Additional Services Overview

We can assist businesses in areas such as simplifying a complex corporate structure, business disposal and acquisition, raising finance, negotiating shareholder agreements or identifying potential fraud.

Acquisitions

THA Advisory’s corporate finance specialists are recognized as one of the industry leading teams, with strong expertise in acquisitions. We use our market knowledge and commercial expertise to identify targets and execute deals for companies ranging from owner-managed businesses right through to large corporations.

The proof of a successful merger or acquisition is when value can be seen on both sides, and this is a key consideration when we establish target criteria. Acquiring a target which can also profit from joining the client business makes acquisitions more economically viable, while buying attributes that are already in place may not make economic sense. We also strongly recommend that culture and personalities are considered, with a view to post-acquisition integration.

THA Advisory’s extensive international market knowledge offers a further reason for clients to come on board with us: simply sifting through the acquisition opportunities that are being marketed by other advisors and brokers will only give access to a small portion of potential targets, and the process may become competitive. We prefer to take a proactive approach to research off-market opportunities to help find the right target at the right price.

Once a deal has been agreed we have all the necessary in-house resources to take care of business planning and financial modelling if required. We can also assist in finding financial backers for our clients, thanks to the close relationships we have with a wide variety of acquisition funders. Our full service offering – from target identification through funding to extensive due diligence and completion – is a compelling proposition for any company considering making an acquisition.

Finance

THA’s Advisory corporate finance team source funding for businesses of all kinds: our extensive knowledge of the global funding market can unlock business potential that might otherwise remain hard or impossible to access.

Whether the requirement is to boost working capital to maintain trading activities or to raise finance for an acquisition, it is essential to have access to a wide range of potential funding sources and understand how to use them to best effect. Working with THA Advisory will bring you this access and understanding.

We are also expert in producing and critically reviewing the detailed business plans and financial projections that are needed to source development capital.

Once a funding requirement has been recognised and analysed, we work with our clients to navigate the funding market to find the most appropriate and efficient source. In many cases, asset-backed or cash flow lending will be available and effective, but for others, business angels, venture capital or private equity may prove to be the better way forward.

We maintain comprehensive in-house databases of funders and investors, which help us to match our clients with sources of funding to meet their needs and we ensure that these deals satisfy the requirements of all parties.

Management buy-out/mangement buy-in

Management Buy-Ins (MBI) and Management Buy-Outs (MBO) both involve the purchase of an existing company by a management team who propose to operate the business post-completion. The difference between them lies in the status of the buyer prior to the purchase taking place.

• Management Buy-Out
  An MBO involves a purchase by individuals who already work for the company; this is typically the existing management team joining together in order to facilitate the purchase. This has clear advantages, as the new management team are already familiar with the company, therefore eliminating a learning curve and significantly reducing the transition period following the departure of the existing owner. An MBO is a common exit strategy for large corporations wishing to shed divisions that are no longer central to their future business plans. It is also a common tactic employed when the owner(s) of a business seeks retirement. A possible pitfall with an MBO is that the existing management team might lack the ‘fresh ideas’ that new management could bring.

• Management Buy-In
  This involves a purchase from outside of the company, so it will be a completely new team taking on the ownership and management of the business. An MBI is seen as a riskier proposition by funders than an MBO as there will be a learning curve for the incoming management team to negotiate when they take control of the business. This perceived risk could affect their ability to secure the funding needed to facilitate such a purchase.

• Management Buy-Out/Buy-In
  This is a combination of the two strategies and potentially addresses some of the possible weaknesses of either an MBO or MBI. If the proposed management team does not possess all the strengths and attributes needed, perhaps as a result of the loss of the exiting shareholder(s), then a Buy-In Management Buy-Out (BIMBO) might be a suitable alternative, with incoming members of the management team ensuring a more rounded team is in place. This approach is often more attractive to funders.