Stephen Emerson

Addy Mohammed, founder of Simple Online Healthcare, says Scottish scale-ups are being held back by three main barriers: insufficient growth funding, weak international connections and a shortage of experienced leadership. His company, which is self-funded and based in Glasgow, has grown revenue from £20 million to £155 million by capitalising on demand for GLP-1 weight-loss drugs and expanding into nutritional support. Analysis of Scotland’s Tech 50 shows that more than half of the companies remain below £50 million in turnover, reflecting the “valley of death” between early traction and repeatable growth. CodeBase estimates that scale-ups, though only 0.52% of Scottish SMEs, generate a third of SME turnover, and that closing the growth gap could add £22 billion to Scotland’s economy.

Thirteen of the 200 Scottish mid-market companies tracked have confirmed private-equity backing, generating more than £489.7 million in turnover and £62 million in EBITDA. Technology and telecommunications and the energy supply chain account for most of the investment value, while Edinburgh, Aberdeen and Glasgow contain ten of the 13 backed companies. Nine of 12 companies with comparable figures increased turnover, led by Oceanscan. HNH’s Neal Allen says investors are increasingly seeking “AI-proof” businesses with significant manual or infrastructure elements, including fire and security, civil engineering and related services.

Aaron Kyle and his siblings are taking on greater leadership within Ayrshire’s RAD Hotel Group, a family-run hospitality business founded by Robert and Vivien Kyle. The company has expanded from a small salon into a portfolio of renovated hotels and wedding venues employing more than 800 people. Aaron’s return from accountancy to the family firm helped distribute responsibilities as the business continued to grow, with his influence shaping the group’s contemporary design direction. Major decisions remain collective, though often marked by generational debates. After selling The Carlton in Prestwick, RAD aims to shift from repeatable renovation projects toward more distinctive venues across Scotland, with long-term plans to remain family-led.

Scottish corporate finance professionals report a resilient dealmaking environment in the first half of 2026 despite economic and geopolitical uncertainty. Activity remains strong in technology, energy transition, life sciences and professional services, although buyers are increasingly selective and timelines have lengthened. High‑quality assets continue to attract competitive interest, while traditional sectors face valuation pressure. Private equity availability, overseas investment and supportive debt markets are contributing to sustained deal flow, with expectations of increased activity in the second half of the year.

Scotland recorded 83 transactions worth more than £471 million in Q2, driven largely by high-value investments in energy and artificial intelligence. Blue Energy’s £295 million nuclear-focused raise, Wordsmith’s £52 million Series B, and Drax’s £36 million acquisition of Flexitricity dominated activity. Most other deals occurred at lower, often undisclosed values, with professional services leading by volume. Several significant transactions, including Capricorn Energy’s takeover and Tomoro’s sale to OpenAI, remain pending for Q3.