Tag: Finance

HNH lead advisor in SSAS Solutions sale

Posted on by Rory Moynagh

SSAS Solutions has become part of listed wealth management group Mattioli Woods.

SSAS is a Belfast-based firm specialising in offering business owners tailored retirement schemes. Established in 2009 and now employing 12 staff, it provides pension administration and trustee services to more than 350 small self-administered scheme (SSAS) clients, with approximately £380m of assets under administration.

Director-owner Allison Chambers of SSAS expressed her appreciation of the role HNH played in the deal.

“We were delighted to work with the HNH team, who supported and guided us throughout the process. Their wealth of experience and negotiating skills were paramount in terms of the successful outcome,” she said.

This is the latest deal announcement in a sector for which consolidation has been a key recent theme. A trend that HNH believe will continue throughout 2019 and beyond.

“In recent months, we’ve seen Davy acquiring the former Danske wealth management business, 1825 acquiring BDO’s wealth management business and now Mattioli Woods acquiring SSAS Solutions,” said HNH Directors Richard Moorehead and Wayne Horwood.

“We were honoured to act as lead advisor to Allison and Michael and would be interested to speak with any other business owners in the sector who may be considering their options.”

Mattioli Woods said it will be business as usual for the SSAS Solutions team while it will also be looking to enhance the team as it expands its operations into the region, including the creation of a new administration hub for the group and the development of the existing client offering to include SIPPs (self-invested personal pensions).

“Being part of the Mattioli Woods group provides us with an additional resource and group support to enable the business to grow while still maintaining our strong client values, which also mirror those of Mattioli Woods,” said Allison Chambers and Michael Galway, director-owners of SSAS Solutions.

Mattioli Woods’ group managing director Murray Smith added: “We are thrilled to welcome the SSAS Solutions team into the Mattioli Woods family. A great opportunity to build on the success of an established business in Northern Ireland – where we already have a number of clients – we’ve known Michael and Allison for a number of years and have huge respect for the technical expertise their team offers.

“Their well-regarded skills and knowledge will be a valuable addition to our growing business, serving to further strengthen our services to clients and customers throughout Northern Ireland. We look forward to welcoming them to our expanding team.”

Shortlists revealed for NI Dealmakers Awards

Posted on by Rory Moynagh

HNH features prominently in the 2019 Northern Ireland Dealmakers Awards shortlists.

We have been shortlisted in the Corporate Finance Team of the Year category. Craig Holmes features in the Dealmaker of the Year list. While, we were involved in a number of deals which have also gained prominence – the sale of fscom’s KYC Pro product to PWC, funding for ISL Waste Management Ltd (both feature in Deal of the Year – below £2.5m) and the acquisition of Alumasc Facades by Kilwaughter (Deal of the Year £2.5 – £10m).

HNH Director Richard Moorehead is proud of his team:

“2018 was a fantastic year for HNH’s CF team, which nearly doubled in size from five to nine team members over the course of the year. As well as giving us crucial extra bandwidth, our targeted recruitment has added expertise in financial modelling, transaction services and debt advisory,” he said.

“We completed 15 transactions during 2018, covering a wide range of sectors and transaction types. Having three of our deals (Kilwaughter, FSCom and ISL) shortlisted for deal of the year is testament to the strength of our team and their hard work and dedication.

“2019 has continued in the same vein as 2018.  At the end of last month, we completed the sale of the leading independent foodservice business, Foodco, to Henderson Foodservice and have another four or five deals scheduled to complete before the end of this quarter. ”

The annual NI Dealmakers Awards aim to recognise the high quality professional advisory firms and funders in Northern Ireland and some of the best deals in which they have been involved in over the previous calendar year. All winners will be revealed at the gala dinner event set to take place at the Stormont Hotel in Belfast on 14 March 2019.

Should I stay or should I go?

Posted on by Rory Moynagh

The forthcoming Christmas break is, for many business people, the one time of year they can enjoy a proper break, away from the constant interruptions of emails and deadlines, and spend some quality time with friends and family, reflecting on the year just passed and the challenges that lie ahead.

This period of reflection is often the catalyst for change and we frequently find ourselves spending much of January meeting prospective clients who have expressed a desire to sell their business.

There are a number of valid reasons why someone may come to this decision including:

  • I have taken the business as far as I can.
  • My attitude to risk has changed.
  • The economy/competition/technology is a threat to me.
  • My team doesn’t have the ability to develop the business.
  • I want to capitalise on entrepreneur’s relief while it is still available.
  • Multiples are strong in my sector and I want to get out at or near the top of the market.
  • I had an approach it has got me thinking.
  • I can’t work with my co-shareholders anymore and we need to go our separate ways.
  • Personal reasons such as a health scare or simply a desire to spend more time with family.

A key part of our process is to look beyond the headline reason for the decision and understand the underlying motivation.

We have bad days, or weeks, when work isn’t going well, the pressure is building and it just isn’t enjoyable.

However, for most business owners the decision to sell is a once or twice in a lifetime moment, so it is crucially important that proper consideration is given to the following thoughts:

  • Why now? What has changed in the business or personal circumstances?
  • What position is the business in? Does it need investment, new people, new systems, etc.?
  • What are the alternatives? Can something be changed that would take the pressure off and make work enjoyable again?
  • What could someone else do with the business? Are you selling an opportunity or a risk?
  • What will you do next? Even if the sale of a business yields a life changing amount of money, many sellers soon find themselves bored and seeking a new challenge.

It may sound counter-intuitive coming from a firm that ultimately gets paid when people sell their business, but we would much rather potential clients wait and sell for the right reasons, at the right time, rather than rush into a process which can be time-consuming, emotionally draining and indeed costly.

There is a high correlation between poor planning and aborted transactions; a failed process can linger over a business for years, putting doubt in the minds of employees, investors and potential acquirers.

Once the underlying reasons for wanting to sell are understood, only then should you look at the options, which may include:

  • A trade sale i.e. to another company.
  • A partial exit, achieved through selling a stake in the business to an investor, which would be a private equity fund, HNWI, family office, etc.
  • MBO, MBI or BIMBO.
  • Putting in place an exit readiness plan for a sale in the medium-term.

We will address these options in the weeks ahead, but in the meantime, here’s a link to our first blog in this series, ‘Why is succession planning crucial for your business?‘ .

What should we look for in Thursday’s MPC Announcements and Forecasts?

Posted on by Alison Jones

On Monday, Britain’s manufacturing PMI jumped to 55.5 for October, ahead of analysts’ expectations of 51.3, which is one of the largest rises since the survey began over 20 years ago.

In the wake of a Chinese currency devaluation, continued rise of the dollar and emerging market worries, Mark Carney, Governor of the Bank of England, and Janet Yellen, Chair of the Board of Governors of the Federal Reserve System, have remained focused on the first rate increases, in their respective jurisdictions, since the financial crisis.

Investec Bank and HSBC Holdings Plc are expecting Kristin Forbes to join Ian McCafferty, currently the most hawkish member of the committee, in voting for an immediate rate rise. Martin Weale, who has previously voted for an immediate rate rise, is the other member of the MPC who may join the hawks. However, market makers are currently pricing in the first full rate rise in April 2016, according to Sterling Overnight Index Average (SONIA), which had previously marked the first full rate rise for December 2016 in the aftermath of the recent market correction.

Ross Walker (of Royal Bank of Scotland) noted that the MPC’s communication would be very tricky as they wouldn’t wish to be seen supporting the markets dovish, lower rates, expectations. The most recent focus has been on core inflation figures which have remained close to zero as unemployment has continued to decline and wage inflation, driven by a shortage of skilled workers, are providing policy makers with robust data to support their more positive economic outlook.

Sterling has decreased against the dollar during the oil price collapse and ought to have dampened some of the disinflationary pressure, however, as recently as September, the UK’s Consumer Price Index dropped into negative territory. In the short term a decrease in prices has a positive impact on disposable income. Coupled with increasing wages, this has provided some relief to consumers at the end of the month.

Following the Bank of England’s decision to flood the market with liquidity, via quantitative easing, the MPC now expect to reach their inflation target of 2pc within three years, and this week are due to release the November Inflation Report.

It is worthy of note that Kristin Forbes, has recently said in a speech at the Brighton Summit 2015 that much of the “doom and gloom” surrounding emerging markets had been “overstated” and that recent “news on the international economy” had not changed her expectation that rates would “rise sooner rather than later”. This week also sees the External MPC Unit, (of which Kristin Forbes is a member), submit a discussion paper aimed at improving inflation estimates as sterling reacts to market shocks.

Over the past couple of months the market has been warned by our policy makers that interest rates are going to rise. The Federal Reserve are likely to lead the way in the coming months and the MPC may take confidence from a positive market reaction. Traditionally, The Federal Reserve and The MPC increase or decrease interest rates by 0.25% but there has been long standing communication from both US and UK policy setters that interest rates, when they do begin to rise, they will rise slowly and gradually.

Since becoming Governor of the Bank of England, Mark Carney has attempted to provide clearer communication where it has been possible and as we move into a rate hiking cycle (where interest rate increases of 0.25% bring increased market volatility), we could see smaller incremental increases over a prolonged period of time to allow businesses and individuals greater time to react.