What's happened
The Scottish deal market has shown signs of recovery in early 2026, with high-profile transactions like NatWest's acquisition of Evelyn Partners and AG Barr's acquisitions. However, deal completion remains challenging due to longer processes, deeper due diligence, and cautious buyers, especially outside top-tier assets.
What's behind the headline?
The Scottish deal market is experiencing a cautious recovery, with headline transactions masking underlying challenges. High-profile deals like NatWest's a32.7bn acquisition of Evelyn Partners and AG Barr's acquisitions demonstrate strong demand for prime assets. These deals are driven by strategic shifts towards fee-based income and portfolio reshaping.
However, beneath the surface, deal completion is becoming more complex. Longer due diligence, deeper financial scrutiny, and increased use of deferred consideration are delaying closures. This reflects a more selective environment where only well-prepared, high-quality businesses are securing deals.
The market is shifting because buyers are more cautious due to inflation and rising costs, which are weighing on smaller, less differentiated businesses. As a result, the focus is on premium assets, while mid-market and less distinctive companies face significant hurdles in attracting capital.
International interest remains strong, with deals like Zonal's acquisition by Volaris Group illustrating ongoing appetite for scalable software assets. Meanwhile, private equity firms are increasingly engaging in bolt-on acquisitions to support buy-and-build strategies.
Looking ahead, the market will likely continue to favor high-quality assets, with longer timelines and more disciplined dealmaking becoming the norm. The focus on strategic fit and asset quality will shape the Scottish deal landscape for the foreseeable future, with only the best-positioned businesses securing successful transactions.
What the papers say
The Scotsman articles by Stephen Emerson, Scott Reid, and the Guardian provide a comprehensive view of the current Scottish deal environment. Emerson highlights the tension between activity and deal closure, noting that only the best-prepared businesses are securing deals. Reid emphasizes the return of confidence but underscores the increased scrutiny and longer timelines. The Guardian adds context by describing how external economic pressures, such as inflation and geopolitical uncertainty, are influencing buyer caution and deal complexity. These sources collectively illustrate a market that is recovering but remains highly selective and cautious, especially for mid-market and less differentiated businesses.
How we got here
The start of 2026 has seen increased corporate activity in Scotland, driven by strategic consolidation and a return of confidence. Despite this, rising costs, inflation, and cautious buyer behavior have extended deal timelines and increased deal scrutiny. High-profile transactions have highlighted a focus on quality assets, with international interest and private equity activity supporting the market.
Go deeper
Common question
-
What Are the Latest Trends in Scottish Dealmaking in 2026?
The Scottish deal market is showing signs of recovery in 2026, with high-profile transactions and increased activity. However, deal timelines are longer, and buyers are more cautious due to economic pressures. Curious about what's driving these changes? Below, we explore the key trends, challenges, and recent transactions shaping Scotland's business landscape this year.
More on these topics
-
Evelyn Partners is a wealth management company based in the United Kingdom offering financial planning and investment management services.
-
NatWest Group plc, is a majority state-owned British banking and insurance holding company, based in Edinburgh, Scotland. The group operates a wide variety of banking brands offering personal and business banking, private banking, insurance and corporate
-
FirstGroup plc is a British multi-national transport group, based in Aberdeen, Scotland. The company operates transport services in the United Kingdom, Ireland, Canada and the United States.