40 deals Leumi ABL – providing confidence
Asset-based lending is increasingly seen as a versatile and predictable form of funding that can deliver much needed liquidity to growing businesses
Leumi ABL, which has a regional presence in Reading, has seen an increase in dealmaking activity since the beginning of 2011 and a changing trend in the type of opportunities coming through.
According to Jonathan Hughes, regional sales director covering the Thames Valley and south at Leumi ABL, this is a notable shift: “During the past couple of years the focus has been on refinancing as businesses struggled to access the credit and flexibility they needed from their banks and were prompted to re-think their financing arrangements. Now the levels of introductory activity for transactions are catching up with refinancing opportunities. This points to greater confidence in the business sector and it’s encouraging to see healthy businesses at last forging ahead and starting to implement acquisition and growth strategies for 2011 and beyond.”
These are ideal scenarios for ABL. Over the past year as businesses and their advisers have sought more innovative approaches to financing growth, there has been a greater awareness of the ability to use stock and machinery as solid collateral. Realising the value of those assets on the balance sheet as a valuable source of finance, Leumi ABL is
seeing increasing numbers of proposals coming through from corporate finance boutiques and venture capitalists for more multi-asset-based deals.
A recent example is the £1.25 million invoice discounting and plant and machinery facility provided to a leading specialist manufacturer of steel wires to support the company’s growth plans.
Other recently completed deals include Stehlin Hostag Ink UK, a £30m turnover distributor of inks to the packaging and printing trade. Leumi ABL put in place a £3.5m invoice discounting facility which will provide the flexibility and confidence the business needs to support further growth.
By joining forces with its parent bank, Bank Leumi (UK), Leumi ABL is well placed to support businesses with a comprehensive funding package. This was the case when a deal was recently completed with £16m turnover doormat and textiles distributor Primeur. The new £2.7m asset-based lending facility comprised a £1.5m invoice discounting line provided by Leumi ABL, supported by a further £1.2m from Bank Leumi (UK).
Hughes adds: “We take a very service-driven approach to structuring the deal, taking the time to understand the true potential of our client’s
Do you want to sell your business at the right price?
Business owners wanting to hoist the ‘For-sale’ sign in order to spend more time with their families and friends, or even move on to their next project, often turn to their accountant as the first crucial step to selling their greatest asset, which may not always be a good thing, says international mergers and acquisitions (M&A) specialist BCMS Corporate.
Newbury-based BCMS, which sells more mid-market private companies in the UK than any other corporate finance house, is offering those who are considering a sale now or within the next three years – as well as those who are just curious about the value of their business – the chance to attend a free seminar on May 10 at the Macdonald Botley Park Hotel, Golf & Spa in Southampton.
One in a series of half-day seminars taking place across the country over the next six months, the event will present seasoned M&A experts who will answer delegates’ questions as well as give practical advice on hot topics, such as finding ideal potential buyers, generating a competitive bidding process, and negotiating and closing the right deal for the maximum value.
The event’s two informative sessions are crammed with facts and real examples of companies that have been brought to market successfully (or unsuccessfully), providing business owners in the south east with insights into the factors that can influence a business sale as well as revealing why so many
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companies fail to sell, what motivates buyers to pay more and more importantly how to get the maximum value.
As a bonus, at the end of the seminar delegates will be given a 78-point checklist to get them started on their journey to a successful business sale as well as a free copy of the publication A Refreshingly Different Approach to Selling your Business for its Maximum Value.
Dave Rebbettes, director of BCMS Corporate, said: “These informative, fast-paced sessions aim to give owners and shareholders of businesses with a turnover exceeding £1 million sound advice based on 20 years’ experience of selling businesses. By the end of the seminar, attendees will know how to go about generating maximum value for their business, which will consequently give them the financial freedom to spend more time with family and friends, or even to get started on their next project.”
On average, BCMS Corporate says it generates offers for companies that are 40% higher than traditional valuations. The key points outlined at this half-day event have been pioneered by the M&A specialist and have proven to generate final offers that are 2.5 times higher than the initial bid for a company. Some 2,500 delegates attended these seminars last year alone.
Details:
www.bcmscorporate.com THE BUSINESS MAGAZINE – THAMES VALLEY – MAY 2011
Jonathan Hughes
business. We focus on providing solutions that will give our clients the confidence to exploit future growth potential.”
Details: Jonathan Hughes 0118-9001610 07584-630762
jhughes@leumiabl.co.uk www.leumiabl.co.uk
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