LB Corporate Finance Newsletter – Aug 24

Corporate Finance Guides

The team has recently issued a range of guides designed to assist all staff and clients understand more about the expertise of the Corporate Finance team. with the initial topics being on the following key topics based on what clients typically ask us. Business Valuation – what is my business worth? and Succession Planning – how we can assist with selling your business?

We hope these guides are helping you understand more about what we do and to aid you identify where there are opportunities when working with clients.

Please keep a look out for our next guides coming soon topics TBC.

Interest Rates and Funding

Interest rates have been reduced for the first time in more than four years with the Bank of England reducing its base rate from 5.25% to 5%.

When preparing accounts and collaborating with clients, if we see interest rates on existing debt looks high, or the debt is not suitable for the client in terms of a cashflow issue, or not suitable for their growth plans, or is up for renewal, then please let us know.

For clients’ paying across 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 – 7%+
• Vehicle finance/Asset finance – This changes a lot dependent on the asset but anything above 7%

Succession//Exit Planning//Sale Mandates

With the Rt Hon Rachel Reeves announcing an Autumn Budget will take place on Wednesday, 30th October 2024 and with speculation building around the changes in relation to capital gains tax, this may change some clients plans. It may be that they’re looking to sell their business, orchestrate a management buyout, or in the simplest of cases, they are looking to retire and close their business down.

Ideally, we get the opportunity to speak to these clients as early on in their journey as possible to give them the right steer, so when you speak to clients whether as part of a pre-year-end tax planning meeting, accounts finalisation meeting or a casual chat consider asking them at the opportune time what is their future strategy? If you are not sure about to approach this, please do not hesitate to reach out to the team.

Extra Support

Thank you to Stefan Summerford and Tobi Abolarin for assisting during the month with the growing workload and annual leave commitments.

Referrals

We have had another large month in terms of referrals so far with 15 referrals across all the offices and professional contacts. The nature of the work is also very varied from valuation work to sale mandate opportunities.

Thanks for the support.

Annual Leave

Despite the extremely busy time, Matt and Alex were able to take some pre-booked time off with Matt attending the Euros and Alex playing golf in Scotland with some friends from back in New Zealand, he was able to tick off a bucket list item playing St Andrews (the old course)!