuring teams were busier than ever and are getting busier still. Deloitte, for example, just redeployed 52 corporate financiers into its restructuring arm across the UK.
David Bond, director of Edinburgh-based headhunter Cairns Bond, agrees that this is an increasing trend in Scotland as well.
"Rather than make rash redundancy decisions, firms will look to internal resources for the insolvency and corporate recovery roles," he says.
Craig Campbell, director of corporate finance at Deloitte in Glasgow, says it's a logical step because the skills are inter-related.
"Often to avoid a company going into administration and maximise value for the stakeholders there are information memoranda, sales processes, and contract negotiations being handled and that's where corporate financiers would spend their time. Should a company enter administration these same skills can also be very valuable," he says.
Graeme Cassells, partner at PKF Corporate Finance in Glasgow, says opportunities in restructuring are likely to grow as healthy companies seek to take advantage of struggling rivals: "We have quite a few clients who are waiting to see what happens in the market, because they are in a good position and either have cash or access to finance."
