Over the course of the last year, we have commented on key M&A topics which business owners should consider.
We have commented on a number of M&A themes over a series of articles. This column summarises these topics.
Timing an exit and dealing with unsolicited acquisition approaches
Owners often delay planning the sale of their company because they are caught up in the dayto-day operational demands, or because they find it difficult to identify that the time is right to exit their business. Planning for an exit is a vital part of ensuring optimal value is achieved and shareholders should obtain professional corporate finance advice if they receive an unsolicited approach from a buyer.
The challenges of Brexit for M&A
Whilst Brexit is having some impact on the M&A market its overall impact remains limited. In most cases, it is business as usual as ambitious shareholders and acquirers remain keen on M&A. Q1 2018 recorded the highest level of M&A on record and although there may be some slow down arising on Brexit, we expect this to be short lived. Cross-border M&A
There is a positive outlook for cross-border M&A activity continuing as overseas trade and private equity funds remain keen to invest in good quality assets. US and European buyer activity in the UK has increased to an all-time high.
Development capital and bolt-on acquisitions
Successful companies often reach a point where they can no longer maintain growth by relying on existing resources and an injection of fresh capital is required to continue growth or pursue acquisition strategies. Acquisitions can often be seen as the most transformational strategy to achieve company growth, and when correctly implemented is unrivalled as a way to rapidly expand your business, diversify into new services and markets.
Private equity and its softer benefits
The region is increasingly recognised by investors as a source of companies with great growth potential, and we have seen very strong interest from private equity investors for a number of North East companies. A significant benefit in securing investment is what a private equity investor can bring to the Board table. The skills, experience and strategic knowledge of the investor can be just as crucial for the business as the cash injection.
As an award-winning corporate finance boutique, Cavu Corporate Finance offers high-quality strategic advice. We have advised a number of regional shareholders and businesses in the recent past including the shareholders of property software business Kykloud on a sale to US-based Accruent, consulting engineers Patrick Parsons on significant development capital investment from LDC, wealth management business Fairstone on the £25m investment from Synova Capital and support services business Fastflow Group on securing significant investment from Elysian Capital. We are differentiated through our strategic M&A approach, our depth of knowledge of private equity and trade buyer markets and our focus on delivering high quality partner led advice.
