JULY 2011 NEWSLETTER

Welcome to our Summer Newsletter.

The first half of 2011 has been a challenging one for many involved in the SME community. Small businesses are struggling to generate good cashflow and finding it very hard to access new capital from their banks. We see many business owners who are behind with payments to HMRC, most recently corporation tax bills, and finding a less than sympathetic ear from the tax collectors.

Paradoxically, we have an ever increasing network of private investors who are seeking the right opportunities to invest capital. The vast majority of these individuals are self-made entrepreneurs who have exited their core business and have an appetite for backing established trading businesses who have a need for capital.

We’re finding ourselves able to generate significant investor interest for almost all of our clients; holding meetings between clients and investors often within days of being taken on. Over two thirds of our clients receive offers of funding, which is a testament to the quality of our investor network.

The tricky bit, of course, is managing expectations on both sides. Agreeing terms, valuations, keeping DD to an appropriate level, not allowing time to drift and maintaining deal momentum are all obstacles that need careful management.

We’re always keen to talk with business owners who have a need for capital and are comfortable with an equity funding solution. Please don’t hesitate to contact myself or a colleague at any time.

INDUSTRY AWARDS

It’s that time of year again, the cutoff date has now passed and entries have been submitted for this year’s Insolvency & Rescue Awards. 

Now into its fourth year, The Insolvency and Rescue Awards is the biggest event in the insolvency and turnaround industry, where professional excellence and outstanding achievements are recognised.

We are back this year to defend our title as ‘Business Rescue Funder of the Year’. We have also entered a second category to highlight our achievements since the last awards ceremony with our entry for ‘Business Rescue of the Year’.

Finalists are due to be announced in the coming weeks and the awards will be held on 5th October at the Lancaster London Hotel.

Let’s keep our fingers crossed!

BIRTHDAY CELEBRATION

Now into his seventh year with Beer & Young, Senior Associate Michael Morley-Smith celebrated his 65th Birthday this month. Trained as an accountant, Michael has intimate knowledge of small business practice as well as company insolvency rules, and has become one of our in-house technical experts for company turnaround.

Michael is a huge fan of Formula 1 and cricket – we’re looking forward to a day out at the Rose Bowl to see England/India in September.

Congratulations on reaching this milestone. We expect several more years’ effort before we hand over the brass clock!