40 corporate finance


RSM Tenon enjoys a healthy year of deal activity


As another year draws to a close, the team at RSM Tenon has been reflecting on the achievements and challenges of 2011, writes director, Darren Miller. For our clients, the importance of making good decisions has seldom been more critical


There have been great opportunities for those with the confidence and vision to press forward with their strategic plans, but the potential risks of getting things wrong have tempered the ambitions of many entrepreneurs. We often hear that ”flat is the new growth”, ”it’s time to stick to the knitting”. Uncertainties in the market relating to the euro crisis, inflation concerns and government spending cuts have certainly had an impact on M&A activity, but despite all this we have experienced a very healthy year of deal activity.


Across the southern region, encompassing our Reading, Basingstoke, Southampton and Swindon offices, up to the end of October we have completed 46 transactions with a combined value in excess of £500 million. Deals from £500,000 to £86m; advising our clients through the crucial decisions on their transactions.


The variety of projects has been wider than experienced in recent years. The steady flow of projects for corporate consolidators has been robust and smaller business disposals driven by a desire to retire have continued. Our serial acquisitive clients, Micheldever Tyres, Capita and Sovereign Capital have between them completed 15 deals. But we have also seen an uplift in disposal activity for larger owner-managed businesses, encouraged by the attractive capital gains tax regime and often seen as prized targets for International acquirers, as evidenced by the sale of Chilworth Global to DEKRA SE in Germany and the sale of TCC to AFL in the USA. There has been a noticeable increase in appetite for deals within the private equity community, which has acclimatised to the corrections in debt markets. We have been delighted to work with LDC, Palatine, Matrix, Altitude, NVM, Beringea, Rutland, Risk Capital, Alcuin and others, on both platform and bolt-on deals and we were delighted to advise the Business Growth Fund on their first investment, Benefex, which completed in October.


During the year we also supported a number of entrepreneurs through considering how public


markets can assist in the development of their businesses and the most high-profile local example of this was advising on the flotation of Quindell plc.


But we don’t just judge our success by the number and scale of completions. Advising clients not to transact, where the perceived risks outweigh the anticipated returns or where the likely outcome falls short of expectations, is an equally important aspect of our work and vital to our clients and our own long-term success. Whilst it doesn’t lead to gratifying news headlines, we continue to build our business based on thinking and talking straight – placing our clients’ interests at the heart of everything we do and being frank about our views on the merits of a deal.


We believe that the strength of our team across the region, our hands-on director-led approach and the relationships we have established with businesses and funders are all crucial factors that lead clients to turn to us when making strategic decisions in the face of on-going economic uncertainties. Whether our clients are looking to grow organically or by acquisition, realise some or all of their shareholder value, raise development or replacement capital, we never take for granted the trust placed in us to advise them on the best course of action and we seek to work with them every step of the way to help them make good investment decisions.


Time will tell how the euro crisis will be resolved and how the UK economy develops. We hope that 2012 will bring some improved stability to international markets and remove some of the uncertainties that have understandably led to increased deal caution. But, we look forward with some confidence that great advice and support for clients has never been more important across the mid-market and that this will lead to a similarly busy and satisfying year ahead.


Undertook vendor due diligence on


Benefex Holdings Limited, resulting in an investment by


Business Growth Fund DETAILS


Darren Miller Director, lead advisory 023-8064-6501 darren.miller@rsmtenon.com


Steve Brown Director, lead advisory 0118-9530370 steve.brown@rsmtenon.com


Neil Gray Director, lead advisory 023-8064-6401 neil.gray@rsmtenon.com


David Cutts Associate director, lead advisory 0118-9530386 david.cutts@rsmtenon.com


Peter Vandervelde Director, transaction services 023-8064-6508 peter.vandervelde@rsmtenon. com


Rebecca Guerin Director, transaction services 0118-9530369 rebecca.guerin@rsmtenon.com


Nick Williams Director, transaction services 023-8064-6540 nick.williams@rsmtenon.com


David Copley Director, transaction services 023-8064-6688 david.copley@rsmtenon.com


James Killing Associate director, transaction services


0118-9530366 james.killing@rsmtenon.com


Rob Holmes Associate director, transaction services


023-8064-6541 rob.holmes@rsmtenon.com


Quindell


Reporting Accountants on the acquisition of Quindell by Mission Capital and the admission of the enlarged group to AIM


RSM TENON OFFICES Southampton: 023-8064-6464 Bournemouth: 01202-204780 Basingstoke: 01256-312312 Reading: 0118-9530350


Quindell Undertook vendor due diligence on


Benefex Holdings Limited, resulting in an investment by


Business Growth Fund www.businessmag.co.uk THE BUSINESS MAGAZINE – THAMES VALLEY – DECEMBER 11/JANUARY 12


Reporting Accountants on the acquisition of Quindell by Mission Capital and the admission of the enlarged group to AIM


Provided financial due diligence on the


purchase of Tyreland by Micheldever Tyre Services Limited.


Lead adviser to the shareholders of Chilworth Global on the disposal to DEKRA SE


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