Member News
RG Corporate Finance (RGCF) has bucked the trend of the summer being a traditionally quiet period for M&A transactions, having completed a number of transactions in July, with August on course to be equally as active.
The Newcastle-based, nationally focussed CF boutique, which also announced the opening of a Yorkshire office in York this month, is continuing to experience strong demand for its M&A and advisory services because of its knowledge in key industry sectors, the expertise of its growing team and its nurtured long-term relationships with clients, including shareholders of privately owned businesses, PE houses, debt funds and tertiary lenders.
In addition, market conditions in high growth, fragmented sectors including energy & renewables, professional services, technology, human capital, healthcare and industrials, are generating opportunities for acquisitions, disposals, MBOs, MBIs, the creation of Employee Ownership Trusts (EOTs) and the need to secure growth or development capital.
These completed transactions included TXM Group’s high profile acquisition of c.£80m turnover, Petroplan. A leading resourcing and consultancy organisation serving sectors including engineering, healthcare and technology, TXM Group identified Petroplan, which is a global energy and renewables staffing agency, as a route into the international energy recruitment market.
RGCF continues to be highly active in these sectors advising on a series of transactions, including a trio of deals in one week during July, and with a positive pipeline for the remainder of the year.
RGCF continues to build highly collaborative relationships with clients, which support their ongoing growth strategies. This is exemplified by its work with North East-based engineering business, Fairley Gunn Group. In July the group acquired X-ray technology specialist Axi-Tek Ltd and its wholly owned subsidiary Metrix NDT Ltd, which was the group’s fourth acquisition in as many years.
Fairley Gunn Group aims to continue its organic and acquisitive growth, whilst securing additional growth capital in a fundraise, which will be led by RGCF.
Completing the transactions that took place in July was the significant investment into North East outdoor advertising, media and communications specialist, Smart Media Group, by M Core Ventures, which is part of M Core. This strategic investment will empower the group to accelerate its growth trajectory and expand its market presence, throughout the UK and Europe.
Carl Swansbury, Partner and Head of Corporate Finance at RGCF, said: “RGCF continues to perform well, even during the summer months, which for some is a flat time of year for transactions. We are building a talented team of CF professionals, including M&A, strategy, transactional tax and financial and tax DD specialists, which now stands at 28, with sectorial and deal type expertise which enables us to advise on all types of transactions within the lower mid market.
“There is a strong correlation between our application of advisory expertise and in-depth knowledge of industry sectors, combined with the improvement in some areas of the economy. The general election will bring a greater degree of certainty now we know who our government is for the coming few years, which one must hope will contribute a certain degree of a confidence boost for businesses and M&A activity.
“However, we don’t know what elements of taxation the government will revisit, such as Capital Gains Tax, which may impact M&A, if the main rate of Capital Gains Tax increases from 20%, and Business Asset Disposal Relief, the old Entrepreneurs’ Relief, which enables sellers to pay a reduced CGT rate of 10% on the first £1m of sale proceeds, is tapered back, or removed. We believe that any advance notice by the new government of a proposed increase in CGT will lead to an initial surge in M&A activity as shareholders will have a short window of opportunity to take advantage of the current rate.”
He added: “As a CF boutique with a significant client base and network across the North East, Yorkshire and London, we are well placed to deliver on a growing pipeline of transactions throughout the summer and beyond. Much of these come from long-term relationships with clients that have been built over time as we advise on their growth and development, whether that includes securing PE investment, debt financing, making acquisitions or potentially a disposal.”
