Grant Thornton Beefs Up Corporate Finance Team

Accountancy firm and business adviser Grant Thornton has made three additions to its corporate finance team in the South West.

Corporate Finance News

Paul Short has been appointed as associate director after five years at Grant Thornton’s Reading office. Meanwhile assistant manager Paul Eke, transfers to Grant Thornton’s Bristol-based corporate finance team from a transaction advisory services role and Mark Pope joins the firm at executive level from Smith & Williamson.

Mark Naughton, corporate finance director at Grant Thornton in the South West, said: “Our team advised on several of the region’s most high-profile deals last year.

“We expect the recovery in the region’s transactions market to accelerate in 2011, so Paul, Paul and Mark are joining us at what is an extremely important and exciting time.”

Grant Thornton is a Corporate financial and business adviser. It has 28 offices in the UK.

Corporate Finance Transactions Going Under Microscope

Liquidators of Strategic Finance say they are investigating transactions connecting company directors and third parties and are "progressing pursuit of possible avenues for recovery". The finance company, likely to repay just a fraction of the $360 million it owes investors, is also under investigation by the Securities Commission.

In their latest liquidators' report filed on February 17, John Cregten and Andrew McKay of Corporate Finance said they had "identified a number of transactions which require further investigation" but gave scant information about their progress or chance of getting money for creditors.

It was impossible to say when their job would be complete, they said, "as this will depend on any action the liquidators may take in respect of transactions entered into by the company prior to liquidation".
Mr Cregten told BusinessDay the biggest problem had been collating the volume of documents.

"It just takes time," he said. "In the next six months we should be able to say what progress we've made."
He said the transactions being investigated involved "both directors and third parties".
Strategic's directors are Kerry Finnigan, Jock Hobbs, Graham Jackson, Marc Lindale, Denis Thom and David Wolfenden.

No receipts or payments were made in the liquidation since their appointment last July.The main responsibility for recovering money so far is on receivers John Fisk and Colin McCloy of PricewaterhouseCoopers, who are trying to realise cash from Strategic's property development loans.

Since their appointment last March about $9m has been recovered and $7.4m was paid to investors in September.

The estimated recovery is between 12c and 35c in the dollar, before costs.Last month, receivers said they had identified several transactions between December 2007 and August 2008, when Strategic collapsed, warranting further investigation.One was being investigated by SFL's liquidator and the rest by the receivers, they said.

Blue Sky Corporate Finance advises on Shropshire buyout

Birmingham advisers at Blue Sky Corporate Finance have worked with the organization team in the overthrow of a Shropshire-based software firm for an secret amount.

Occam Systems, which supplies technology used by colleges and universities to manage student lodging, was sold in a business was monetarily backed by a high net-worth individual (Business Angel).
Blue Sky managing director Paul Heaven said it was a complicated deal.
 
He said: “A transaction of this type is made slightly more complicated by the fact that different parties have differing interests in the various legal documents that emerge during the process.
“The financial backer and the management team sit on the same side of the table during the negotiations of the contract to acquire the company but they have a different perspective when it comes to the negotiation of the shareholder agreement.

“In these circumstances it is important that the buy-in management team are properly advised.”
David Wilkes, now managing director of Occam and head of the management buy-in team, said: “A management buy-out is not a transaction that most entrepreneurs encounter every day.

“It’s easy to think that because you know the business you don’t need advice.

“In reality you’re dealing with professional advisers acting for the investor as well as those acting for the seller – your personal needs and those of the business can get pulled in both directions. Having Paul on hand to guide me, provide independent advice, and to review the mass of documents you have to sign was an immense help.

“Particularly in the couple of weeks leading up to completion it meant I could still find time to sell, critical to any business.”

Legal advice to the company during the deal was provided by Harrison Clark Solicitors in Worcester and advice to the vendors was provided by George Green Solicitors of Cradley Heath.

Park District Hires Corporate Finance Director

The Naperville Park District has hired a new CFO. Form Stanish, CPA, who took over last Monday had served as chief financial officer of the Village of Willowbrook for 12 years. She also worked as accounting manager for the city of Naperville from 1993 to 1998.

“Not only does Sue Stanish bring excellent qualifications and experience to the district’s finance department, but she also brings personal knowledge of Naperville,” said Park District Executive Director Ray McGury.

Stanish said she is looking forward to working as part of a team that will be building and maintaining parks and facilities for the community. She will be working with the park board and staff to maintain the district’s excellent bond rating and general financial health.

“My goal will be to keep the same level of professionalism in my department that has been here previously,” she said.

Corporate Finance Advisors Invited To Bid For Northern Rock

City analysts revealed yesterday that the most likely outcome for Northern Rock is a sale, as Edinburgh-based Virgin Money – owned by Sir Richard Branson – makes a prime bid for the group.

UK Financial Investments (UKFI), the organisation that oversees the taxpayers’ holdings in banks, said that corporate finance advisors would be given a fortnight to tender for work. The state-owned Northern Rank was nationalized three years ago at the height of the credit crunch. Since that time, the government has begun to take the first steps to privatize the institution.

Chief executive for the fledgling Virgin Money, Jayne-Anne Gadhia said that she expects to tell MPs she believes that the high street bank faces significant barriers still. Virgin Money announced it would hope to open 70 branches during the next five years, which could be done in one move if it acquires the 75-branch strong Northern Rock.

Other potential buyers for the financial group include NBNK Investments, which hired former Northern Rock boss Gary Hoffman last November. However, with the hire of Mr Hoffman, NBNK cannot bid on Northern Rock until November 2011. Other names include Tesco Bank and private equity company JC Flowers.

UKFI said that it is inviting expressions of interest from all corporate finance advisors that work with Northern Rock and UKFI. Northern Rock was infamously nationalised in February 2008 as customers lined around the block at branches to withdraw their money.

Last year, the Corporate financial institution was split in two as ‘good’ assets were saved under Northern Rock Plc and “bad assets” were moved in Northern Rock (Asset Management).
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Corporate Finance - Arden Boosted By Late Corporate Deals

LONDON (SHARE CAST) - AIM-listed broker Arden Partners has reported a loss for the year to October 2010, but still make an underlying profit in Corporate Finance.

A couple of important fundraising at the end of the period helped increase the income of corporate finance, but secondary income from equity trading fell 29%.

Generally revenues were flat at £13m but there was a sway from a profit of £1.52m to a loss of £512,000. Stripping out share based payments of £1.08m, up from £702,000 the previous year, Arden was profitable. There were also restructuring costs of around £700,000 in the period following the departure of the chief executive Jeremy Grime. The underlying profit was £1.3m, down from £2.2m.

Arden intends to focus its activities on its core areas of the United Kingdom and India. CEO Jonathan Keeling, focusing on the possibility of India. Last month, Arden has raised £ 6,800,000 for Hardy Oil & Gas.
Net cash fell to 9 million pounds in late October 2010, but its financial position remains comfortable. At year end, Arden spent £ 947 000 to buy back shares.

Geithner To Meet With Corporate Finance Chiefs On Tax Reform

The Treasury Department has released the list of companies expected to be represented when Timothy Geithner, the Treasury secretary, discusses tax reform Friday with corporate chief financial officers.

The companies are: Honeywell, Cisco, Johnson & Johnson, Coca-Cola, Emerson, United Technologies Corporation, Wal-Mart, Exxon, PepsiCo, Microsoft, Procter & Gamble, Bank of America, Caterpillar, Disney, Eli Lilly, General Electric, Dow Chemical and MetLife.

The meeting comes as tax reform is getting increased attention around Washington, even as members of both parties acknowledge that overhauling the nation’s tax code would be a difficult undertaking.

Treasury representatives have cautioned that Friday’s event is one in a series of meetings dealing with tax reform and have advised not to read too much into it.

For his part, President Obama has said he wants a “conversation” on the issue this year. And Valerie Jarrett, a senior White House adviser, recently called Friday’s Treasury meeting an opening step in what would most likely be a drawn-out push to overhaul the tax code.

Republicans have also been supportive of considering tax reform. Rep. Dave Camp (R-Mich.), the new chairman of the House Ways and Means Committee, announced Thursday the panel would have the first in a string of hearings on the issue next week.

Corporate Finance Recruitment Planned By HSBC

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According to the lender’s local chief executive,” Europe’s biggest bank, HSBC, plans to complain up its corporate finance business in Australia”. The Bank intends to expand its corporate finance activities in Australia by hiring more bankers to work in his team’s debt capital markets and plans to extend its land acquisition and leveraged loan syndication activities.

ANZ is vowing not to abandon an ambitious strategy for the Asia-Pacific, despite the heavy defeat the most important target area acquisition yet. Shares of the giant bank’s management met yesterday all but ruled out a bidding war for a majority stake in Korea Exchange Bank, ANZ would lead to speculation and ramp up its foray into India.

The corporate regulator is poised to take legal action against some of Australia’s largest banks over the collapse of Storm Financial after a breakdown in compensation talks.

National Australia Bank says it is working to solve the technical problems that delayed the treatment of certain payments from customers and operations during the night.