Articles From PEM Corporate Finance
More Potential Buyers than Willing Sellers - M&A Activity set to increase in 2010
Can one plus one ever equal three? Yes it can. If you are selling your business - find a strategic buyer which will enjoy synergies from combining the businesses and which knows it is in competition to buy and you can maximise value and share in the marriage value. What are the chances of pulling this off in the current climate? Most recent surveys of corporate opinion show that firms are far more likely to engage in M&A activity over the coming year. E&Y found 57% were more likely to make an acquisition while within BDO’s rather more “gung-ho” sample ...More > >
Buyouts picking up in 2010?
Recession impacted on the number of management buyouts being concluded but now we see some recovery on the back of increased liquidity. Banks are funding deals again. Also, business confidence has risen and so managers are prepared to invest in buyout opportunities. Buyouts can allow management teams to take control of their own destiny, and the opportunity to earn a reward for their efforts. So how can you spot such opportunities?Here’s five signs to look out for; restructuring of a group; a distressed business with some decent subsidiaries; non core businesses in a group; institutional investors seeking an exit; or an ...More > >
Time to come out of hibernation?
Last year was a difficult year for M&A worldwide – with many advisers downsizing significantly and going into “hibernation”. Thomson Reuters reported European M&A down 65% from the peak. Meanwhile, in a sign of the times, Mergermarket reported a 370% increase in insolvency deals to a level just short of the quantum done over the previous four years.So is it time to come out of hibernation? What is this year going to be like? The government tell us we have come out of recession. But then in a recent Harris poll just 10% of people said they believed government figures. ...More > >
What next?
The effect of the “credit crunch” on the M&A market has been extensively reported, although most of the coverage has focussed on the virtual collapse in the “mega-deal” market. What’s happening at the lower end of the scale, with the type of activity that forms the bread and butter of deal doing in East Anglia? And what strategic decisions should business owners be making as a result?The changes to Capital Gains Tax kept the mid market going, with a rush to conclude transactions prior to the April 2008 deadline. Since then liquidity has been restricted, and business owners have had ...More > >
Making bold moves in recession
While many businesses out there are struggling to stand still, or even to survive, for the strong this is a time to make bold moves to grow organically or by acquisition.For strong businesses there are many opportunities to grow organically. Targeting customers of weaker competitors or using financial and market strength to buy better are good examples. Reacting quickly to the demise of competitors can be lucrative – witness the good recent results from HMV on the back of the collapse of Woolworths and Zavvi. One off opportunities often present themselves – there is currently a race amongst publishers world ...More > >
Achieve Succession with a Management Buyout
Securing succession is a big issue for all business owners. Selling to management in a Succession Buyout is an increasingly popular solution. PEM Corporate Finance has led and structured a number of these transactions over the last year including the MBO of award winning jewellery company Cellini Pearls and at First Copy Corporation, the UK’s largest reseller of Xerox printing equipment. Here are five reasons why you should consider one: You'd like your successful independent business to continue beyond your retirement. This is most likely if you sell to your team. A trade sale might lead to ...More > >
