LB Corporate Finance Newsletter – September 23

It has been a busy time for LB Corporate Finance, over the past year assisting with a large number of buy and sell side transactions, valuations, forecasts and much more…

I’m sure some of you may have seen myself and Stuart doing the rounds of all the offices over the past couple of weeks to help give all of you a better understanding of the type of work that we do, triggers to pick up Corporate finance referrals and when to contact us… (In particular, Valuations!!!), no more stabs in the dark on these – just pick up the phone and call us!

As mentioned on our visits, it’s key that we bring up succession planning as soon as possible to our clients, and the key to doing this is:

• Asking the client about their business and their future plans, as we can assist them, we a strategic plan which would cover a number of aspects of corporate finance
• These conversations can be at a year end meeting, a client visit, a phone call, or anytime someone at any level is speaking to the client.

And the key triggers to look out for and then contact us is when the client mentions any of the following and ideally we are made aware of these opportunities as soon as possible:

• Growth –If the client is looking to growth this could lead to a lot of work for us as could be:
  • Growth by acquisition – we could help our clients identify targets.
  • EMI scheme – lock in the key member of staff.
  • Forecast – might need to do a cash flow forecast for this.
  • Funding – Do they need funding to achieve their growth plans
  • Then finally, use Clarity for these.
• Retirement – again numerous different works for us:
  • Sell side mandate – help the client sell their business.
  • Valuation work.
• Funding. (Current UK Base Rate is 5.25%). When preparing accounts and working with clients if we see interest rates on existing debt looks high, or the debt is not suitable for the client in terms of there being cashflow issue, or not suitable for their growth plans or is up for renewal then let us now.
• If the interest clients are paying across the different types of facilities is greater than the following please contact us to see if there is a better product for them.
  • Invoice Finance loan – above 3% plus base
  • Business loan –9%+
  • Commercial mortgages – 9%+
  • Vehicle finance/Asset finance – This changes a lot dependent on the asset but anything above 9%

Matt Barnett