BRODIES law firm has predicted mergers and acquisitions activity will increase in the oil and gas sector in spite of the crude price slump after its corporate specialists made a strong start to the year.
The firm’s corporate team advised on £8.2 billion deals in the first six months of 2015, during which M&A activity remained buoyant, bucking predictions that concern about the general election could stifle activity.
Brodies said it advised on a range of high profile transactions in Scotland, such as acting for Abellio as it took over operating the ScotRail franchise.
The firm said the plunge in the crude price had impacted on deal activity in the North East Scotland heartlands of the oil and gas industry in the first half.
However, Shuna Stirling, Brodies’s Head of Corporate, said: “Our oil and gas team is assisting entrepreneurial clients and exploration and production operators who see the opportunity to revitalise and make profit margins on assets in the United Kingdom Continental Shelf.”
She added: “We expect to see more of this type of activity in the market later in the year. There remain significant opportunities out there for businesses with the resources and desire to seize them.”
The increase in M&A activity seen in recent months has provided a welcome boost for Scotland’s lawyers and accountants who make a lot of their money from transactions work.
The financial crisis of 2008 triggered a long slowdown in deal activity.
Last week Brodies reported that it increased turnover by 11.2 per cent in the year to April 30, to around £58m from £52m in the preceding year.
Brodies, which operates as a limited liability partnership, increased profits by 14.2 per cent before partner distributions to £27.1m.
The LLP has offices in Glasgow, Edinburgh and Aberdeen.
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