Case Studies

RM CORPORATE FINANCE

Preparation for Sale and Company Valuation

A family run company appointed RMCF to conduct a financial analysis of the Company which included the preparation of an Executive Summary and a company valuation.

RMCF was subsequently commissioned to conduct the sale of the business to a third party.

The directors of Orchard Lane (previously known as RM Private Clients Ltd)   then worked along side RMCF to maximise the returns from the proceeds of the company sale.

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Management Buy Out (‘MBO’) – Deal Size (£1.2million)

RMCF acted as the adviser to a private company based in London. It had a turnover of approximately £30m and employs 40 people both in the UK and in Europe.

RMCF worked with the management to put together a coherent business and operational plan that would enable an MBO. RMCF introduced the management team to a number of meetings with interested professional investors.

Then RM Private Clients (RMPC), in support of RMCF, worked closely with the management of the company and conducted a review of their group pension arrangements and a number of other protection issues, as part of the overall service.

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Commercial Risk

Sourced and project managed Commercial risk requirements for an aggregates company sold by a global parent who historically is ‘self-insured’ in respect of Commercial risk.

Responsibilities included:

• Sourcing the appropriate provider with a capacity to deal with global issues
• Compiled risk management and implementation profile to satisfy re-assurers that the new management is fully appreciative of what is required moving forward
• Distilling the relevant areas of risk and determining appropriate ‘deductibles’ levels
• Negotiation of annual management fees and levels of service required
• Collation of all relevant information to conduct ‘Red Flag’ Due diligence
• Ensuring ‘deliverables’ were clarified and agreed time tables met

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Development Funding – International Sporting Arena

Commissioned to structure a finance package in respect of a Commercial development project (£46,000,000) and instrumental in gaining 'preferred bidder status' from the council.

To date 22.5 million pounds has been secured through a variety of institutions, and is currently negotiating with a number of Venture Capitalists for up to 8 million pounds.

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Orchard Lane Ltd (Previously RM Private Clients Ltd)

Director’s Benefits Review

The review of successful IT Company’s Directors Occupational Pension scheme. Their current contract is onerous in terms of ongoing charges, and due to the prevailing investment climate is proving detrimental to the value of their funds.

RM Private Clients has been able to offer an alternative which will both reduce the financial impact of moving funds from one Insurance provider to another through a series of negotiated incentives, at the same time achieving an ongoing transparent charging structure and affording the board the flexibility to adjust premium levels as and when required without being penalised.

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Corporate Protection

RM Private Clients was commissioned to quantify and coordinate ‘key man’ assurance for £20 million pounds required under a de-merger and subsequent re-financing. Despite the prevailing lack of ‘capacity’. RMPC was able to secure this amount over several providers.

On sourcing this ‘capacity’ RMPC is now expected to coordinate all manner of underwriting requirements apart from the obvious medical implications; amounts of this size also require sound commercial reasons why this level of cover is required.

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Specialist Pension Planning - Case 1

Successful property developer seeking to ring fence his assets for retirement. RMPC was able to devise a structure whereby a specialist pension scheme could be utilised to purchase both residential and commercial property.

Specialist Pension Planning - Case 2

Currently advising on the acquisition of a nursing home through self invested personal pensions for the benefit of a husband and wife team. The 25% deposit required by the pension scheme was made up from the transfer benefits from a superannuation scheme which included the use of pre and post 97 rights, along with pension contributions in respect of profits from the partnership. The husband & wife have recently established a Ltd Company which will then lease the property from the pension fund. RMCF was responsible for raising the funds required; RMPC will advise the company on property acquisition through the pension scheme.

In addition, RMCF has liased with the lender's Treasury Department with regard to the swap market to obtain advantageous fixed term rates in respect of the borrowing.

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