Analysis Bigger is better

摘要

Bouygues' takeover of Leadbitter highlights the need for strong balance sheets and the capacity to offer financing solutions to both current and potential clients, writes Dave Lowery. Public and private sector clients want maximum value for money and being able to offer financing solutions or take on more financial risk could be a key differentiator for those contractors willing and able to do so. Firms with debt, rather than net cash, could find themselves locked out of deals where there are wary clients. The private sector is expected to provide the bulk of the finance for the government's ￡200bn national infrastructure plan so a strong balance sheet is a must for those firms expecting to benefit from this investment.