TWO of Scotland’s most venerable chartered surveyors have merged in a deal billed to have created “the country’s leading powerhouse” in property and construction services.
Dundee’s Shepherd Chartered Surveyors has joined forces with St Andrews-based Hardies, creating a practice that employs 350 staff and turns over £25 million.
The deal was presented as combining Shepherd’s strengths in residential and commercial valuation, property management, and commercial property dealing, with Hardies’ expertise in areas such as construction services, project management, building and quantity surveying.
Shepherd, formed in 1880, has 250 staff in 33 offices around the country. Hardies, which celebrated its centenary in 2013, employs 100 at its 14 sites.
Although the firms are merging, it was announced both practices will retain their branding and identities. Hardies, which services the private and public sectors, will be the construction arm of the new business, while Shepherd will be the main valuation division.
The enlarged company will be led by George Brewster, senior partner at Shepherd, and Hardies’ managing partner Derek Ferrier.
Mr Brewster said the merger has come about after Shepherd went through a “few false dawns” as it sought potential deals with other surveyors to underpin its growth ambitions.
“We’ve known what the opportunity was, and we have done for some time, but finding the right fit just hasn’t been easy,” he said. “We have had a few false dawns. Hardies was the obvious fit – it’s just taken a bit of time to persuade them.
Mr Brewster added that the age profile of the Hardies partnership will see a number senior figures at the practice retire in the coming years. Their roles will be filled by Shepherd people on the management board when the time comes.
Mr Brewster acknowledged the duplication of office capacity in certain areas will eventually result in some “rationalisation”, but he pointed out any office closures will be “governed” by factors such as “lease terms and opportunities that sit within these agreements”.
He noted: “That won’t be today or tomorrow.”
Mr Brewster was adamant, however, that job cuts will not be a feature of the merger.
“We need the jobs,” he said. “If you look at the Shepherd business, we have just under 50 graduates, so we are building this business for the long term.
“That’s a big commitment year on year so we need the manpower and the staff that come with the Hardies opportunity.”
Asked whether the uncertain backdrop had influenced the decision to merge, Mr Brewster said the deal was primarily driven by Shepherd’s growth aspirations.
“Any prudent business needs to keep moving,” he noted. “If you stand still you’ll get knocked over at some point.
“This is about us finding an opportunity to work with people that have our ethic and culture and making the most of it. The bigger political thing was not really a consideration in doing the deal.”
The merger comes as Mr Brewster said the commercial property sector in Scotland is “showing some strength” after a “wobble” immediately after the Brexit vote.
“Whether that strength has been given by the correction of the pound or the overheating in London or the fact Scottish property values are a real opportunity, it is very difficult to say,” he said.
“I’m sure there is a combination of all the factors.”
Mr Ferrier said: “This merger between Hardies and Shepherds establishes us as the country’s leading powerhouse in property and construction consultancy services with the largest number of building surveyors, valuation surveyors and related construction consultancy professional services in Scotland.
“Our new merged practice will benefit from shared overheads which should reduce the operating costs and substantially increase the long-term future of both practices.”
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