Peter Gallanagh

Its Glasgow-based chief executive, Peter Gallanagh, told The Herald the firm also plans to strengthen its position in parts of Scotland where it is currently underrepresented.

Mr Gallanagh revealed that despite a more challenging market for deals, Azets remains committed to growth. The company, which also has a significant presence in the Nordic countries, is on course to achieve a turnover of £330 million in the current financial year.

This expansion strategy comes as businesses grapple with significant economic headwinds. Clients are increasingly turning to Azets for advice on navigating challenges such as rising employer National Insurance contributions and the increasing living wage. Mr Gallanagh noted that global geopolitical tensions and US tariffs are causing “concern pretty much across the board”.

He observed that this pressure is leading some firms to reduce spending in areas like marketing and ESG, while also delaying investment plans.

A major point of concern for clients is the forthcoming changes to Inheritance Tax (IHT), particularly the removal of business property relief. Greig McKnight, Azets’ regional managing director for Scotland, explained that this change could create a potential 20% IHT liability for many business owners, significantly impacting their decision-making and succession planning. Mr Gallanagh added that these reforms are prompting more families to have “conversations around inheritance tax” that were previously postponed.

Azets has grown rapidly through a series of acquisitions. The Scottish arm of the business was formed through the merger of Campbell Dallas, Springfords, and Scott Moncrieff under its previous parent company, Cogital Group, before rebranding as Azets in 2020. Its most recent Scottish deal was the acquisition of Paisley-based Milne Craig in August last year.

However, Mr Gallanagh, who has led Azets in the UK since 2022, emphasised a more selective approach to future acquisitions. “We are very choosy now on how we acquire,” he stated, noting the increased competition from other private equity-backed firms. The focus is now on finding businesses that either fill a “geographical white space” or enhance the firm’s existing services.

“It is no longer about just buying businesses for the sake of buying businesses,” Mr Gallanagh said. “It is ensuring that they are adding value to what we have and most importantly that their culture is aligned to ours.” He confirmed that Azets is already in discussion with firms in London and the east of England, with hopes of concluding a deal by the end of June.