Player flushed with success

IF YOU'RE doing a deal in Scotland, then you should be shouting: "Get me David Leslie!" For the second year running Leslie has been voted Dealmaker of the Year by his peers in the industry.

As head of PricewaterhouseCoopers' corporate finance team in Scotland, Leslie has instigated no less than ten major deals totalling more than £900 million during the last year and achieved premium prices for clients, all at double-digit multiples.

For the second successive year, Leslie's impressive portfolio and success in maximising value gave him a clear edge over a strong field to win the prestigious honour. His ability to originate deals continues to enhance his reputation as a man who makes things happen.

Leslie's reaction to winning the award was to switch attention on to his team. "Obviously, I'm delighted and proud to receive the Dealmaker of the Year award, but it should be renamed Deal Team of the Year because I have a fantastic team working for me backed up by the support of Frank Blin, chairman of PricewaterhouseCoopers in Scotland.

"I believe good deals are all about teamwork and we've been working for really good-quality clients, trying to make sure we do the right things for them by achieving good value."

One of the biggest deals Leslie was involved in was the sale of William Wilson - the privately-owned plumbing and heating business - to national building products chain Wolseley for what industry experts described as a "fantastic price" of £81m.

He was also instrumental in the sale of LCH Generators of Stirlingshire to Speedy Hire for £62m in a deal that netted £20m apiece for the owners - brothers James and John Pirrie - as well as providing a windfall for employees.

Leslie said: "We maximise value through hard graft. It's about a mix of things: looking at the business and where it fits in the market segment and thereby working out how valuable it is to the range of buyers; running an auction properly in order to get the right competitive tension; and negotiating a deal well and getting the best price for the business.

"Really, we make sure we are drawing out all of the base value of the business and bringing out what the strategic value of the business of the buyer is, and then making sure we extract as much of that for our client."

Leslie's peers praised his approach in originating deals. "The way the market is in Scotland it is not really possible to sit back and wait for the door to be chapped. You've really got to get out there and be pretty proactive.

"It's about being creative, imaginative and trying to think where you can get the best value for your client. There is a big element of relationship building in these big deals as well. Some of the clients we've done deals for in the last year we've known for four or five years - as its all about waiting for the right time to do the deal. But it is very important in the transaction world to build that relationship of trust."

Some might say corporate finance is dull but Leslie is hugely passionate about the market in which he works. "It is an exciting and stimulating environment," he says.

"In any deal you are being given responsibility for delivering the required outcome. You basically start with a blank sheet of paper and six months down the line you are sitting in a deal room with 20 professionals finalising the contract.

"I get a great feeling of elation when the contract is actually signed as it brings to fruition a lot of planning, negotiation and hard work to achieve a successful outcome for our client.

"There can be a lot of emotion around at completion as well because you get right in alongside the client during a deal. I recall that when we completed the sale of LCH Generators to Speedy it was a highly emotional moment for the two Pirrie brothers who literally had built up the business from scratch from their bedrooms."

Looking ahead, Leslie thinks current healthy levels of activity will continue in Scotland's dealmaking market. "I don't see it being a stormer of a year going forward for the next 12 months, but things should bubble along nicely."

He predicts a boom in private equity firms - both England-based and international - wanting to buy up businesses in Scotland. "There's likely to be a lot of private equity interest in Scotland. We have a number of Scottish private companies lined up to be purchased. We are inundated by private equity houses calling us, wanting to invest in Scottish businesses, and there is plenty of room for consolidation."

But the sale of a Scots firm to external buyers often raises fears about a loss of control and possible job cuts. Leslie said: "You have to be realistic with the private company market. How many want to grow, and how many will take the offer? The logic of many deals where private companies are sold is that the business often becomes part of a larger empire. As long as the business is retained in Scotland, from an employment perspective it is a good thing."

Leslie also predicts that the public company market will continue to be quite active in the next year and he hopes that the deals struck by big players could produce a domino effect and give other firms the courage to make their own acquisitions.

"If you look at the big deals in the utilities sector, financial services, oil and gas and significant entrepreneurs like Tom Hunter, Scotland has a great record of buying firms. Hopefully they will set an example and inspire middle-market companies, leading by example.

"I believe there are businesses out there in the middle market with the capability to do deals. But it is a question of whether those businesses have the ambition or are willing to take the risk."