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CORPORATE FINANCE UPDATE
Autumn 2016
Page 2Transaction highlights
Page 4Our corporate finance team
In the aftermath of the Brexit vote, there has been inevitable uncertainty among UK businesses. However, this has thankfully not translated into reduced corporate deal flow.
We have seen continued fundraising, acquisitions and business sales among small and medium sized businesses. Before the referendum, it was very much business as usual and we advised on a range of deals in the first half of 2016 with notable highlights including the hive-out of PCH Dental in Cornwall from local authority control and the disposal of Farleigh Group (see opposite). Since the end of June, activity levels have actually increased and over the summer we advised on a number of deals including two transactions which have involved in excess of £30m overseas investment in the UK.
We are delighted to have been instrumental in delivering successful transactions for clients across a diverse range of sectors. The backdrop of economic uncertainty could have made this a very unsettling period. However, it has been a hot summer as far as completed deals go and the level of ongoing activity makes us optimistic that the rest of 2016 will hopefully continue at the same temperature.
For further information please contact: James Finnegan, Corporate Finance Partner 03333 219 000 [email protected]
INSIDE:
Page 3Just the Jubb
Reasons for ongoing optimismHigh deal activity continues...
Page 3Great fit for shoe designer
Successful exits for owner managersBishop Fleming’s proud track record of advising business owners on preparation and execution of successful exit strategies has continued this summer.Engineering services group Costain PLC recently announced its £17m acquisition of Simulation Systems Limited, a company based in North Somerset that provides innovative technology based solutions primarily for the highways sector, with Highways England and Transport London amongst its customers.
This followed the sale of a recruitment business in Australia, in June and the sale of The Farleigh Group in May. Farleigh is a Bristol based national provider of financial education and advice services which was acquired by Liverpool based Wealth at Work, backed by Equistone Private Equity.
David Abbott, Corporate Finance Director at Bishop Fleming, commented “We are incredibly pleased to have assisted our clients in their success. Our speciality is to work closely with owner managers to achieve their goals, irrespective of what their business is.”
The latest corporate finance news from Bishop Fleming Chartered Accountants
Transaction highlights
PCH Dental Jubb Simulation Systems
Farleigh Group
Atom Group
Solar Communications
Business Extraction Sector: Healthcare
Advised the management of PCH Dental CIC on the extraction of dental activities from Peninsula
Community Health CIC
Management Buy Out Sector: Engineering
Advised the management team on the buyout.
Business Sale Sector: Technology
Advised the shareholders on the £17m sale of Simulation Systems to
Costain Group PLC
Business Sale Sector: Financial Services
Advised the shareholders on the sale of The Farleigh Group, trading as Affinity Financial Awareness, to
Wealth at Work
Management Buy Out Sector: Support Services
Advised the vendor sharehold-ers in the management buy out of Expolink, backed by private
investors.
Acquisition Sector: Tourism & Leisure
Provided due diligence services on the acquisition of Roseland
Holiday Cottages
AquisitionSector: Technology
Provided due diligence services on the acquisition of CSM3D from
Torielli S.p.A
Acquisition of RDC Sector: Communications
Provided due diligence services on the acquisition of Response Data
Communications Limited
Management Buy Out Sector: Manufacturing
Provided due diligence services in support of the MBO backed by
HSBC
Classic CottagesExpolink
Page 2 Corporate Finance Update from Bishop Fleming
Pathfinder Park Homes
Page 3
Smooth fit for shoe designerBishop Fleming have helped secure the takeover of UK-based CSM3D by the Italian-based Atom group, who are footwear industry leaders in cutting and injection machinery. The UK company develops the well-respected Shoemaster® 3D CAD/CAM system, widely recognised as the leading platform for 3D integrated shoe design and manufacture.
Bishop Fleming carried out the due diligence services needed to ensure the deal could happen.
Under the transaction, CSM3D will become Shoemaster International and work closely with a newly created Italian counterpart to advance technological development in shoe design, and to gain a bigger foot in the industry door for the Shoemaster® software.
According to Giovanni Gaia, President of Atom S.p.A., the deal increases integration between footwear design, product engineering and industrial automation. Having feet in these different camps recognises the fundamental role that 3D design plays in a globally competitive footwear industry.
It will strengthen investment in R&D and extend Atom group’s worldwide service. Corporate Finance Partner, Robert Davey, said: “We were delighted to have assisted Atom in increasing its UK footprint with the acquisition of the South West based CSM3D. The deal was laced with complexity due to the international dimension, but we were able to clear a footpath for it to proceed.”
Just the JubbJubb Consulting Engineers Ltd based in Plymouth, Bristol, Winchester and Cardiff has been acquired by its management team. Jubb is a multi-disciplinary engineering design consultancy with a successful track record spanning over 50 years. Recent years have seen significant investment in its Transport Planning and Ground Engineering capabilities to complement its existing Civil and Structural design offering, enabling the company to service its clients’ requirements at every stage of the development cycle.
The buyout coincides with the acquisition by Jubb of a Winchester based structural design consultants Millerrogers Partnership Ltd, giving Jubb full coverage across the South of the UK.
Existing directors Robert Harrhy and Neil Moorman are joined by new directors Matt Grist and Jonathan Rogers to form the new management team going forward. Charles Tharnthong remains with the business as consultant.
Bishop Fleming advised the new management team on the successful buyout. Corporate Finance Director, Charles Davey, commented: “It has been a pleasure working with this great management team to secure the next stage of Jubb. The company has been trading for over 50 years and the MBO provides a solid platform for the future. With succession planning now high on the agenda of many SME businesses and with funding more widely available, the debt backed MBO remains a credible exit route for many.”
Page 3
All smiles for dental businessBishop Fleming Corporate Finance has provided strategic advice to PCH Dental CIC, the dental arm of Peninsula Community Health, on the separation of the business from the existing group.
PCH Dental was specifically formed and commissioned to provide NHS Primary Care Dental Services to some of Cornwall’s most vulnerable patients. The company provides specialist and emergency dental and orthodontic services, with ninety dentists and support staff in thirteen locations across Cornwall and the Isles of Scilly.
Bishop Fleming advised the Board of Directors on the business transfer agreement with a multidisciplinary team providing strategic, corporate finance, tax, and VAT advice across a broad range of issues.
Paul Critchley, Managing Director at PCH Dental said “In what have been uncertain times for the business, we are absolutely delighted that we have been able to secure the future of dental provision in the county. As a staff-owned community interest company, we remain totally committed to making dental care available to patients; regardless of their age, background, ability and situation.”
Andy Hawkes, Corporate Finance Director at Bishop Fleming said: “We look forward to continuing to work closely with Paul and the team in what is now an exciting development phase for the company.”
David Abbott
Corporate Finance Director
03333 219000
Charles Davey
Corporate Finance Director
03333 219000
James Finnegan
Corporate Finance Partner
03333 219000
Robert Davey
Corporate Finance Partner
03333 219000
Bath: 01225 486300 • Bristol: 0117 9100 250 • Exeter: 01392 448800 • Plymouth: 01752 262611 • Torquay: 01803 291100 • Truro: 01872 275651 • Worcester: 01905 732100
[email protected] • www.bishopfleming.co.ukA member of Kreston International | A global network of independent accounting firms
This newsletter provides an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining
from action as a result of the material can be accepted by the authors or the firm. Bishop Fleming is a trading name of Bishop Fleming LLP, a limited liability partnership registered in England and Wales No. OC391282. Registered office: Stratus House, Emperor Way, Exeter Business
Park, Exeter, Devon, EX1 3QS. A list of members’ names is available at the above address. Copyright © Bishop Fleming LLP 2016. All rights reserved.
Key corporate finance contacts
Bishop Fleming’s corporate finance advisory team have the depth of experience to provide a range of specialist services to suit your needs.
We’re proud to have provided many businesses, from small entities to PLCs, with the full spectrum of corporate finance advisory services.
Our qualified team of corporate finance specialists, accountants and valuation experts provides a professional and creative consultancy service based on many years’ experience in successfully completing the right transactions for our clients. We pride ourselves on listening to your objectives and tailoring our service in your best interests and to suit your needs. Our typical activities include:
• Lead advisory• Management Buy Out• Disposal• Acquisition• Due Diligence• Exit planning• Finance raising and grant services• Strategic advisory services• Strategic board support• Business planning & modelling• Options appraisals• Valuation
In addition to the full range of corporate finance services, our team also has access to specialist teams within Bishop Fleming including tax, VAT and pensions advisory services.
Helping you with your strategic objectives
Ewan McClymont
Grant Services Director
03333 219000
Andy Hawkes
Corporate Finance Director
03333 219000
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