24 corporate finance
The need for legal advice in a fast-changing market
Confidence in the business arena may be rising steadily, but it is being underpinned by a more cautious approach to spending. At the same time, the return of investment and joint venture activity is seeing increased demand for legal advice across a range of business issues, including the challenge of how to hold on to top level skills
Yavan Brar, partner and head of the corporate and commercial department at law firm Herrington & Carmichael, which has offices in both Wokingham and Camberley, says the improving economy has given companies the green light to press ahead with capital projects.
“From our larger clients, we’re certainly seeing a willingness to start on projects which had previously been put on hold,” he said. “That’s a combination of developing new property and facilities, IT implementations and investment in their supply chain.
'There’s a vast amount of activity taking place at the moment ...'
“However, although there is confidence that the market is recovering, many businesses still carry the scars of the recession when they were more worried about keeping the company going than investing in the future.
“As a result, now things are improving, they are seeking long-term stability in terms of agreements and contracts with suppliers across a range of areas, from IT to raw materials, catering to office space.
“Where once these arrangements would have been more ad hoc, companies now want to ensure prices are fixed for periods of up to 10 years and they are prepared to invest in putting those contracts in place.”
Herrington & Carmichael provides tailored support for businesses across the Thames Valley and the Blackwater Valley, and has a strong team of corporate lawyers, as well as expertise across other boom areas such as property and employment law.
“In terms of growth, work for our corporate team has increased considerably on 12 months ago and as a practice overall we are recruiting to bring in additional resources,” continued Brar.
“There’s a vast amount of activity taking place at the moment and organisations are coming to us for help in areas such
www.businessmag.co.uk
is structuring a business which provides back-office and logistics, as well as fundraising support, to entrepreneurial companies in return for an equity stake.
“These are people who have successfully made their money elsewhere and are now being creative in the way they offer services to other businesses, centralising costs in one area to be more efficient and helping with fundraising,” he said. “It’s something which was quite common in the boom times and the fact the appetite to support entrepreneurs is returning is a great sign of confidence.”
While the increase in business activity is encouraging, demand for strong players is putting the spotlight on employers as they seek to hold on to skilled professionals in a quickly-changing environment.
Whereas previously cash-strapped companies were keen to offer staff equity in a business in order to encourage them to stay, this is increasingly being replaced with bonus payments to retain top performers.
“During tough times two years ago, we were supporting a lot of clients who wanted advice on share schemes to secure key individuals, but as the market comes back, they now want to hold on to that equity because they see future growth and profit returning,” concluded Brar.
Yavan Brar
as joint venture agreements, incentive plans for management teams, service and supplier contracts, and logistics and acquisition support.”
On the investment front, he says the returning mergers and acquisitions market is being boosted by more MBOs in particular, as well as private investors keen to identify potential success stories.
Those who are being more successful in obtaining the funding are, he says, those who have a proven track record. “Before they commit, investors want to know that someone has a good business history and has effectively ‘been there and done that’,” he said. “Those individuals who have already shown they can run a profitable business are finding it relatively easy to fundraise with many schemes being over subscribed.
“However, it is still not as easy for those who lack experience or who are still at the ideas stage to raise funding and very often they are reliant upon the friends and family route.”
The market is also seeing a more creative approach. Another project which Brar’s colleague Alex Canham is working on
THE BUSINESS MAGAZINE – THAMES VALLEY – JUNE 2014
“Instead, we’re seeing a return to more immediate rewards being allocated, although share incentive schemes continue to have their place in securing and attracting talented individuals. We can provide advice and support on putting those new agreements in place.”
The breadth of experience in its corporate team means Herrington & Carmichael is well placed to help clients across a range of issues, while its partnership approach ensures long-term relationships reap rewards all round.
Details: Yavan Brar 0118-9774045
yavan.brar@
herrington-carmichael.com www.herrington-carmichael.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