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Deal Maker of the Year Awards 2013
WINNER - LAKE FALCONER DEAL: Management Buy-Out of Stobbs IP from iPulse
NAME: Lake Falconer COMPANY: PEM Corporate Finance TEL: 01223 728 280 EMAIL: lake@pemcf.com WEBSITE: www.pemcf.com
Stobbs IP Management Buy-Out Originally the trademark division of iPulse, Stobbs IP was acquired in July by Julius Stobbs, who set up the division just three years ago. With clients including O2, Virgin and Tesco, Stobbs IP is already one of the youngest and fastest growing consultancies in its field. The recent buy-out will enable the firm to develop independently and increase its market focus.
Our Role
PEM Corporate Finance acted as advisors on the management buy-out, supporting Julius through a protracted series of negotiations. Despite Stobbs IP’s fast rate of growth and leading status in its field, funding the deal proved to be a challenge due to the lack of liquidity in the banking market for transactions of this type. However, we were able to successfully raise funding with term lending from HSBC using the Enterprise Finance Guarantee Scheme, alongside equity from the management team.
Other Transactions in Autumn 2013 This autumn we have also advised on the sale of Saxon Recycling. Following a competitive process involving a number of interested acquirers, the business was bought by Cleansing Service Group (CSG), a nationwide supplier of waste management services headquartered in Hampshire. Saxon is a strong fit for CSG in terms of services offered and geography.
We have also just closed a deal for the sale of BIO
Lake has more than 20 years of senior level experience in venture capital, as a corporate finance adviser and strategist, and as a manager in industry.
After qualifying as a Chartered Accountant he spent six years in venture capital with 3i plc. He led transactions and managed a portfolio of investments in a variety of industries including technology and life sciences. As a corporate finance adviser, primarily with Ernst & Young, he led transactions including management buy-outs, corporate disposals and start ups. He was a member of Ernst & Young’s national corporate finance technology team.
Completing his perspective on corporate financing and strategy, Lake has been FD of a manufacturing business and CFO of two Cambridge based technology companies. Lake is a fully qualified corporate financier, having been awarded the Corporate Finance Qualification of the Institute of Chartered Accountants for England & Wales (ICAEW) - an award introduced by the Institute to recognise a high level of expertise and experience in corporate finance. He is also a member of the ICAEW corporate finance faculty.
Lake joined PEM in 2004 to establish PEM Corporate Finance. This leading Cambridge based firm works primarily with owner managed businesses in East Anglia, the Home Counties and London, advising on all aspects of corporate finance transactions. Its multidisciplinary team has decades of corporate finance experience between its members, as well as the expertise of its sister company, the award winning accounting and tax practice Peters Elworthy & Moore, to call upon.
a specialist food supplier to one of the UK’s leading fruit processors. This acquisition will allow the buyer to expand and complement its existing offering.
Thoughts for 2014 While funding for deals remains an issue, our recent transactions are proof that funding is available for the right deals. In fact, we’re currently engaged in a private equity development capital financing where we’ve seen strong appetite from the investing community. The overall value of UK deals has risen significantly this year, according to reports by
Experian, and business confidence is starting to recover too. We’ve noticed a good flow of business owner interest in developing plans for selling their business and conducting buyouts, as well as corporate buyers actively seeking strategic acquisitions.
With business owners more confident and buyers active in the market, this is a good opportunity for owners to make a move on selling or passing on their business. It is also important for them to revise what their business is worth, and plan for building value in order to achieve as rewarding an exit as possible.