Corporate Finance
3 Definitions
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Raising loans, issuing shares, acquisition or merger with other businesses, mbo, by public or private companies.
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The branch of economics concerned with how firms raise capital and the consequences of alternative methods of raising capital.
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The financial activities of a corporation.
Traditionally the domain of traditional investment bankers, today's UK corporate finance sector also has active participants from commercial banking, entrepreneurs in venture capital and governmental agencies seeking to entice corporations to relocate or expand in their areas. Driven by the internet sales of initial public offerings the older rules of conventional methods of securities distribution, investment banking, merger & acquisition have been rewritten.
Pre-eminent UK corporate finance companies including: HSBC; Alliance and Leicester; Barclays; Close Brothers and Lloyds TSB to name a small number can deliver the sophisticated legal and business expertise needed to undertake the process of a corporate merger or acquisition.
Whatever your circumstances, a professional Corporate Finance provider should have the resources to draw together a seasoned team of professionals, united in the aim of helping you to develop and pursue your strategic and transactional objectives. Delivering extensive knowledge and experience helping to make a difference in your transaction.
Whatever the type of transaction or nature of your corporate finance concerns, it is possible to achieve your stated M&A objectives by assessing the benefits and risks, and closing transactions with the creativity, flexibility and timeliness required in today’s competitive marketplace.
All types of company can undertake an aggressive merger and acquisition strategy: Public and private companies ranging from entrepreneurial start-ups, family owned businesses, to mature multinational corporations operating in virtually every industry and service sector.
The UK MBO market has grown in value, with its strongest quarterly performance recorded since the second quarter of 2001. Venture capitalists and management teams are taking advantage of the downturn in general trading to their advantage. Fewer trade buyers in the market to acquire businesses means that price expectations are a little lower than they have been.
According to figures from the Centre for Management Buy-Out Research at Nottingham University Business School, 314 MBO's were completed in the first half of 2004 - the equivalent of 12 a week - at a total value of £7.6bn.
- Want to buy the business?
- Can you run it better?
- Great ideas for future development?
Many MBO case studies will include the drama of tough and tense negotiations, the stress of trying to raise a great deal of money, and a nerve-wracking race to meet a seemingly unachievable deadline!
- A corporation wishes to divest a certain manufacturing plant or other facility
- The owner of a small or medium-sized firm wants out
In both cases the management team running either the facility or company in question can consider going forward with an MBO to take over the business.
Certain transactions undertaken by public companies are regulated by The City Code on Takeovers and Mergers. Whether you are making an offer, or facing a friendly or hostile approach, you require an adviser with traditional merger and acquisition (M&A) skills as well as an in depth knowledge of the City Code.