The Leadbitter and Bouyges deal is mutually beneficail

Clients are treading very cautiously in the current market, so the Leadbitter and Bouygues deal could be the first in a
line of similar transactions.

The agreement appears a winner for both parties. Bouygues gains a firm with established clients and diversifies its business, while Leadbitter benefits from Bouygues’ balance sheet, which will enable it to win work it would not have otherwise.

The Leadbitter management team’s stake means they should share in any future growth.

Companies with debt rather than cash on their balance sheet are likely to be suffering from the caution in the market. These firms could find themselves locked out of deals and be on the look-out for a white knight.

Investment banks and consultancy firms are likely to be trawling through company accounts, looking for potential takeover candidates and the fat fees these transactions bring.