Speaking to Building in 2015, the then relatively new chief executive of famously conservative contractor Kier, Haydn Mursell, waxed lyrical about his experience and competence at executing mergers and acquisitions. Dealing with the City investors was his “comfort zone” he said. “If you do M&A properly,” he asserted, “then it is very, very beneficial to a group.”

Last week, however, Mursell unexpectedly stepped down as chief executive after just four and a half years at the helm of the £4.5bn turnover construction business. All the signs are he was forced out following a shareholder revolt over a much-criticised attempt to repair the firm’s debt-laden balance sheet – debts taken on to fuel Mursell’s four-year acquisition spree. 

Left with nearly £400m of debt after Kier’s three big acquisitions, Mursell was forced into a last-minute rights issue when its lenders decided to pull in their borrowing, and paid the price for its failure to attract investors. Shares in the firm fell in value during his period in charge. So what really went wrong and how can the firm look to restore its reputation for stability with both the City and clients? 

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