Spotlight On... SPOTLIGHT ON...
Accelerated Mergers & Acquisitions
Tyrone Courtman, PKF Cooper Parry
If a business is underperforming, it is vital to identify and resolve any issues that may be affecting profitability. Early recognition and intervention of a business in distress is essential in protecting shareholder value and provide owners with options to protect value. Here, Tyrone Courtman discusses accelerated merger and acquisition.
T Q Q
yrone Courtman, a partner in PKF Cooper Parry, is responsible for leading the firm’s Corporate Restructuring team. Tyrone is a Fellow member of the ICAEW, and
a Licensed Insolvency Practitioner. He is a former President of TMA UK and serves as a member of the ICAEW’s Insolvent and Restructuring special interest Group. Tyrone is currently President of the European Association of Certified turnaround Professionals.
What more can you tell us about your firm?
PKF Cooper Parry holds the number one market position of acting for more locally owned private
businesses in the East
Midlands with a turnover in excess of £5m than any other accounting, tax and advisory firm. With roots going back over 100 years we remain truly committed to the region and have ambition to go much further.
Why might a company require an accelerated M&A process?
The lending environment post the credit crunch has placed considerable financing constraints on the needs of many businesses, leaving them vulnerable to the potentially
40
www.finance-monthly.com
value destructive formal recovery and insolvency processes.
In such situations, when securing fresh cash/ investment is critical to the businesses very survival, accelerated M&A processes facilitate a quick turnaround in the businesses financial fortunes. They often resolve the immediate balance sheet restructuring issues so as to facilitate a turnaround in the businesses operations in order to improve its trading performance in time, through greater commercial leverage of their combined positions and greater economies of scale.
What are the different options available to companies in this area and what are the potential benefits of the process?
Q
Different options maybe to affect a sale of substantially the whole of a company’s business and assets as a going concern or trade debt for equity or issue new equity, diluting the former owners interest in exchange for desperately needed new monies. Or go bust. The choice is often that simple bringing many frustrated equity holders to the negotiating table.
Q
Do you have a success story that you can share with us?
A number involving an accelerated M&A process resulting in a sale of current equity
positions in exchange for new money and a number where two competing parties have been brought together albeit their marriage has had to be consummated through a formal insolvency process like a Pre-pack administration.
Q
Is there anything else you would like to add?
Formal insolvency processes can typically be value destructive for all concerned, including the very business at the heart of the financial difficulties, resulting in potentially very good but poorly managed business ceasing to be. Accelerated M&A enables through an honest reconciliation of where the various stakeholders interests sit in the insolvency pecking order to resolve their differences, to secure the very new investment required to take the business forwards, and to prospectively deliver the necessary returns for the new investors. They help to save the business to preserve jobs and secure a future in which the true enterprise value of the business can be realised for the benefit not just of the equity holders but for the benefit of the wider society as a whole.
Contact Tyrone Courtman
Partner & Head of Restructuring
Email:
tyronec@pkfcooperparry.com Web:
www.pkfcooperparryrestructuring.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74