The latest research from the accountancy firm shows more than three-fifths of PE-backed businesses (64%) are looking to enter new international markets, ranking it as the biggest opportunity for growth over the next six months.

The firm’s bi-monthly Economic Engine survey of 500 mid-market businesses – companies with revenues between £10 million and £500m – shows that while domestic growth remains a priority for private equity-backed companies, investment will also fuel growth in other territories over the next 12 months, including North America, Asia-Pacific and the EU.

This correlates with the latest export figures from the Office for National Statistics (ONS). These show that international trade remains resilient, increasing by £2 billion in January, up by 6.7%, with businesses in Scotland exporting more than £67bn of goods and services, according to the ONS ‘International trade in UK nations, regions and cities’ report.

While 59% of PE-backed businesses plan to increase UK investment, this number is dwarfed by an overwhelming 95% of independent owner managed businesses that intend to ramp up domestic investment in the likes of people, technology, capital expenditure and acquisitions over the next year. Unsurprisingly, the majority of those mid-market businesses believe the UK is more attractive than other countries to invest in, compared to 77% of PE-backed businesses.

Craig Martin, partner at BDO in Scotland, said: “There’s no doubt that geopolitical uncertainty has made Scottish businesses take a step back and reassess where investment is being channelled over the coming months.

“However, what’s clear from our Economic Engine data is that the appeal of international markets remains strong, particularly amongst private equity-backed businesses. They’re intent on making the most of new growth opportunities, whether that’s by tapping into a larger customer base, unlocking new revenue streams, or by diversifying their market presence in overseas territories.

“While this approach doesn’t come without its challenges, especially in the current climate, we regularly work with PE-backed businesses such as Astrak and Naviam that are well equipped with the strategic support and funding to explore and execute effective global M&A strategies.  It is this level of ambition that will be vital in helping to fuel the Scottish economy in the coming months.”

Recent research shows that Scotland-headquartered private equity-backed businesses achieved average annual EBITDA growth of 34% over the latest three-year-period, underlining the positive impact that private equity is having on the Scottish economy.

The second Private Equity Value Report from Real Deals, developed in association with BDO, highlighted 12 qualifying businesses in Scotland. Ten of which have ranked in the top 245 private equity-backed companies across the UK.