mandadeals.co.uk
CORPORATE FINANCE
that it is more of a case of strong and weak players within different verticals: ‘I think we can all pick out retail as being an area that is in a disastrously poor state, but even within that remit there are some good performers.
‘And at the same time, in some of the stronger sectors we have got people who are not doing well, so it’s less about trade segregation and more about businesses that don’t have gearing.’
Askaroff thinks that the struggles of the SME sector and smaller commercial businesses have come after a revival of sorts by the financial services, with the pinch coming much later for business owners.
PLAYING IT SAFE
Rather disappointingly, he adds, the inability to access finance is leading to stronger businesses not seeking out funding for growth, but instead becoming trapped in an environment that has driven them to seek safety.
For companies that are looking for funding, Askaroff does not believe the banks are backing up their pledges with solid results. He says that all too often
undertaking, which is why the government is guaranteeing them.’
For the private sector to help plug the public sector gap, more investment in SMEs is needed, he says, with stimulation required to get businesses over the hump and into growth: ‘It’s not quantitative easing, it’s just getting the banks to lend.’ The old 3i model is a strategy that Askaroff sees as moving in the right
projects taken to the bank are shot down if there is no debtor book or property (against which to secure any financing), with even the Enterprise Finance Guarantee scheme only getting through about ‘once in every four’. Askaroff adds, ‘There is still some momentum, but someone needs to give the banks a kick and say that this is a risk
‘All too often projects taken to the bank are shot down if there is no debtor book or property’
direction, with more investments in the sub-£1 million bracket geared towards SMEs. One frustration that Askaroff sees as driving good business out of the country is the 50 per cent tax rate, which he believes is causing entrepreneurial owners to become frustrated with the system and shy away from growing businesses in the UK. However, with expansion behind them in the past year and the corporate finance arm of the business performing well, Askaroff is confident that the next 12 months could bring another record year for EMC. ■
EMC: VITAL STATISTICS
Founder and chief executive: Nik Askaroff Established: 1989 Consultants: 23 Head Office: Eastbourne Tel: 01323 410144 Website:
www.emcltd.co.uk Projects managed in the last year: 268 Transactions completed: 18 Pending deal value: £84m
Mergers & Acquisitions 57
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