Corporate Finance and M&A Team March Newsletter

Hello everyone, 

We are excited to share the latest updates from the Corporate Finance team as we navigate an active and dynamic market. With a strong start to the year, we have successfully completed key transactions and continue to support clients in an evolving financial landscape. Below, you’ll find highlights of our recent achievements, insights into market trends, and a technical spotlight on EMI schemes for succession planning. 

Your engagement and collaboration remain vital to our continued success—let’s keep the momentum going! 

UK Base Rate 4.5% 

As of April 3, 2025, the Bank of England’s base rate stood at 4.5%, following a quarter-point reduction in February 2025.  

This stable base rate is a critical consideration for our clients, as it influences funding structures, valuations, and transaction strategies. We are closely monitoring potential movements and their impact on these areas. If you have any concerns or require insights on how this may affect your clients, please reach out. 

So, if you have a client that has recently got any type of business loan in the past 2-3 years, then we could potentially help find a CHEAPER alternative through our contacts! 

Latest Completed Deals 

• • Universal Site Supplies – MBO – Initially, USS approached Affinia to conduct a valuation of the company to facilitate negotiations between the shareholders around one party exiting. Affinia subsequently assisted the two shareholders who wished to remain in the business by structuring a transaction that catered to the needs of all parties. 
  • Environtec Private Equity Sale to Obsequio Group – Our team assisted with the calculation of net working capital, tax structuring, and negotiating the sale price. As a result of this deal, three of Environtec’s existing shareholders will remain with the company, while a fourth will step down. 
  • Bond Radar sale to 9fin – Having acted for the client for a number of years, Affinia was approached to support with the sale of the company: to assist with the due diligence phase of the transaction, negotiate a fair working capital target with the buyer, and provide tax advice to establish an optimal tax structure for the seller. 
  • Project Cover – MBO – Affinia was initially approached to assist the owners with a management buy-out. We conducted a valuation of the company and collaborated closely with the client and their legal team on the share purchase agreement. We also helped to structure the deal in the most tax-efficient manner and provided comprehensive estate planning advice.   

These successes reflect our team’s expertise and dedication in driving value for our clients. 

Technical Insight: EMI and Succession Planning 

Enterprise Management Incentive (EMI) schemes remain a powerful tool in succession planning, particularly for SME owners looking to transition their businesses. By granting tax-advantaged share options to key employees, business owners can: 

• • Retain and incentivise crucial management teams.
  • Facilitate a gradual ownership transition while maintaining business stability. 
  • Optimise tax efficiency for both employers and employees. 

If you or your clients are considering succession strategies, EMI schemes could be a valuable mechanism to explore. Please get in touch to discuss how these could be tailored to specific business needs. 

A huge thank you to everyone for your continued support. If you have any questions or would like to explore potential opportunities, please reach out to any member of the team. 

Best Regards, 

Affinia Corporate Finance & M&A Team