What are the implications of mergers and acquisitions for the delivery of major projects?

2015 has seen continued growth in M&A activity, creating new opportunities, and new challenges, for all concerned. With this activity comes a tension between uncertainty for those concerned and a need to maintain focus on project delivery.

For clients, larger contractors may bring an increase in the ability of firms to carry out major projects effectively, but at the cost of a potential reduction in competitive tension and even greater difficulty in providing a level playing field for small to medium enterprises.

For contractors, consolidation can provide a strategic advantage, increasing their buying power or access to new markets while potentially reducing competition. From a shareholder perspective the benefits are clear, provided regulatory constraints can be effectively managed. Following consolidation, larger contractors may be more attractive to lenders and investors, potentially giving access to cheaper debt. Investors will be keen however to ensure that contractors do not overreach, taking on acquisition debt which may prove a drag on the consolidated business or diverting management attention from core business activities.

From an employee perspective consolidation brings uncertainty. Employees may face the prospect of redundancies in merged organisations, while suppliers may find their bargaining position substantially weaker when faced with fewer and larger contractors.

Our seminar will consider how best to successfully deliver major projects in the face of M&A activity, addressing the following key questions:
• What are the strategic drivers for M&A activity in the UK and globally?
• What can we learn from previous experiences?
• What are the impacts of consolidation for clients?
• How are employee concerns addressed in a merger context?
• What are the stoppers and regulatory constraints?
• What are the financial implications?