search.noResults

search.searching

dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
corporate finance


Sector Spotlight: business services writes Fardeen Nariman, director, corporate finance


Background


The business services sector is a significant contributor to the UK economy, accounting for approximately 10% of gross domestic product and employing roughly 3.3 million people.


Despite prevailing headwinds, the sector has witnessed robust growth over the last decade.


Outlook


Market uncertainty is driving businesses in this sector to reduce organisational complexity and create flexible, scalable operating models that are capable of swiftly responding to new market opportunities at lower costs. In addition, emerging technologies such as artificial intelligence are enabling this sector to transform their clients’ operations in terms of staff engagement as well as experience.


The ensuing demand is driving investment to refocus the sector and develop solutions to deliver services to organisations with smaller employee bases. It is also driving mergers and acquisitions, as corporates would rather acquire than develop solutions due to the rapid pace of change. We see growth via this consolidation and the continued provision


of private-sector skills into the public sector to drive down costs.


So, what does this mean for business services?


Those businesses unable to embrace change quickly enough may find themselves with insurmountable challenges. In ancillary sectors like facilities management, we continue to see smaller operators and the carve-outs of in-house services as transactional opportunities. For larger businesses, this might not only reduce the future ongoing costs but also generate capital for investment elsewhere.


Some of our recent successes


Having successfully completed a variety of deals in this sector, the corporate finance team at Quantuma are in an ideal position to help you understand the market and achieve your ambitions. We can work with you to identify acquisition targets, support you in raising funds, or help you if you are looking to exit and maximise your returns.


If you or a client are an ambitious, entrepreneurial business looking to explore


Following a new ethos


Julian Carr and Brian Phillips set up Ethos Partners as an innovative private investment office to invest their own capital and to invite their growing network of high-net-worth investors to invest alongside them


After 25 years in the UK private equity industry, it was apparent to them that their PE investment returns had been significantly (and consistently) higher than those from their personal pension and other investments in quoted markets during the period.


Ethos focuses on smaller private equity opportunities (£3 million - £10m of equity), where Carr and Phillips see an opportunity to generate attractive returns by leveraging their networks and helping shape the strategy of investee companies. “When we observe other listed and unquoted asset classes, domestic and global, we struggle to identify any which are likely to generate comparable returns; particularly when assisted by investor relief tax rates at 10%”, says Carr.


Carr and Phillips aim to combine the versatility of a private office with the professionalism of the established private equity institutions where they learned their trade (LDC, Hg Capital, Bridgepoint, and L&G Ventures) and have built up a professional team of five investment staff from disciplines including strategy consulting, accounting, investment banking and technology.


THE BUSINESS MAGAZINE – MAY/JUNE 2019


growth opportunities in this sector we would be delighted to share our expertise and experiences with you.


Fardeen Nariman 07500 372070


fardeen.nariman@quantuma.com quantuma.com


Julian Carr


Ethos’ portfolio of assets includes Nu-Heat (specialist supplier of underfloor heating systems) and TeamSport (largest operator of indoor go-kart tracks in the UK). Its most recent investment – the buyout of Bracknell-based Miles 33 (media software business) – was voted Mid-Range Deal of the Year at the recent 2019 Thames Valley Deals Awards by a room of 350 industry peers.


Ethos aims to complete three deals per annum as it grows its network of high-net-


Brian Phillips


worth investors and is currently in the due diligence and fundraising stage on its latest investment.


investor.relations@ethospio.com ethospio.com


Ethos Partners LLP is authorised and regulated by the Financial Conduct Authority (FCA) (No. 813812)


businessmag.co.uk 41


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  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68