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TMA update 11 Jan 2012 @PKF
- Deal flow
- Kelso Place did o deals in 2011 – prices were too high.
- RBS did 800 restructuring deals in 2011 – who did them?
- Corporate finance seems to be the leading source of deals not IPs in 2011/2012, with the outlook for insolvency practitioners looking bleak, laying off workers. RBS view – 2013 may be an upturn in insolvencies, as businesses.
- Zombie companies are adversely affecting the competitive landscape often buying some business below cost, artificially screwing pricing.
- RBS Santander deal is expected to be completed Jan 31 2012, to meet the end of 2012 window. If the deal falls through there will be a limited window to find another. Only 5% of commercial is in fact 23pc value of the portfolio, and 318 retail branches – the divestment is complex as its part of the business.
- Buy good business is at the core of turnaround acquisitions – regardless of whether it is in out of an insolvency process, whatever is the best process to retain value and viability. The complexities of buying a business post admin should not be underestimated either.
- Insolvency law / developments;
- 2011 insolvency Begbies led – 243 with 167 KPMG ;
- Case law indications are that pensions may be ongoing liabilities post administration!
- Fairline boats / Better capital JV with RBS is an interesting development
- In 2011 – Prepack made up 27pc of all administrations yet the outcome is 70% of all businesses entering administration were still sold back to their owners! The new 3 days prepack creditor review seems to be on the cards in April!
- Football creditor rule ending will likely make no difference as FA will use own rules to find another way around
- Retail; high St closing 1000 shops week, retail property owners 80pc are in breach of their loan to value covenants
- 30pc premier football clubs have player fees greater their turnover, but foreign owners will likely once again save the entities and they will carry on regardless
- No one offered a view of 2012
- Subsequent news – On the Euro; The Italian Mafia are now the largest Italian bank with €65Bn liquidity.