SKS Group and sister Business Advisory firm SKSi have joined forces with Primary Finance Group (PFG) to create a one-stop approach for growth companies or companies consolidating as a result of the pandemic. Together we bring accounting, corporate structuring and funding experience to provide a unique and cost-effective perspective to strategic planning during these times of opportunity and uncertainty.
Three typical client scenarios are highlighted below. If you are experiencing any of these issues, are planning for growth or are currently consolidating, then call us for a confidential discussion to see how we can help.
- Mergers & Acquisitions – Management Buyouts & Management Buy in’s
- Growth Finance: the right finance structure and right funders
- Restructuring & Turnaround including Prepacks and CVA’s: complete lifecycle expertise
SKS Business Services offer a complete accounting and advisory service and, with this new non-exclusive agreement can also provide clients with direct access to Finance Group PFG who provide a range of finance options for business development, mergers & acquisitions, and debt refinancing using the expertise of SKSi to ensure the best outcome.
Mergers & Acquisitions – Management Buyouts & Management Buy in’s
- Raising the right debt finance can be critical during the deal making process.
- Alignment across the key stakeholders and funder relationship is key.
- There are several routes to exit and facility structures, security and pricing can vary dramatically across the differing routes. Selecting the right financial partner is of paramount importance.
- Management buy-outs (MBOs) are a popular way for outgoing shareholders to maintain an element of continuity, and lenders take much comfort from the ongoing synergies.
- On the flipside, management buy-ins (MBIs) are considered higher risk by lenders, and often require a physical cash investment from the incoming management team to underpin their commitment.
- Trade buyers and Private Equity often seek swift deal execution to reduce competitive tension and deal creep, debt finance can be an effective tool to support this.
- The UK market is quite liquid currently through a broad mix of asset backed lenders, cashflow lenders and the ever-growing mix of debt funds.
- PFG maintains close relationships across the debt market at both senior management and Board level, often providing direct access to the lender’s credit function.
- SKS provides the full Corporate Finance service including company valuations to guide you through this process.
- As we enter a post pandemic era, and supply chains look to re-energise, securing suitable finance for growth can be a challenge.
- Whether it’s capex to enhance product or service quality and/or quantity, or investment into your people to drive change from within, access to sufficient cash ensures the confidence to commit.
- What if a large contract/order is just around the corner, does the business have the resource and cashflow fire power to meet the obligations?
- And what if that large order is from a foreign buyer, or requires pre-manufacturing deposits and pre-shipment funding?
- Does the business feel exposed to commit to such an order without sufficient liquidity and protection against the possibility of buyer default?
- PFG has extensive reach into debt providers offering finance against hard and soft assets, along with purchase order and contract funding.
- SKS provides comprehensive but affordable modelling for funding as well as management accounts and cash flow forecasting
Restructuring & Turnaround including Prepacks and CVA’s
SKSi are experts in advising companies on the most effective strategy for dealing with a challenging financial situation – something that has become necessary with all the challenges that Covid 19 has caused.
- When any business is experiencing a period of financial instability, implementing a turnaround plan enables UK funders to make informed decisions.
- Nobody has a crystal ball, but with sound assumptions based on previous trading figures and a sensible set of projections that have been “tested“ by SKSi, there are a variety of lenders keen to support.
- Historically, this is where we see the balance sheet assets come very much into play, namely the receivables, and fixed assets including P&M and property.
- Other assets such as the inventory, soft assets and intellectual property tend to play a lesser part, but mustn’t be discounted as may form a crucial part of the business.
- In challenging situations like these, the responsibility lies with the Directors and/or shareholders to drive necessary change, and win the support of the lender.
- PFG and SKSi would work together and alongside each key stakeholder to achieve the best possible outcome for all parties.
SKSi (a part of the SKS Group) is a specialist business advisory firm offering Mediation for Business, Business Recovery, Business Restructuring, liaison with Creditors & Investors and Personal Insolvency.
Primary Finance Group is an independent arranger of debt finance solutions for businesses ranging from SMEs to large corporate organisations. PFG work with companies across most sectors and with a variety of requirements; from those looking to enhance cashflow, build and grow their business, including via acquisition/management buy-ins or management buy-outs, through to turnaround situations including prepacks and CVAs. PFG are an Asset Based Lending and company debt specialist.
We are extremely pleased to have this close working relationship with Primary Finance and would like to reassure our clients (and potential clients) that we also work with other finance brokers and will always look for the best solution whomever is the provider of that finance.