Corporate Finance Annual Review Trusted Thinking
Economic review 2013 It would be fair to say that looking back over 2013 from this vantage point, the business landscape seems better than we thought it would be at the start of the year. Business confidence began to pick up in early summer and this has been reported by professional business advisers and funders across the North West. This anecdotal evidence is also borne out by the findings from the Chamber of Commerce s quarterly economic surveys (QES) and the recent improvement in the GDP statistics. In particular, over the last 12 months confidence across both manufacturing and service sector businesses in Lancashire, as evidenced by the QES results, has been strong and improving. It is a matter for debate the extent to which Government policies nationally and regionally have helped or hindered such a fledgling recovery. I have a strong sense that what is underpinning this recovery (if that is what it proves to be) is almost a sense amongst many business owners of can t hang around forever and that they need to do something. Stephen Gregson Corporate Finance Director Corporate Finance Annual Review
2013 transactions We know that activity is picking up in the South East and other regional pockets, but that transaction volumes overall remain lower than in previous years. In our own region we are also seeing an upturn in deals and below you can see a sample of some of the transactions that our team has been involved with this year. M&S advised the shareholders of County Care Ltd on its sale to Carewatch Care Services Ltd. M&S advised and carried out due diligence investigations for EH Booth Ltd on its acquisition of Sharrocks (Fresh Produce) Ltd. M&S advised and carried out due diligence investigations for NRL Ltd on its acquisition of Petrolic Consultants Ltd. M&S advised Summerseat Garden Centres Ltd on its acquisition of some of the trade and assets of Bradley Fold Garden Centre. M&S advised and carried out due diligence investigations for Musters (JH) Ltd on its acquisition of Green Cross Pharmacy Ltd.
Outlook for 2014 Whilst it is of course often true that thought precedes action at the moment we are yet to see much in the way of actual M&A activity arising from the seeming improvements in local business confidence. I think that the first half of 2014 will be a crucial time when we will see whether the increased confidence levels of 2013 are anything other than just talk. The market is still seeing high levels of caution on the part of potential acquirers. I think the reason for this is that potential acquirers will be weighing up the risk of a) not moving quickly enough to acquire / invest and so missing the early stage of economic recovery and b) borrowing too much too soon from funders and then the hoped for recovery failing to materialise and the business is left saddled with high levels of funding which must be serviced. The risks of getting the above wrong are potentially far more onerous under the latter scenario. In a sense 2014 is a make or break year. The cautious increase in optimism will have to manifest itself in further action and for many businesses such action will need to include a loosening of bank lending requirements. The next 12 months look rosier than they did this time last year but the recovery is slight and fragile and not without very significant challenges. Corporate Finance Annual Review
Meet the team Stephen Gregson Director Stephen joined our team from KPMG Corporate Finance in Manchester in 2002. He has advised businesses on mergers and acquisitions, fundraising and strategic planning across a wide range of sectors including waste management, haulage, construction, engineering and wealth management financial services. At Moore and Smalley Corporate Finance he has continued to focus upon advising owner managed businesses on strategic direction, mergers and acquisitions, disposals, and fundraising. Recent transactions he has advised upon include the sale of Chas Kendall Ltd to Gala Coral and the sale of Moss Ltd to ICR Group Ltd. Paul Bennett Senior manager Paul joined Moore and Smalley in January 2007 from the Manchester office of Cassons where he had been a manager for six years. Prior to this he had spent five years working in the Corporate Services team at Pierce in Blackburn. Paul, a qualified Chartered Accountant, has extensive experience of providing a wide range of advisory services to businesses of all sizes and has had significant involvement with clients in the motor trade, professional services, manufacturing and leisure sectors. At Moore and Smalley Paul has recently advised clients on a variety of transactions including acquisitions, MBOs, due diligence projects, fundraising and disposals. Ian Waddingham Senior Manager Ian joined Moore and Smalley in October 2006 from Cole Associates Corporate Finance. Ian began his career with KPMG in Preston and qualified as a Chartered Accountant in 2003. Ian has experience of providing a range of advisory services to businesses of all sizes across the North West. At Moore and Smalley Ian has been involved in a broad range of transactions including acquisitions, disposals, MBOs, fundraising and due diligence. Ian also provides advice to clients listed on ICAP Securities & Derivatives Exchange (ISDX Growth Markets). Corporate Finance Annual Review
Why Moore and Smalley? Dedicated specialist corporate finance department of professional staff Full scope advisory service integrated in house specialist tax, financial planning and accountancy departments Over 30 years corporate finance experience Established track record in delivering successful outcomes for clients Extensive contacts with banks, private equity and other funding providers across the region and nationally Proven ability to identify and negotiate with plc decision makers Excellent all round business advisors Decent people to work with Corporate Finance Annual Review
MHA businesses for sale and wanted Moore and Smalley are founder members of MHA, a UK-wide association of independent accountancy and business advisory practices with a combined turnover of over 100m. We are also members of Morison International, which effectively replicates MHA but on the international stage. We have found that access to national and international expertise is invaluable to our clients, provides an enhanced voice for local SMEs and has additional benefits for those seeking to buy or sell a business. MHA members collaborate on each member firm s corporate finance projects. In particular, when selling businesses for clients and business acquisition searches, membership of MHA enables us to broaden the net on potential acquisition targets or potential active acquirers. This offers our clients a real advantage in accessing opportunities, and helps increase the probability that they achieve the best possible results. Each month we update our website www. mooreandsmalley.co.uk with new businesses for sale and wanted. If you would like to receive our monthly mailer regarding the latest businesses for sale and wanted then do get in touch with a member of the team.
@MooreandSmalley Moore and Smalley LLP Offices in Preston, Blackpool, Kendal, Lancaster, Nottingham Moore and Smalley LLP is a limited liability partnership registered in England and Wales: No. OC313896. Registered office: Richard House, 9 Winckley Square, Preston, Lancashire PR1 3HP. The term partner indicates a member of Moore and Smalley LLP who is not in partnership for the purposes of the Partnership Act 1890. A list of members is available from our registered office. Moore and Smalley LLP are registered to carry on audit work in the UK by the Institute of Chartered Accou sntants in England and Wales. Authorised and regulated by the Financial Conduct Authority. An independent member of MHA, a national association of UK accountancy firms. UK member of Morison International with independent member firms worldwide.