Corporate finance

The following case studies are just a small sample of the corporate finance assignments recently handled by Christie Griffith.

Business strategy and planning

Our client's business interests were wide ranging and included farms, care homes, a hotel and property development. The funding arrangements were complex and included four banks who in total were owed about £36 million. Overall the business was asset rich and made profits but had poor cash flow.

The client's business strategy was to reduce debt through a process of asset realisations and improved profitability. We translated the strategy into a detailed business plan and financial projections.

The plan has enabled a complex, multi banked business to monitor the implementation of its strategy and thereby assist the stakeholders in monitoring their individual positions.

Acquisition support and raising finance

Our client is a Scottish based business who had negotiated in principal to buy a £100 million turnover business in North England for a price of about £15 million. Our role was to take the steps necessary to raise the acquisition finance and advise generally on deal management We worked closely with management and prospective bankers to implement the deal which was duly delivered and is now generating excellent profits for the enlarged group.

We have been involved in a number of other finance raising cases - comprising management buy outs, technology companies and finance for expansion.

Due diligence

Our client was a bank who had offered to finance a management buy out subject to due diligence only. We were instructed and commenced work on the assignment 3 days later.

Our evaluation indicated that there were a number of significant errors in the financial projections. We worked with the bank's prospective customer to resolve these while ensuring that we kept to the deal time-table.

This assignment underlined our commitment to be constructive in resolving issues arising during the due diligence process.

Diligence

We regularly act on behalf of banks and investors to carry out financial due diligence.  Here are some examples of the work that we have done.

Investor due diligence

We were acting for two venture capital houses that were investing £4million in an early stage technology company in the oil and gas sector.  The acquisition vehicle was set-up to facilitate a management-buy-in with capital for expansion and the target company had been trading as a start-up for several years.  The deal was to be completed in less than 4 weeks and we provided financial due diligence on the target and acquisition vehicle.

Bank due diligence

We were asked to carry out due diligence by a bank on an existing customer prior to providing substantial new lending.  The customer had a retail operation across more than 10 sites.  The initial investigation revealed several anomalies in the accounts and subsequent work showed that the largest stores were unprofitable.  Most damaging was a huge write-down in stock which turned a stated profit into a massive loss.  The bank declined to provide the new lending.