deals 27
2014: A year of doing deals at Grant Thornton
Looking forward into 2015, Grant Thornton’s corporate finance team is feeling optimistic about what the future holds for the Thames Valley. Following an exceptionally strong run of completed transactions in 2014, when the team completed more than 20 deals, there is a unanimous view across the piste that positive sentiment has returned to the regional economy
Commenting on what has been a highly successful previous year, Duncan Lamb, corporate finance partner says: “We are definitely seeing a continued increase in market confidence from both sellers and buyers alike, with more deals completing and deal pricing steadily creeping up from the previous lull seen during the first three years following the global downturn. 2014 was a great year for us in terms of getting deals done, for both our corporate finance advisory team and our transaction advisory services team, and what is even more assuring is the quality of new projects we are seeing in the pipeline. As it stands today, we would expect 2015 to be considerably better than last year – which is great news for the Thames Valley market. In light of this we have recently boosted our team through the hires of Mark Snaith and Matthew Taverner, as well as the promotion of Paul Stout to director.”
So what has changed? The availability of capital has certainly provided a much needed stimulus to make deals happen, with bank and private equity investors becoming increasingly more interested in supporting acquisitions. Alongside the conventional sources of finance there has also been an emergence of alternative financing options, such as asset-based lenders and alternative debt funds which have sought to fill the void left in the mid-market leverage space. Examples of such transactions are the development capital investment in Companion Care backed by Santander, Maven Capital’s & Mobeus Equity Partner’s backed management buyout of Westway Services and Westbridge Capital’s secondary buyout of bChannels – all of which were led by Grant Thornton’s Thames Valley team.
Combined with significant appetite from overseas buyers (specifically from the US and the Far East), the UK has over the past 18 months developed into a fertile market of potential acquisition targets – demonstrated by the very recent sale of Rolling Luggage, the airport luggage retailer, to Samsonite. In turn this has led to an inevitable increase in acquisitions by UK corporates who are seeking to fend off the threat from new players seeking to enter the market through the acquisition of competitors. There is also a clear appetite for consolidation in specific sectors, as demonstrated by the merger of leading contract caterers Host Catermasters Group, and in the technology asset rental market by Microlease plc’s acquisition of Livingston Group – a deal which was backed by Lloyds Development Capital.
The improvement in investor confidence has also been seen in the quoted markets, with the notable recent listing of Thames Valley-based Gamma Communications plc and Judges Scientific plc’s acquisition of Armfield. Bob Alsop, director in Grant Thornton’s transaction advisory services team, offers his view on market improvements: “The levels of corporate and institutional investment have remained strong over the past year, with our combined corporate finance team having completed a significant number of transactions during this period; however what is particularly encouraging to see is the return of the IPO market, which owners are once again seeing as a viable route to exit.”
Encouragingly a large proportion of the team’s projects have involved a number of Thames Valley based banks, investors and professional advisers, which Duncan Lamb sees as a significant
Duncan Lamb
Wendy Hart
Bob Alsop
advantage to getting deals done. “The importance of working with experienced advisers cannot be underestimated. A large number of our deals have involved lawyers and investors from the Thames Valley, which is extremely positive on a number levels – there really is a genuine benefit to the efficiency of a transaction when working with advisers you have previously dealt with. We are looking forward to continuing this trend and building on our success during 2015.”
Details:
Duncan Lamb 0118-9839612
duncan.lamb@
uk.gt.com
Wendy Hart 01865-799 938
wendy.e.hart@uk.gt.com
Bob Alsop
0118-9839637
bob.alsop@
uk.gt.com
THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2015
www.businessmag.co.uk
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