GAMECHANGERS MAGAZINE TEN / SIXTEEN

Gamechangers TEN / SIXTEEN

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MAGAZINE

Investcorp announces agreement to purchase 3i's debt management business, adding $12 bn to its AUM Executive Chairman of Investcorp,

Mohammed Bin Mahfoodh Al Ardhi Apple introduces iPhone 7 & iPhone 7 Plus The best, most advanced iPhone ever!

P54

What does Brexit mean?

Business as usual?

P63

15 Best Workplaces in Manufacturing and Production P107

Stringed instruments as investments6 P116

CyberspaCe 2025 Today’s deCisions, Tomorrow’s Terrain

Authors David Burt Aaron Kleiner J. Paul Nicholas Kevin Sullivan

N Avig AtiNg the Fut ur e oF Cyberse Curit y P ol iC y

June 2014

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CONTENTS cover

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Investcorp announces agreement to purchase 3i's debt management business, adding $12 bn to its AUM

54

Apple introduces iPhone 7 & iPhone 7 Plus The best, most advanced iPhone ever!

98

5 ways to improve your customer service

GameChangers™ welcomes news and views from its readers. Correspondence should be sent to gamechangers@acq5.com For more information about GameChangers™ visit www.acq5.com/posts/ gamechangers/ GameChangers™ Copyright © 2016 GameChangers™ No part of this magazine may be reproduced, stored in a retrieval system or transmitted in any form without permission.

SAFE HARBOR The interviews in this publication may contain certain forward looking statements with respect to the financial condition, results of operations of the businesses profiled. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements and forecasts. The statements may have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Nothing in these announcements should be construed as a profit forecast.

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"Credit Crunch Kids" raised on lessons in financial responsibility

Avoiding immigration issues in due diligence: lessons to be learnt from byr0n burger

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63

What does Brexit mean?

Business as usual?

107

Stringed instruments as investments?

15 Best Workplaces in Manufacturing and Production

TEAM David Rogan - President & Editor-In-Chief Jon Van Dyke - Editorial Director James Wiltshire - Publisher EDITORIAL J Robson - Editor-At-Large L. B. Kooler - Deputy Editor P Ramone - Senior Editor J LaRusso - Copy Chief M-C Fisher - Editorial Assistant B Sancheze - Senior Staff Writer ADVERTISING A Bott - Digital Advertising Director J Downey - Advertising Director Z Wolfel - Business Development Director C Thomas - Account Executive H Smith - Account Executive ADMINISTRATION A Kessler - Finance & Admin Director T Dolby - Technology Manager P Hughes - Operations Coordinator T. A. Black - Office Manager

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AIM Into ISA - 3 Years On August 5th 2016 marks the three year anniversary since AIM stocks were eligible to be included in ISAs. Graham Spooner, investment research analyst at The Share Centre, comments on current investor appetite and picks three AIM companies for investors to consider: “A matter of weeks ago, the Alternative Investment Market (AIM) was celebrating its 21st birthday. Today marks another milestone for the index as it has been three years since investors were allowed to include AIM companies within their ISAs. This decision was seen as an effort by the government to encourage investment in growing companies.

“There’s no denying that AIM remains popular amongst private clients who are excited by smaller companies and willing to accept a higher level of risk. This is demonstrated by the fact that at The Share Centre and in the month before Brexit, 25% of investments in ISAs were made up of AIM companies*. That is a staggering percentage and likely as a result of investors taking a punt amidst market uncertainty.

“In the four weeks post Brexit, the number of AIM investments in ISAs fell to 17% as investors took action in the immediate aftermath and subsequently contemplated on what the result could mean for their portfolio, likely leading to a lower risk attitude**.

“Attitude to risk is so important, especially in volatile times. The theory is the more risk you are prepared to take, the higher your potential returns. Of course there’s always a chance that you could lose some or all of your money “Now the post-Brexit dust has settled and the markets are showing signs of recovery, it may be an appropriate time to for investors to consider casting their eyes once again over smaller companies.”

Spooner Outlines Three aim Companies On Their "Buy" List For Investors To Consider: Breedon Aggregates “Breedon provides various aggregates to the construction and building industry and so it is likely to be a direct beneficiary of increased infrastructure spending, which the group are expecting to grow strongly through to 2018. Recent acquisitions should help the company expand its geographical presence in the UK and investors should appreciate that management expect a significant and improving contribution to come from these acquisitions. Breedon Aggregates is a smaller AIM listed company that is geared to a recovery in infrastructure spend and for higher risk investors prepared to take a longer term view.”

Finsbury Food “The group is the producer of a wide range of baked goods for supermarkets, wholesalers, caterers and restaurants. This diversity gives the company exposure to potential growth in a number of key areas.

Finsbury Food is now seeing strong

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benefits of the recent acquisitions beginning to flow through and its restructuring has enabled it to reduce production costs and lower debt levels substantially. Due to the potential from the recent acquisitions, its diverse customer base, good relative value and the helpful underlying economic picture of rising wages and low inflation, we believe Finsbury Food is suitable for higher risk investors, seeking growth.”

OPG “OPG Power Ventures is a small company that operates medium sized coal-fired power plants in India, and we believe it is an interesting stock choice for investors seeking growth within their portfolio. With the country’s demand for power in excess of supply, the group’s management are confident that its expanding operations will benefit from this and lead to further growth opportunities.

Potential investors will appreciate that the group’s results continue to highlight the progress it has made over the last year. Bright prospects, including the Indian government’s desire to have reliable power as a foundation for social, industrial and economic growth, make this a choice for investors looking for an overseas AIM company geared to economic growth in India.”

“Always ensure you are comfortable

with the risk being taken and if needed, realign and appraise your objectives.”

Ayondo Group Launches Educational Mobile App "Ayondo Academy" • FinTech and Social Trading Pioneer expands its mobile product range to attract a new client base via educational mobile applications • First product created by the group’s recently established Mobile Lab based in Singapore Financial technology group ayondo has launched a new mobile app, the ayondo academy, targeting investors who want to experiment and learn in a simulated trading environment.

The ayondo academy, created by the group’s Mobile Lab in Singapore, allows users to trade virtual stocks, participate in trading competitions and learn about the latest news and tips within the app.

“The ayondo academy app was built to educate and empower our future

BRIEF clients. It enables them to view the capital markets as a viable investment opportunity that they can confidently partake in while understanding the risks by providing them with a playground that is educational, fun, and free”, said Raza Perez Head of Product at ayondo group.

The app draws real-time data from 35 stock exchanges, 45,186 global securities, 14 currency pairs, 10 index and 2,030 CFDs. Users start with $100,000 in virtual capital and can make trades to create their own virtual portfolio. The app’s leaderboards identify the most successful traders (known as “Heroes) by their returns, and they are ranked by territory, monthly or quarterly returns, as well as overall returns.

By watching the top traders and viewing what they are trading in real time, participants can then leverage what they learn from these experts and apply it to their own investment portfolio. There is also a virtual trading competition component in the app where users can compete with traders to win prizes. The app is currently available on the Apple iTunes App Store, while an Android version is soon to come.

According to Dominic Morris, Singapore Team Leader, “the ayondo academy is a platform that brings together a global community of financial traders to participate and learn from one another on the basics Wof trading in the financial markets risk free.”

The launch of the new app is part of the ayondo group’s strategy for expansion and brand awareness by growing the existing business with new developments in mobile technology. The first country to launch the app is Spain. A further expansion into other markets is planned in the near future.

Financial technology group ayondo is currently working on a Reverse Takeover (RTO) transaction. ayondo is aiming to be the first FinTech company to be listed on the Singapore Exchange (SGX).

BBQ Chain Launches Uk's First Burger for Dogs Bow Wow Burger celebrates National Burger Day and National Dog Day Dog friendly restaurant chain, Porky’s BBQ, has created London’s first burger for dogs – in partnership with their friends at Murphy’s Bakery.

Available exclusively at Porky’s BBQ restaurants, the new addition to the menu will be served to celebrate National Burger Day on August 25th and National Dog Day on August 26th.

Crouch End, Chelsea, Bankside and Camden, all of which will be offering the exclusive Bow Bow Burger to all doggy pals arriving with their human owners on both dates. People are calling it a bark-be-que revolution.

The Bow Wow Burger itself was developed in partnership with homemade dog treat specialists Murphy’s Bakery. They are wheat and gluten free, as well having no additives, preservatives, salt, sugar or artificial colourings.

National Burger Day, August 25th, is an initiative setup by Shortlist magazine’s alter ego, Mr Hyde, encouraging participating restaurants to offer 20% off all burgers on Thursday 25th August. All of the Porky’s BBQ sites will be offering this, in addition to a special Memphis Burger to celebrate the day. This beast will stack up with two patties, onions rings, pulled pork, pickles, bacon, hot sauce and jalapeños.

National Dog Day, August 26th, is set to be the biggest yet. It helps galvanize the public to recognize the number of dogs that need to be rescued each year, either from public shelters, rescues and pure breed rescues. National Dog Day honors family dogs and dogs that work selflessly to save lives, keep us safe and bring comfort. Porky’s BBQ are delighted to help raise awareness for the cause with its specially created dog biscuit burger.

Beechbrook Capital Holds First Close on Latest Private Debt Fund Beechbrook Capital, the European specialist direct lender, announced the first close on its third Private Debt Fund at over 100m.

Commitments have been received from the European Investment Fund, British Business Bank Investments Ltd - the commercial arm of the British Business Bank - and a number of leading European institutional investors. A second close is expected towards the end of 2016, with a final close in 2017.

Beechbrook managing partner, Paul Shea, said: “We are delighted to receive so much support from both existing and new investors, who share our view that the European lower mid-market continues to represent a compelling investment opportunity.

With a strong and growing track record, Beechbrook is well placed to pursue this opportunity.”

Beechbrook private debt funds provide debt capital to European private equity-sponsored businesses with turnover between 10m and 100m. Typically Beechbrook invests 5 million to 15 million per transaction to support acquisitions, buyouts, shareholder re-alignments and general expansion plans.

Founded in 2008, Beechbrook is one of the most experienced and successful European private debt managers with almost 500m raised to date across four funds and two distinct strategies. In December 2015, it also held a first close on its UK SME Credit Fund, which has a separate dedicated team and invests in sponsor-less SMEs in the UK. In total, Beechbrook has made 36 investments in the European lower mid-market, with ten full exits to date.

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bFinance Appointed by Brunel Pension Partnership to provide Investment advice on Pooling Strategy for 10 South West Pension Funds Appointment highlights bfinance’s expertise in providing bespoke investment advice to Local Government Pension Schemes bfinance, the leading independent investment consultancy, has been appointed by the Brunel Pension Partnership, an investment pooling project, to undertake an independent review of the plans to pool the investment assets of ten local government pension funds in the South West. bfinance secured the mandate following a competitive tender involving leading investment consultants.

Additional investment advice will include a comprehensive cost benefit analysis for the funds in relation to the use of internal investment resources versus the appointment of external managers, review of the potential transition costs of the selected investment strategy and other potential costs which could be incurred.

Sam Gervaise-Jones, Head of Client Consulting, UK & Ireland at bfinance, said: “We are very pleased to have been appointed by the Brunel Pension Partnership to conduct this review.

Brunel is the first pool to request a formal review of its pooling plans and we are confident that there will be more pooling projects turning to investment consultants for expert Announced in 2015, the Brunel Pension investment advice on how best to Partnership is an investment pooling execute their plans. project, which was set up to explore the options for pooling the investment While the landscape for consultants assets across ten funds in the Southhas changed significantly since UK West, including The Environment public pensions started pooling Agency Pension Fund, and the Local their assets, we believe there are Government Pension Funds of Avon, significant opportunities for investment Buckinghamshire, Cornwall, Devon, consultants to be involved. There Dorset, Gloucestershire, Oxfordshire, remain a lot of niche areas that will Somerset and Wiltshire. require the investment expertise of consultants depending on the With collective pool assets of c £23 implementation route that is chosen.” billion, the project aims to achieve savings over the longer term from both bfinance has worked with more than lower investment management costs 40 of the leading local government and more effective management of pension funds in the UK, representing the investment assets. Funds that are in excess of 50% of total assets under part of the Brunel Pension Partnership management, and internationally has envisage that the pooling of assets will advised over 70 public pension funds. result in net savings of c. £16 million Most recently bfinance was awarded annually, and a potential to increase Investment Consultant of the Year savings to £70 million per annum over 2016 at the LAPF Investment Awards. time.

Matthew Trebilcock, Brunel Pension bfinance has been engaged to provide Partnership, said: independent investment advice to the Brunel Pension Partnership, which is “We welcome our partnership with to establish the Brunel Company, an bfinance and are confident that their FCA-authorised business. This will be specialist expertise and experience in responsible for managing the assets the competitive landscape of pooling of the pool. bfinance will be involved funds will provide us with a thorough in key areas of the pooling plans, and tailored cost benefit analysis of the including providing independent advice proposed investment portfolios that on the 22 proposed portfolios that the Brunel Pension Partnership have will be made available to the funds, as designed for the ten funds that are well as reviewing the specifications for part of the project to ensure that it is the portfolios, including structure, fee the most appropriate approach for the levels, and projected savings.

Partnership.”

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Bryon Secures £12Million Funding to Support Growth Byron, the premium hamburger restaurant group, has secured a new £12million banking facility funded jointly by Santander and Royal Bank of Scotland’s Corporate Transactions team until 2021. The new facility is in addition to existing arrangements and will provide capital to support Byron’s future growth plans as it continues its national roll-out.

WByron was launched in Kensington High Street in 2007 and now employs 1,800 people in 65 restaurants throughout the UK. The business plans to reach 100 restaurants in the next three years.

Tom Byng, Founder and CEO of Byron, said: “Santander and Royal Bank of Scotland have proved to be supportive partners over the past two and a half years, during which the business has nearly doubled in size. We are delighted to continue this partnership with a new funding package which will support our ambitious growth plans.”

Gary Nutley Head of Corporate Transactions London and South at Royal Bank of Scotland said: “We have enjoyed working with Byron over the last couple of years and remain committed to supporting their growth ambitions. The funding deal will assist them with plans to expand their premium hamburger restaurants across the UK and help to achieve a target of 100 restaurants by 2019. This is an exciting period for the business and we are pleased to work in partnership with them.”

Andrew Tully, Head of Structured Finance, Financial Sponsors, London at Santander said: ‘”We’re delighted to be extending our support to Byron to allow the management team to take one of the UK’s most loved premium hamburger brands to a wider national audience. This deal represents an increase in funding levels and reinforces Santander’s commitment to the branded casual dining sector.

We look forward to working with the management team in this next phase of growth.”

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Consumer Goods M&A Quadrupled in 2015 with Deal Value Topping $226Bn • Mergers and acquisitions by the top 50 global consumer goods companies totalled $226bn in 2015, more than the previous four years combined

Western markets, and private equity firms like 3G Capital have been demonstrating a different, more efficient way to run an FMCG giant.

• Revenue growth of the top 50 declined for the 5th year running as slowdowns in emerging markets, currency volatility and competition from agile local competitors put further pressure on the world’s consumer

“3G Capital has increased the profit margins of ABInbev, Kraft and Heinz by between 8 and 10 percentage points.

Shareholders are now challenging the cost structures of other Global 50 giants in search of similar boosts to profitability.

M&A has become the primary source of revenue growth among the top 50 global consumer goods companies as sales growth in the sector slumped to 3.4%, half what it was just five years ago in 2011 (6.7%).

This is according to OC&C Strategy Consultants’ 14th annual Global 50 report, in collaboration with the Grocer, which analyses the financial performance of the world’s largest consumer goods companies – the likes of Nestle, P&G and Pepsico.

The report reveals that M&A deal value quadrupled from $56bn in 2014 to $226bn in 2015, with a flurry of large deals making 2015 the biggest year of M&A in the sector since 2008.

Two mega mergers - ABInbev-SABMiller and Kraft-Heinz accounted for $175bn or three quarters of the total, but the increase in M&A activity was also driven by: further consolidation in cash rich but low growth tobacco; Brazil’s JBS expanding into Europe with its acquisition of Moypark; and Heineken purchasing four mid-sized businesses in emerging markets.

This comes in response to a further decline in underlying organic year-on-year sales growth of 0.4% for the top 50 – equating to $4bn in lost revenue.

The slowdown in BRIC markets, particularly China, has hit FMCG companies hard. The growth rate of China’s FMCG markets fell by more than half from 7.4% in 2013 to 3.5% in 2015 – a far steeper decline than the country’s GDP growth rate decline (7.7% in 2013 to 6.9% in 2015).

But macroeconomic factors are only partly to blame for the growth problems faced by the Global 50.

Will Hayllar, Partner at OC&C Strategy Consultants said: “The Global 50 consumer goods giants are finding their very business model under siege from all sides. Smaller local competitors continue to gain share in not just BRIC but also

“Meanwhile, nimble local players have been stealing share across the board. In Western markets, their success has been fuelled by exploiting fragmenting customer demand and savvy use of digital. Dollar Shave Club’s direct to customer business model, for example, has propelled the company to over $150m in sales and #2 market position in US shaving in just 5 years. In emerging markets, local players have been taking share through a combination of scale in local distribution networks, tailoring products to local trends and tastes, and agility.”

The research shows that the Global 50 are working hard to find a way out of these doldrums, however, with mergers and acquisitions just one of the levers being pulled to find growth.

Marketing spend was up by 0.7% of sales, R&D by 0.1%, together contributing an $8bn boost in investment and leaders in the industry have been embracing digital across the value chain in a further bid to drive growth.

Will Hayllar continued: “Greater investment in R&D and marketing, and the surge in M&A activity show that the Global 50 aren’t taking tough market conditions and aggressive competition lying down. But there’s an additional growth lever that certain FMCG businesses are embracing better than others, and that’s digital innovation.”

“Consumer goods companies need to be thinking about how digital can bring value across their whole business: from supply chain optimisation and digitally facilitated new product development, to marketing and direct to customer sales. The digital revolution has also heightened the war for talent, with FMCG businesses increasingly losing out to tech players in the race to attract the top graduates. Those who embrace digital ways of working and a more entrepreneurial culture will be better placed to attract and harness the talents of the digital native generation.”

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Leading Provider of Cloud-Based Business Valuations Bizequity Expands Global Reach with Launch in Fastest Growing Tech Hub in the world - India • Offering will enable India’s 40 million SMB owners to answer the fundamental question of what their business is worth • Award winning business valuation service will be delivered through partnership with Asia’s largest franchise solution company, Franchise India BizEquity, the leading global provider of online business valuation knowledge and performance big data, announced it is launching its services in India, the world’s fastest growing tech hub. The move follows BizEquity’s Singapore launch in 2015, and marks the next stage of its expansion in the Asia-Pacific region.

worth, and how their businesses are performing at a fraction of the typical cost - less than 1/30th - and typical time – 4 - 6 weeks - it takes for traditional business valuations.

With 67% of businesses under-financed and 50% underinsured, and with many proprietors planning retirement based on the sale of their business, access to realtime business valuation knowledge is crucial for business owners. Despite its importance, only 2% of businesses carry out an annual valuation because this crucial valuation data has traditionally been inaccessible to the majority of business owners due to lengthy time and high costs involved.

BizEquity is successfully democratising this important knowledge for Indian business owners, enabling them to use these insights to optimise their ability to capitalize on a range of opportunities, such as securing investment from third-parties at the best price, negotiating an appropriate level of debt for expansion or move into new markets, or successfully negotiating a merger or sale.

BizEquity’s tailored valuation service will help India’s 40 million SME owners understand the true value of their business. The service will also enable India’s financial institutions, such as wealth managers and professional advisors including accountants, to white-label BizEquity’s valuation platform and use the detailed report it produces as a prospect and lead generating tool.

BizEquity’s India launch comes at a time when changes in regulatory framework, demographic and technologies are enabling the growth of fintech. The fintech industry in India is predicted to grow two fold by 2020, with global brands lending their weight. This drive brings a lease of life and convenience to smaller businesses, which historically have struggled to benefit from national and global growth opportunities due to a traditionally poor technology infrastructure and network.

The launch sees BizEquity partner with Asia’s largest franchise solution company, Franchise India Brands Limited (Franchise India), which will support BizEquity’s dedicated team in India to deliver its award winning valuation service to the country’s small business owners and financial institutions. BizEquity’s platform will also play a key role in Franchise India’s recently launched market place for selling and buying businesses, Business Exchange.

According to a report by NASSCOM, India was ranked the third largest tech start-up ecosystem with more than 100 accelerators, 200 active angels, 150 VCs and over 4,200 startups operating in the region. With India’s advancements in innovation, technology and entrepreneurship, the country presents a favourable environment for BizEquity to introduce its cloud based big data service to democratize business valuations.

BizEquity’s dedicated cloud-based platform harnesses sophisticated algorithms and big data knowledge to provide business owners, and the financial institutions and wealth managers that advise them, with real-time insight into the fundamental question of what their business is

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Gaurav Marya, Chairman, Franchise India commented: “At 48 million, India has the second largest number of SMEs in the world that employ nearly 40% of India’s workforce and contribute 17% to the Indian GDP. Despite this significant contribution, SME ‘s do not get

registered and nearly 95% of SME’s do not know their business value.

This is largely because Indian SME owner-operator don’t plan for a longterm exit strategy, unlike the Start-up ecosystem in India. Getting financing also becomes a big challenge and SME’s remain under-capitalized, which is why knowing the true value of your business really matters Gaurav Marya, Chairman, Franchise India commented: “At 48 million, India has the second largest number of SMEs in the world that employ nearly 40% of India’s workforce and contribute 17% to the Indian GDP. Despite this significant contribution, SME ‘s do not get registered and nearly 95% of SME’s do not know their business value. This is largely because Indian SME owneroperator don’t plan for a long-term exit strategy, unlike the Start-up ecosystem in India. Getting financing also becomes a big challenge and SME’s remain under-capitalized, which is why knowing the true value of your business really matters Franchise India is very excited to partner with BizEquity to enable the Indian SME business ecosystem to know their true value that could help their business in succession planning, selling the business, preparing to go public, partnering up, acquiring other businesses, looking to get investors, or ensuring that the business will support a retirement lifestyle.”

Michael M. Carter, CEO of BizEquity, commented: “Our mission is to value every business in the world and we are delighted to continue our progression into Asia, through the launch of our dedicated valuation service tailored to the Indian market place. With SMEs accounting for over 97 percent of all enterprises across APEC economies, and representing over half of the workforce, not only is the market opportunity vast, but there is also a tremendous opportunity to help small business owners in the region by democratising the business valuation knowledge so fundamental to their success.”

Naman Shah, BizEquity’s APAC Market Director, commented: “Following our successes in Singapore, our move into India,the world’s fastest growing tech hub – is a natural next step in our growth strategy that will

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enable us to help the country’s financial institutions enhance their service offering and prospect better as well as serve thousands of SMEs by providing them with real-time insight into their true business value.”

Globally the business valuation industry BizEquity has already valued over 30 million businesses globally. Its award winning business valuation service has been adopted by over 190 financial institutions which are harnessing the sophisticated algorithms and big data knowledge to better gauge the risk profile of their clients. This allows them to assess, for example, whether these businesses are underinsured or underfinanced, and enables them to enhance their services by providing the most up to date valuation data on their businesses.

BizEquity was founded in 2010 by Michael M. Carter, a former venture capitalist, who conceived the idea with the support of a leading financial institution and leaders in the accounting, finance, venture capital, and technology sectors. The company has legendary US software investor Peter Musser and former COO and CFO of AICPA (America’s biggest association of accountants) Clarence Davies as its two co-Chairmen.

Gide Loyrette Nouel, Willkie Farr & Gallagher and Allen & Overy Advising on the Privatisation of the Nice and Lyon Airports

of Commerce and Industry, the Auvergne-Rhône-Alpes Region, the Rhône Département and the Lyon metropolitan authorities.

These privatisations are taking place pursuant to French law no. 2015-990 of 6 August 2015 on growth, activity and equality of economic opportunities.

A call for tenders in respect of each airport was launched by the French State Investments Agency (Agence des Participations de l’Etat) on 10 March 2016.

The State has designated the consortium of Atlantia, Aeroporti di Roma and EDF (EDF Invest) as the prospective purchaser of its holding in ACA’s capital.

The consortium of Vinci Airports, the Caisse des Dépôts et Consignations and Predica has been designated prospective purchaser of the State’s shareholding in ADL. The final decision regarding the disposals will be taken after full consultation with ACA’s and ADL’s works councils, and once authorised by the competent merger control and civil aviation authorities.

The French State Investments Agency is advised by Gide, which has put together a team of 20 lawyers led

by Thomas Courtel (Public and Infrastructure Law) and Guillaume Rougier-Brierre (M&A), and also including Stéphane Hautbourg (Competition Law) and Foulques de Rostolan (Employment Law), partners.

ACA’s capital is currently 60%-held by the State and 40% by the Nice-Côte d’Azur Chamber of Commerce and Industry, the Provence-Alpes-Côted’Azur Region, the Alpes-Maritimes Département and the Nice-Côte d’Azur metropolitan authorities.

The consortium of Atlantia, Aeroporti di Roma and EDF (EDF Invest), prospective purchaser of the State’s shareholding in ACA, is advised by Willkie Farr & Gallagher, with a team led by Thierry Laloum and Amir Jahanguiri (partners) and comprising, in Paris, Anne-Laure Barel, Perrine Saunier and Gabrielle Redde for Public Law, Antoine Bouzanquet and Idama Al Saad for Financing, Gabriel Flandin (partner), Laure Pistre, Marion Bellemin, Louis Jambu-Merlin and Marie Aubard for Companies Law, David Tayar (partner), Guillaume Melot and Mathilde Ayel for Competition Law, Philippe Grudé (counsel) for Tax Law and, in Rome, Luca Leonardi (partner) and Massimo Palombi (counsel) for Companies Law, and Leonardo Fedrini for Tax Law.

ADL’s capital is also 60%-held by the State, with the remaining 40% being held by the Lyon Chamber

he consortium of Vinci Airports, the Caisse des Dépôts et Consignations and Crédit Agricole Assurances (through

The French government announced that it had selected the prospective purchasers for its shareholdings in airport companies Aéroports de la Côte d’Azur (ACA) and Aéroports de Lyon (ADL).

its subsidiary Predica), prospective purchaser of the State’s shareholding in ADL, is advised by Allen & Overy, with a team led by Romaric Lazerges (Public and Infrastructure Law) and Marc Castagnède (M&A), and also including in particular Rod Cork, Amine Bourabiat and Pauline Portos (Banking), Paul Vandecrux (Public Law), and Alexandre Ancel, Pierre Imbrecht and Julie Parent (M&A). Olivier de Juvigny (from the firm of DPJA) is also involved on competition law aspects.

Global M&A Activity Declines in the First Half of 2016 After Reaching Record High in H2 2015 M&A volume and value down in all regions, global PE/VC activity also declines across the board Zephyr reports on M&A and private equity activity in H1 2016…

Both the volume and value of global mergers and acquisitions (M&A) dropped significantly in the first half of 2016, according to information collected by the leading M&A database Zephyr. In all there were 43,352 deals worth a combined USD 1,941,538 million in the opening six months of the year, compared to 53,287 deals worth USD 3,270,736 million in the second half of 2015. Declines were also recorded year-on-year; in H1 2015 USD 2,942,215 million was injected across 52,637 deals. The disappointing showing means the last time volume and value were this low for a six month period was in H1 2013 (43,065 deals worth USD 1,685,036 million).

Lisa Wright, Zephyr director, commented, “It was always going to be challenging for 2016 to keep up with the blistering pace of M&A dealmaking set in 2015 and many will have been concerned that activity would not be able to sustain the levels recorded last year. To that end, H1 appears to have confirmed many people’s worst fears. However, it is worth noting that in every year since 2012 the second half of the year has performed better than the first in terms of value. It would not be unheard of for activity to improve significantly over the course of the coming six months

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in which case we could be looking at a very different picture at the end of December in terms of figures for the whole of 2016. The recent Brexit vote by the UK has caused consternation in the global financial markets, and the current uncertainty around the global markets could impede upon dealmaking appetites for the remainder of the year.”

Zephyr shows that the decline in value comes as a result of decreased deal volumes in H1 2016, combined with fewer “mega” deals being signed off over the six months. Just 12 deals broke the USD 10,000 million barrier in H1 2016, compared to 39 deals in the second half of 2015. However, a number of significant transactions were still announced, and the top deal over the six months featured a Swiss target, as ChemChina, through its CNAC Saturn (NL) vehicle, agreed to pick up Basel-headquartered agricultural pesticides and fertilisers manufacturer Syngenta for USD 43,000 million.

However, at present the future of this deal is not clear, with recent reports suggesting the US government and the Committee on Foreign Investment may decide to block the transaction.

This is one of only three deals worth more than USD 10,000 million announced during the period which did not feature a US target. The other transactions include the USD 13,185 million combination of Deutsche Boerse with the London Stock Exchange and Aegon’s USD 17,601 million purchase of BlackRock’s defined contribution pension platform and administration business.

The majority of world regions included in the report also declined in terms of both volume and value in H1 2015. The only exception was MENA, where value climbed 23 per cent to USD 15,720 million over the six months, although volume was in keeping with the global trend, dropping from 349 deals in H2 to 345 in H1 2016. All other regions declined over the six months, with the steepest drop reserved for Central and Eastern Europe, which slipped 52 per cent from USD 88,453 million in H2 2015 to USD 42,538 million.

Meanwhile, the Zephyr database shows private equity dealmaking followed the same pattern in the first six months of 2016; the last time value was lower was in H1 2013, when USD 172,978 million was invested, although even that figure was higher than the USD

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129,492 million invested in H1 2012.

In all there were 2,651 private equity deals worth USD 196,037 million signed off during the six months. In terms of volume this represents a 20 per cent decline on the 3,325 deals announced in H2 2015, while value fell 47 per cent from USD 367,516 million over the same timeframe. Both volume and value were also down year-on-year as the latter dropped 25 per cent on the USD 261,640 million invested in the first half of 2015 and the former declined at the slower rate of 22 per cent from 3,402 deals over the same timeframe.

Lending Works Announces 3 Million Series a Investment Round Funding to support rapid growth of UK’s #3 P2P lender • Rapidly growing peer-to-peer lending platform has received over £3 million in investment from institutional heavyweights including NVM Private Equity • Funds will prove instrumental with the platform set to launch its Innovative Finance ISA and other new loan products as it sets out to achieve target of 200% year-on-year loan growth in 2016 and 2017 • Lending Works has already grown from start-up to the third-largest consumer P2P lender in UK, with long-term ambitions to catch and overtake the leading two Lending Works, the first peer-to-peer lender to have insurance against borrower default risks such as accident or loss of employment, announced the conclusion of its Series A investment round, raising its target of £3 million.

NVM Private Equity (NVM) invested £2m in early June 2016 to complete the round after earlier investments from an existing institutional shareholder.

The cash injection provides a timely boost for Lending Works, which is on the brink of launching its new Innovative Finance ISA (IFISA), in

addition to confirming new partnerships, announcing key hires and introducing new loan products as part of the firm’s ambitious growth plans which have already seen it become the UK’s third-largest consumer P2P lender in just over two years.

Nick Harding, founding CEO of Lending Works, commented: “We’re delighted to announce the recent investment in our business

by NVM Private Equity. They bring significant experience in key areas including business scalability, risk and business development and we consider their backing to be a ringing endorsement of our rapid progress as a company. This latest investment comes at an exciting time for Lending Works.

“We’re expecting to launch our new IFISA imminently, which will allow lenders to earn tax-free returns through our platform. Needless to say, it sets the foundations for continued growth which will be well supplemented - and driven - by this new investment.” which will be well supplemented - and driven - by this new investment.”

Focus on partnerships and growth NVM is an independently-owned private equity firm, specialising in SME investments typically between £2m and £10 million. Over the last three decades, it has invested in over 270 SMEs in the UK, and currently manages over £300 million in private equity funds.

The investment underpins the positive momentum for Lending Works, with the platform having launched a pointof-sale system for loans within the retail finance sector earlier this year.

The expansion into retail finance is part of Lending Works’ strategy to focus on partnerships in order to grow the business and reach its lending target of £50 million during 2016.

Harding added: “Our retail finance offering, coupled with successfully closing our Series A investment round is a show of intent on our part as we look to broaden our network with other partners. We see this as key to the exponential growth we are on track to achieve both in the short and medium-term, and we are looking forward to releasing some exciting new information regarding

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new loan products as a result of such agreements.

“Our customers come first at all times, and they can take great confidence from this investment round which ensures Lending Works has a robust balance sheet. They can also draw comfort from the fact that our company has undergone the rigorous due diligence process that an institutional investor mandates before making an investment, hence validating Lending Works’ team, financials, compliance, software, systems and processes.

“Moreover, we plan to dedicate some of the capital from the latest investment round to further strengthening our team. Recruiting exceptional team members remains a key focus for us as we look to continue our journey in pioneering fair financial services that people love.”

Market in Voice Raises 7.2M in the First Major Fundraise by a PeerTo-Peer Lender Since Brexit Vote • New growth round led by MCI. TechVentures Fund of MCI Capital Group (investors in iZettle, Azimo, Gett, Auctionata), with existing investor Northzone also increasing its investment into the company • MarketInvoice currently providing over £1.5m per day in cash flow finance to UK businesses, and fast approaching the £1 billion mark of total funding through its platform since launch in 2012 •Funding coincides with the appointment of a Chief Marketing Officer and Director of Sales, and the move into a larger office in Shoreditch, East London MarketInvoice announced a £7.2 million investment led by MCI. TechVentures Fund of MCI Capital, a listed Polish private equity group.

This marks the first major fundraise from a peer-to-peer platform since the Brexit vote, with a European venture backer investing directly into the

leading UK fintech company.

MarketInvoice, Europe’s largest peer-to-peer online invoice finance platform, will use the funds to cement its position as the biggest player in the UK, accelerate marketing, and continue developing its products around customer needs.

The platform has already provided £850 million worth of funding to UK businesses, and is set to reach the £1 billion before the end of the year.

As the peer-to-peer sector consolidates, MarketInvoice will now look to broaden its reach by targeting a wider range of businesses, from start-ups to mid-sized corporates.

This will ensure even more companies have the ability to get paid faster by financing their invoices, allowing business owners to save time and focus on what’s most important – running their business.

In order to continue its ambitious expansion, MarketInvoice also welcomes two senior hires in key positions, as the 100-strong team moves into a brand new Shoreditch office. Lisa Gervis (formerly of Sequoia-backed Elevate Credit and American Express) has joined as Chief Marketing Officer, with Rupert Thorp (formerly of Experian and Sky IQ) joining as Director of Sales.

Existing investor Northzone, is also increasing its investment in the company. Sylwester Janik of MCI Capital joins the company’s board.

Sylwester Janik, Senior Partner at MCI Capital said: “MarketInvoice is a prime example of a truly innovative business that’s redefining an age-old sector of traditional finance. They provide vital working capital to a continuously underserved segment of customers, where incumbents are reluctant to innovate. “ “After iZettle and Azimo, this investment is a natural continuation of our fintech focused strategy, and a great addition to our fintech portfolio.

We see a massive opportunity for MarketInvoice to further consolidate its dominant market position in a rapidly growing sector, as well as lay the foundations for future geographical expansion.”

“Following the result of the UK referendum, many might perceive investing in fintech as a risk. With MarketInvoice, it’s actually the opposite. We see an economic slowdown and a distracted banking sector as a potential opportunity to fuel growth of the platform. Through its prudent risk management, we believe MarketInvoice is well prepared to deal with changing market sentiment in the future.”

Jeppe Zink, Partner at Northzone said: “Since our initial investment in MarketInvoice in 2014, we have been impressed by what the team has delivered, and by the real difference they are making to business owners across the country. We believe that invoice financing will only become more important to businesses in the coming months, and this round enables MarketInvoice to further accelerate growth and service their growing customer base.”

Anil Stocker, Co-founder and CEO of MarketInvoice said: “We’re pleased to bring on a new European investor in MCI Capital to further fuel our growth, demonstrating there is still real appetite for investment in UK fintech. MCI have a proven track record as growth backers of some of Europe’s most exciting tech companies, so we’re delighted to be working together.”

“Given the international expertise of MCI’s team, they will also support us in our long-term goal of international expansion, increasing our reach to business owners and investors across Europe.”

“Our mission at MarketInvoice has always been to provide businesses with access to simple, fast funding. We’ve now saved our customers over 5,000 years in waiting for their invoices to be paid – instead, they’re winning new business, growing operations and hiring more staff. We’re changing the day-to-day lives of business owners for the better.”

“In the wake of Brexit, we think the coming months present a big opportunity for MarketInvoice. Recent intervention by the Bank of England suggests we might see significant

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reductions in bank lending. As in the aftermath of 2008, peer-to-peer lenders can once again step in to provide that funding when the banks move slowly. In every period of turmoil there exists huge opportunity - we believe our model will mature through this cycle, and prove we are here to stay.”

MCI Capital is on multistage private equity group based in Warsaw, Poland. With 17 years of expertise of investments in digital economy companies, MCI has realized over 60 investments and 30 exits. MCI Funds’ are active in Western provide that funding when the banks move slowly.

In every period of turmoil there exists huge opportunity - we believe our model will mature through this cycle, and prove we are here to stay.”

MCI Funds’ are active in Western Europe, UK, Scandinavia, CEE and Turkey. The current portfolio of MCI.TechVentures Fund – a growth technology fund - includes companies such as iZettle, Azimo, Gett, Windeln and Auctionata.

Northzone is a leading European venture capital fund. Over the past 20 years, Northzone has invested in some 120 technology-enabled businesses. The current portfolio includes companies such as Spotify, iZettle, Trustpilot, and SpaceApe. The company has offices in London, Stockholm, New York and Oslo.

MarketInvoice is Europe’s largest peer-to-peer invoice finance platform.

Businesses can select which invoices they want to finance, unlocking tiedup cash in 24 hours at competitive rates. It’s fast, flexible funding for growing businesses.

Launched in 2011 and based in London and Manchester, MarketInvoice has helped thousands of businesses overcome the lengthy payment terms of their customers.

More than £850m has been raised through the platform, with businesses using the funds to hire more staff, launch new products and pay their suppliers.

In August 2013, the UK government – via the British Business Bank – began lending to UK small businesses through MarketInvoice. This partnership has now seen more than £50m funded to UK small businesses via the platform.

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Maven Capital Partners and NVM Private Equity LLP Invest in Rockar to Fund Roll-Out of Digital Stores and Technology Platform Maven Capital Partners (“Maven”) and NVM Private Equity LLP (“NVM”), two of the UK’s leading private equity houses, jointly announce a £5 million investment in Rockar, an innovative motor retailer which is revolutionising the car buying experience. The investment, which is split equally between Maven and NVM, will enable Rockar to partner with more major automotive manufacturers following its initial success with Hyundai, launch more digital stores in high footfall shopping centres and continue to develop its innovative technology platform.

Rockar was established in 2012 with the aim of revolutionising the car buying experience. The result is a disruptive new retail proposition where customers have access to all the services of a traditional dealership online, or at one of Rockar’s digital stores.

This unique and engaging store design lets the customer browse the vehicles as they wish and is supported by pioneering in-store digital contenting the car buying experience. The which provides information about the cars and helps explain the purchasing process. In-store commissioned sales staff have been replaced by ‘Angels’, who are simply there to help. The stores have created a convenient place for customers to view cars at their leisure without the pressure to buy.

Rockar has also developed an online solution which helps car manufacturers digitalise their traditional route to market. The car market is one of the few not to have fully embraced online retailing to date. While consumers will typically undertake significant research online as part of the buying process, there is still the requirement to visit the physical showroom to negotiate a deal and complete the purchase. Rockar’s ‘Buy Button’ technology enables the consumer to complete the entire

purchase online, including options for part-exchange and finance.

The latest fundraising follows a £1 million investment from Seneca Partners EIS funds in November 2014 which saw Rockar launch its first two digital stores in the Bluewater Shopping Centre, Kent and the Westfield Shopping Centre, East London.

The Rockar team is led by Simon Dixon who has significant experience in the car industry, having helped build the Dixon Motor Group PLC for 20 years, before selling it to RBS in 2002 for £110 million.

Simon Dixon, Chairman at Rockar, said: “Following on from the success we have achieved to date, which has seen over half a million people visit our ground-breaking stores and experience our unique online retail platform, this investment is the latest endorsement of the Rockar proposition.

From the outset we have aimed to revolutionise the car-buying experience. Customers have proven the appetite for our service and now we have car manufacturers actively seeking to partner with Rockar to help them build their online retail presence, so it’s great to bring on board Maven and NVM alongside Seneca to help develop this offering. All three investors share the same vision for our business and will help us deliver the service to a range of other leading car brands in the coming months.

Seneca has proven to be a critical partner for Rockar, backing us at the outset with the first round investment and now their corporate finance team have done a great job unlocking this additional funding. We look forward to continuing the success with our new investors.”

Ryan Bevington, Investment Director at Maven, added: “Maven is a proud backer of innovative British businesses and Rockar’s management team has achieved impressive results in a relatively short period of time.

The car industry is one of the few remaining retail sectors that has not yet embraced e-commerce or adapted to changing consumer trends. As a disruptor, Rockar is successfully challenging the traditional route to market and creating a compelling solution for modern

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consumer habits.”

Liam May, lead Investment Manager at NVM commented on the transaction, “In its short history Rockar has already demonstrated remarkable growth, and is leading the way in innovation in the automotive retail sector. NVM has an outstanding track record of backing successful software technology businesses and we believe Simon and his team have developed a unique, disruptive solution which is well placed to take advantage of changing automotive retail strategies.”

Principals and key advisors to the transaction, NVM and Maven were provided with: • Legal advice by Jeremy Thompson at Squire Patton Boggs, • Financial due diligence by Jeff Gardner and Rob McCarthy of Dow Schofield Watts.

• Commercial due diligence by Geoff Rampton and Roger Penney of RPL. • Management due diligence by Tim Worrall of Avalon Management Consulting.

• Technology due diligence by Andy Gardner, Douglas Eadie and Iain Mackay of Intuitus.

• Insurance due diligence by John Donald and Gordon Shaw of Aon. Rockar was advised on the fundraising

by Andrew Stubbs, Chris Bullough and Gordon Lane of Seneca Partners Corporate Finance, with legal advice provided by Jonathan Gillow of Hill Dickinson.

Maven Capital Partners and YFM Equity Partners Back the MBO of Indigo Telecom £12m Investment will accelerate the growth of the business and support a buy and build strategy in the telecoms sector Maven Capital Partners (Maven) and YFM Equity Partners (YFM), two of the UK’s most active private equity houses, have backed the MBO of Indigo

Telecom Group Limited (Indigo), acquiring the business from parent TTG-Global Limited. Maven and YFM have invested in partnership to provide a £12 million funding package, including additional funds to support a buy and build strategy to scale and diversify the Indigo group.

South Wales based Indigo designs, installs and maintains telecom networks across the UK and Europe, enabling customers such as Vodafone, Sky and BT to deliver fixed line, broadband, mobile and other data services to a wide variety of corporate, enterprise and consumer end users. Its key capabilities include Project Services, such as large-scale, turnkey network installation and commissioning projects, and Managed Services covering the management, repair and maintenance of telecom networks.

Indigo has 85 full time employees, and operates a well-developed partner eco-system of up to 500 engineers.

This enables the business to provide comprehensive geographical coverage for customers, with minimal ‘time to site’ service levels.

The company operates across 20 countries and supports over 10,000 client sites with operations managed through a dedicated 24-7 Network Operations Centre, which allows engineers to fulfil stringent two to four hour service level agreements, and offers a geographic reach which provides a key competitive advantage in the market.

Sustained investment in network infrastructure and technology, supported by continued high reliability maintenance, is essential to support the exponential growth of IP traffic, which is forecast to increase nearly three-fold in Europe over the next five years.

The robust underlying market dynamics, with high growth in fibre to the home, mobile multi-media and the cloud driving the need for well invested telecoms network infrastructure, underpins Indigo’s core service offering, with the business recognised as one of the market leaders for reliability of service and dependability.

The senior team is led by CEO Stephen Thompson, previously Vice President of Sales at Technicolor and COO of Alcatel Lucent UK & Ireland. Under Stephen’s leadership, the business has delivered

year on year increases in earnings performance, as well as an increased focus on operational efficiency and improved mix of long term Managed Service revenues.

Management has a growth strategy to create a global telecom services group that is resourced to achieve both organic growth, capitalising on a number of attractive market opportunities, and a focused buy and build strategy in a sector that has seen strong recent M&A activity. The senior team has already identified a number of strategic bolt-on acquisition targets in rapidly growing areas of the market, which each offer sales and cost synergies for an enlarged group.

Stephen Thompson, CEO at Indigo, said: “The telecoms infrastructure market is experiencing sustained growth and our business is ideally positioned to grasp the opportunity for expansion as increasing client demand continues to reflect the need for access to reliable, high capacity networks.

With the backing of Maven and YFM, allied to our existing client support infrastructure, we look forward to capitalising on the opportunity to gain additional market share, and pursuing a strategic acquisition programme” Andrew Ferguson, Investment Director at Maven, said: “Indigo has established a well-deserved reputation in the market for delivering an integrated, multi service offering to telecoms clients, with market leading service levels. We have been very impressed by the senior team, who have a wealth of experience in the UK and international markets. Indigo enjoys clear competitive differentiation across its target markets, due to a high quality service offering built on an unparalleled level of geographic coverage and a network of vendor agnostic engineers.

The business is well placed to expand both organically and through acquisition, and we’re delighted to be backing this entrepreneurial team and their growth strategy.”

Colin Granger, Investment Director at YFM, said: “Indigo is a strong, established player in a growing market and so aligns closely with our investment focus at YFM. The firm benefits from significant organic growth potential and we are very excited by the acquisition opportunities that currently exist.

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We have been impressed with how Stephen and the team have developed and grown the business historically and look forward to supporting their future plans alongside Maven.”

Williams & Glyn provided senior debt and working capital facilities to support the transaction.

Management were advised by Peter Barrand of Ignition Corporate Finance and Peter McLintock of Mills & Reeve LLP. Legal advice was provided by Osborne Clarke LLP, Financial due diligence was carried out by HMT LLP, Commercial due diligence by CIL, Management referencing by Korn Ferry, Insurance by JLT. Williams & Glyn were advised by Irwin Mitchell LLP.

MBO for Indigo Telecom Supported by Royal Bank Of Scotland and Private Equity Houses • The bank’s Corporate Transactions Team provide collaborative funding to support the acquisition and working capital facilities for Indigo Telecom Group • Investment will accelerate the growth of the business and support a buy and build strategy in the telecoms sector The Royal Bank of Scotland’s Corporate Transactions Team has provided a £2,000,000 term loan alongside equity investment by well-known sponsor Maven Capital Partners and YFM Capital Partners, to support the Indigo management team with the MBO of the business from parent company TTG Group. RBS Invoice Finance has also provided a £500,000 facility for working capital purposes.

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Indigo Telecom Group is a market leading, independent, specialist service provider to the telecoms industry, based in Caldicot near Newport. They design, install and maintain telecom networks across the UK and Europe, enabling customers such as Vodafone, Sky and BT to deliver fixed line, broadband, mobile and other data services to a wide variety of corporate, enterprise and consumer end users.

The group provide telecom support services to 20 countries and 10,000 sites across Europe. Indigo employ 85 full time staff, and operates a welldeveloped partner eco-system of up to 500 engineers which enables the business to provide comprehensive geographical coverage.

The senior team is led by CEO Stephen Thompson, previously Vice President of Sales at Technicolour and COO of Alcatel Lucent UK & Ireland. Under Stephen’s leadership, the MBO will allow the management team to focus on their clearly defined growth strategy, combining organic growth and specific acquisitions and will enable them to control the future direction of the business.

The Corporate Transactions deal team was led by Gary Nutley, Head of Corporate Transactions and James Hogan, Associate Director.

Stephen Thompson, CEO at Indigo Telecom Group, explains: The telecoms infrastructure market is experiencing sustained growth and our business is ideally positioned to grasp the opportunity for expansion as increasing demand continues to reflect the need for access to reliable, high capacity networks. With the backing of Royal Bank of Scotland, Maven and YFM, we are very much looking forward to capitalising on the opportunity to gain additional market share, and pursuing a strategic acquisition programme.”

Gary Nutley, Head of Corporate Transactions Team at The Royal Bank of Scotland, added: “We are delighted to support Indigo and the management team as they proceed forward as a standalone business. The MBO will allow Indigo to focus on core business strategies and we look forward to working with them in the future. The banks participation in this transaction demonstrates our appetite to support successful sponsor backed SME businesses across the regions.”

New Gleif Challenge Facility Extends Ability to Trigger Updates of Legal Entity Identifier Data to all Interested Parties The new online service is designed to further enhance the reliability and usability of the Legal Entity Identifier data pool The Global Legal Entity Identifier Foundation (GLEIF), the body responsible for ensuring the operational integrity of the Global Legal Entity Identifier (LEI) System, launched its new data challenge facility. It offers any interested party an easy and convenient means to trigger the verification and, where required, speedy update of LEI records including related reference data. This centralized online service, which is part of GLEIF’s data quality management program, further contributes to ensuring that the publicly available LEI data pool remains a unique key to standardized information on legal entities worldwide.

The LEI enables clear and unique identification of legal entities participating in financial transactions.

It connects to a set of reference data such as the official name of a legal entity and its registered address.

The GLEIF data challenge facility provides any user of LEI data with the opportunity to substantiate doubts regarding the uniqueness of an LEI code, the referential integrity between LEI records, or the accuracy and completeness of the related reference data.

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Private Equity Investment into Central and Eastern European Companies Highest Amount Since 2009, 2015 Invest Europe Data Shows Private equity and venture capital investment in Central and Eastern Europe last year hit its highest amount since 2009, according to new data from Invest Europe.

The total investment amount increased 25% year-on-year to 1.6 billion, with the number of companies backed matching 2014’s record level. The figures are taken from Invest Europe’s Central and Eastern European Private Equity Statistics 2015 report.

“Last year’s increase in regional investment activity, at a new postfinancial crisis high, points to a healthy and evolving market,” said Robert Manz, Managing Partner at Poland’s Enterprise Investors and Chairman of Invest Europe’s Central and Eastern Europe Task Force. “Central and Eastern Europe continues to develop dynamic businesses and when the time comes to exit, these private equity-backed companies can have the international reach to appeal to global acquirers.”

It was another strong year for private equity exit activity in the region, with a record 97 companies exiting at a total value of 1.2 billion – measured at historical investment cost – the third highest year on record. Trade sale was the most prominent exit route, accounting for over half of the divestment value at historical cost.

Public market exits made a strong showing, comprising 17% of total exit value at cost.

After 2014’s fundraising high, driven by some of the region’s largest fund managers, the capital raised last year was at a more subdued level of 418 million, as fund managers were more focused on investments and exits.

The high level of private equity investments and exits in Central and Eastern Europe last year is just part of the success story for the entire European market. Across the continent, total investments increased by 14% year-on-year to 47 billion, while exits, measured at historical investment cost, matched 2014’s record-breaking 40 billion.

Findings from Invest Europe’s Central and Eastern Europe Statistics 2015 report also include: • Over 200 companies received venture capital investment, including nearly 130 start-ups • Buyout investments increased by a third year-on-year to 1.3 billion with 40 companies backed, mostly in the energy & environment and consumer goods & retail sectors • The highest investment amounts were focused on businesses in Poland, Serbia, Hungary and Romania, comprising 85% of the region’s total investment activity by value in 2015 • 91% of companies receiving investment were based in Poland, Hungary, the Baltic states and Slovakia “The region has a number of innovative start-ups and interesting companies employing a well-educated and competitive workforce, and the experienced private equity and venture capital investment managers are perfectly positioned to harness their potential.” said Manz.

Formerly called the European Private Equity and Venture Capital Association (EVCA), Invest Europe is the non-profit trade association representing European private equity, venture capital and their global investors. The Central and Eastern European Private Equity Statistics 2015 report is free to download from Invest Europe’s website, investeurope.eu.

Report Reveals Private Equity Industry's Growing Concerns over the rise in Direct Investment • Report released by MVision Private Equity Advisers in conjunction with the London Business School reveals GP views around long term impact of direct investment from ‘Mega LPs’ • One in three GPs face head-to-head competition with LPs in deals Private equity and venture capital investment in Central and Eastern Europe last year hit its highest amount since 2009, according to new data from Invest Europe.

General Partners (“GPs”) expect to face increased competition for deals in the coming years, as growing numbers of Limited Partners (“LPs”) target transactions through direct investment, according to research released and compiled by the London Business School on behalf of MVision Private Equity Advisers. Almost half of GPs surveyed predict having to go head-tohead with LPs in acquisitions, with one in three already having done so in the last year.

GPs are also concerned that the rise in direct investment from LPs will significantly impact their ability to operate effectively. Almost 50 per cent of GPs questioned by the London Business School view Mega LPs - investors with the capital to invest directly in transactions usually reserved for private equity funds - as direct competitors in deal origination. Almost 40 per cent think this development has led to inflated valuations, as LPs working to different targets can afford to offer higher bids. Crucially, a third of GPs think that direct investment will make it harder for them to secure commitments in future fundraising in the longer term.

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The rise in direct investment is being driven by LPs’ pursuit of a better overall return, with almost half of GPs questioned citing concern over industry fees as the main contributor to the trend. Just four per cent of GPs thought that poor performance was a trigger for direct investment, with many perceiving fund terms as the more likely cause.

Although the trend may raise some concerns amongst GPs, the report shows that it may take some time yet for Mega LPs to truly rival private equity firms’ performance. GPs identified a multitude of reasons for why Mega LPs may struggle to enter the market, including limited industry knowledge (23 per cent), lack of transaction experience (22 per cent) and the speed of due diligence required to execute transactions (20 per cent).

Mounir Guen, Founder and CEO of MVision Private Equity Advisers, comments: “Many LPs avoid direct investment due to the reputational risk it may carry. In this respect private equity firms have historically acted as a useful buffer between investors and assets. However our research clearly shows that the tide is turning, as LPs seek to modernise fund terms that they believe are in favour of the GPs. “In addition to the more established Mega LPs of North America and Australia, we are now starting to see capital from Asia and the Middle East being funnelled into direct investment.

The perceived experience gap is exactly what many GPs hope will keep them ahead of their competitors in what is becoming a very crowded market place. Over time it will not”

Successful Business Founders Crowd Funding new Venture Four successful Scottish tech entrepreneurs have launched a

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£1 million crowdfunding drive on Crowdcube to scale up their disruptive online project management software business in the UK and US. Barvas, the latest product from MindGenius, is set to launch commercially in October 2016 and its founders are offering 14.6 per cent equity in return for investment, which will enable the business to expand sales in the UK and US and hire additional staff.

The new venture was founded by Ashley Marron, Derek Jack, Donald Maciver, and Jamie Rorrison. Jack and Maciver are the brains behind the MindGenius suiteW of business productivity tools and Gael Ltd, which was sold for £20 million in 2015. Rorrison led development of a Skyscanner Vertical Business product that grew from annual sales of £420K to £6m within two years.

Named after a picturesque village on the Isle of Lewis that was once home to one of its founders, Barvas is an online project management platform that supports all stages of a project from front-end planning to task management. It will be offered on a monthly software-as-a-service pricing model.

Ashley Marron, CEO of MindGenius, says: “We chose to crowdfund MindGenius in a bid to find investors who not only provide financial support, but will also add to our database of customers and contribute to, and benefit from, the overall success of the business.

“Initial uptake of the beta programme has been promising with over 1,000 users, plus significant interest from users of MindGenius.

“We noticed that 35 per cent of MindGenius users were project managers and following active engagement with them we determined a need for a tailored, supportive platform that delivered an end-to-end project management solution.

“We want to ensure the viral impact of the product maintains momentum by driving investment into brand building and marketing in the UK and establishing a sales base in the US where we have identified a strong interest in this software.

The minimum investment is £10, which includes a free one-year subscription to the software worth £108. The other investment levels range from £150 up to £50,000, which comes complete with a lifetime subscription for a team of 5, and an expedition to the Isle of Lewis to explore the natural landscape that inspired the product name.

This is the first round of external funding for the company, which is expected to drive the business to a potential growth from £500K to £3.8 million in sales over the next three years.

Marron says: “An estimated 37 per cent of projects fail due to inaccurate requirements gathering and PwC reported 41 per cent of projects that fail are due to changes in scope mid-project. These statistics demonstrate the need for a platform that encourages a greater focus on the front-end planning of a project, to give projects the best chance of success.

“We have an existing sales channel of over 90,000 users within MindGenius.

If we convert 2.5 per cent of our database alone, we will meet our initial projections, not to mention tapping into the 2 million project managers currently in the UK.”

Thos Capital Debuts on JSE Following R1.8 Billion Oversubscribed Private Placement • Offers investors long-term capital appreciation by investing, directly and indirectly, in a diversified portfolio of unlisted investments managed by Ethos Private Equity, the largest private equity firm in sub-Sahara Africa • Listing provides a liquid access point to enable public market investors to obtain an exposure to a diversified pool of unlisted assets and participate in Ethos Capital’s long-term growth prospects.

WMauritian-based Ethos Capital, an investment entity offering capital market investors a unique, liquid platform to gain exposure to a diversified pool of unlisted private

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type investments, successfully listed in the “Financials – Speciality Finance” sector of the main board of the securities exchange operated by the JSE. The opening trade in Ethos Capitals took place R10.26 per share, resulting in a market capitalisation of R1.85 billion.

Peter Hayward-Butt, Chief Executive Officer of Ethos Capital, said: “We are proud to be listing on the JSE. The overwhelmingly positive response to our placement affirms the strength of our company’s differentiators and prospects.

“We look forward to investing alongside Ethos Private Equity into high-potential businesses, supporting economic growth and job creation in the long term whilst simultaneously delivering value to our shareholders.”

Ethos Capital earlier successfully placed 180 000 000 A ordinary shares at R10 per share with qualifying investors, raising R1.8 billion in an oversubscribed placement. Rand Merchant Bank, a division of FirstRand Bank Limited acted as the financial adviser, sole global coordinator, bookrunner and JSE sponsor in relation to the listing.

The listing offers investors long-term capital appreciation by investing, directly and indirectly, in a diversified portfolio of unlisted investments. Ethos Private Equity - the largest private equity firm in sub-Sahara Africa – has been appointed as fund manager and advisor to Ethos Capital.

Commented Stuart MacKenzie, CEO of Ethos Private Equity: “Growth is a central principle of Ethos Private Equity’s strategy: value is added by actively transforming the strategy, operations and finances of investee businesses, striving to make them “best-in-class”.

“Through pioneering thought leadership, creativity and innovation, Ethos Private Equity has developed a long track record of sustainable investor returns.”

In its 32-year history, Ethos Private Equity has invested in 104 acquisitions of which 91 have been realised, delivering investment returns with a

gross realised internal rate of return (IRR) of 37.4%.

It is anticipated that the net proceeds from the listing will be invested in the following strategies: • Primary Investments: commitments to various funds to be raised and managed by Ethos Private Equity (“Ethos Funds”) during their respective fund-raising processes; • Secondary Investments: acquisitions of existing Limited Partner interests in existing Ethos Funds; • Direct Investments: acquisitions of interests in underlying investee companies alongside Ethos Funds to the extent that the Ethos Funds require co-investors in the underlying investee companies; and • Temporary Investments: investments in a portfolio of low-risk, liquid debt instruments (including South African government bonds and other similar, low-risk, liquid instruments) for cash management purposes.

Tikehau IM's Novo 2 Fund Supports Assists Bastide in a 25M Private Placement Financing for Business Development and Refinancing Purposes Tikehau IM announced the underwriting of 8.5 million by the Novo 2 fund out of a total 25 million Private Placement arranged by Société Générale.

Bastide is a family-owned group founded in Nîmes, France in 1977 which is active in the Homecare Services market in France, Belgium and Switzerland through three businesses: Homecare Assistance, Nutrition Infusion and Respiratory Assistance. Bastide distributes products by selling and renting nursing beds, wheelchairs, rollators, etc. and offers services such as installation and maintenance of medical devices.

In addition to the company’s organic growth, its acquisitions since 2010 have boosted its development.

Bastide has been listed on Euronext Paris since 1997 with a market capitalization of c. 157.8m as of September 1st, 2016 and it employs 1,265 people. At the end of its fiscal year on June 30, 2015, the company reported 171.0 million of revenues and 31.9 million EBITDA. In parallel to this 25 million transaction, Bastide also secured a 90m syndicated facility co-arranged by Natixis and CACIB which was subscribed by five banks allowing the company to refinance its existing debt and to finance its external growth plans and general corporate needs.

Novo 2, a fund designed to support France’s economic growth, was set up by the CDC and 27 insurance companies. Its main purpose is to provide financing facilities to growing small and medium-sized companies by directing available savings towards financing their innovation and expansion. Since its official launch in October 2013, Novo 2 has invested more than 365 m in 20 companies with an average maturity of 6.7 years.

UK PLC Dividends Exceed Profits as Cover Hits Lowest Level Since 2009 • Dividend cover ratio falls to just below 1.0x, the lowest level since the end of the last recession as profits slide • Basic materials, and oil and gas industries see dividend cover hit negative territory, and all but one sector see cover fall • Healthcare bucks trend, with dividend cover rising to 1.69x, an increase of 70% • Coverage ratios in FTSE 250 stronger than in FTSE 100 • Income investors should tread carefully if judging a stock on high yield yet low cover Dividend cover for the index of 350 leading shares, a measure of how affordable and sustainable company dividends are, has fallen to its lowest level since the end of the recession, according to new research by The Share Centre.

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Dividend cover for the index of 350 leading shares, a measure of how affordable and sustainable company dividends are, has fallen to its lowest level since the end of the recession, according to new research by The Share Centre.

The analysis, using data from The Share Centre’s Profit Watch UK report and the Capita Asset Services UK Dividend Monitor, shows that dividend cover[1] has fallen by 38% in the past year, dropping to 0.98x from 1.63x.

This means companies paid out more in dividends than they made in profit.

Based on profits of £76.4bn[2] made by the UK’s top 350 listed firms in the year to the end of December 2015 and reported by the end of March 2016, dividend cover is now at its lowest level since the third quarter of 2009, when it stood at just 0.73x. It has fallen for four consecutive quarters.

Dividend cover is a ratio defined by profit after tax divided by dividends paid. The higher the ratio, the greater the comfort that a company can afford, and can sustain, its dividend pay-outs. A lower ratio means a cut in the dividend is more likely if profits fall.

Net profits of the UK’s largest firms, especially those in the basic materials (predominantly mining companies), oil and gas and financials industries, have been hit hard by global headwinds.

Falling commodity prices have hit producers’ profits, while negative interest rates have impacted banks’ margins. As a result, net profits across the 350 have fallen by 54%, from £165.7bn a year ago. In contrast, FTSE 350 dividend payments have risen to £78.4bn, up from £71.2bn over the same period. This is the first time since 2009 that dividends have exceeded net profits.

Three Sectors Weigh Heavily on Dividend Cover, but fall is Widespread Banks, miners, and oil & gas companies had the largest impact on dwindling dividend cover in the top 350. Within the broader basic materials industry, the mining sector saw dividend cover turn negative (-1.06x) as miners reported

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losses of £7.7bn in 2015. With a similar loss of £8.0bn among oil and gas producers, this sector saw dividend cover fall into negative territory – a drop mirrored by oil services and distribution companies.

In the banking sector, profits were insufficient to cover the dividends: banks saw cover fall from 1.61x a year ago to 0.52x.

Excluding banks, oil producers and mining sectors, companies made more in profit than they distributed in dividends, with cover standing at 1.65x.

However, even without these influential sectors, cover across the remaining companies in the 350 was still down from 1.84x a year ago. Cover fell in all but one broad industry group.

For instance, the consumer services group (which includes supermarkets) saw dividend cover fall from 1.75x to 1.10x in the last year, with net profits barely outstripping dividend payouts, despite the decisive action to cut dividends from Tesco.

Healthcare bucked the wider trend, as the industry saw its coverage ratio rise to 1.69x from 0.99x a year ago.

This was driven by the pharmaceuticals sector. Although dividends barely increased, it saw net profits double to £11.5bn, largely down to the profit GlaxoSmithKline made on the sale of its oncology business to Novartis.

At the more detailed sector level, almost one third of the 38 sectors paid more in dividends than they reported in profit.

FTSE 250 v FTSE 100 The stronger profit growth of midcap companies led to the FTSE 250 seeing higher dividend cover than the FTSE 100. It currently stands at 1.56x, compared to 0.89x in the FTSE 100, reflecting the 34% fall in net profits in the FTSE 100, compared to the 7% increase in the FTSE 250.

However, the market reaction to the referendum result suggests that FTSE 250 profitability will deteriorate as the economy slows.

The ratio in the FTSE 100 is at its lowest level since the third quarter of 2009, with net profits now lower than the current level of dividend payouts. Helal Miah, research investment analyst from The Share Centre, said: “Plummeting profits in the FTSE 350 have undermined dividend cover across the board, even before the impact of a Brexit vote is fully felt among listed companies.

Global headwinds took their toll on the UK’s largest, most internationally exposed sectors, with commodity firms and banks especially seeing their profit margins and dividends under increasing pressure.

However, more worryingly for investors, the stress on dividend cover has been rather more widespread, and not limited to a small cluster of sectors.

“Finance directors will usually try to ride out a soft patch for profits and hold the dividend steady for as long as they prudently can. Eventually, it is important to face facts. We have already seen companies announce a slew of dividends cuts, many of which are still to filter through.

This will protect companies from unaffordable outflows of cash. In an ideal world, investors would see dividend cover recover owing to a bounce-back in profits, rather than from cuts in the dividend. With the outcome of the Referendum likely to hit profits of companies dependent on the UK economy, investors should expect cover to fall further or brace themselves for dividends to be cut; they should be cautious of companies that have a combination of a high yield, and a low cover.

“There had been bright spots amidst a gloomy outlook for many income investors, with some sector specific success stories. Health care dividends were more heavily supported, while mid cap companies once again outperformed their large-cap peers, with rising dividends being supported by climbing net profits.

The recent referendum vote could favour companies with large overseas operations or big export margins, while those dependent on the UK economy can be expected to suffer.

With this in mind, well-researched stock picking is all the more important to investors.”

“Gamechanger: A visionary strategist bringing fresh and unique ideas to the table, an individual or business that stands out from the crowd with ideas that inventively change the way a situation develops.�

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Allied Irish Bank (GB) Support MBO of HBS LTD • HBS Ltd announces Management Buy Out for undisclosed terms • Leeds team at Allied Irish Bank (GB) and Yorkshire advisers support the transaction The Leeds team at Allied Irish Bank (GB) have provided an undisclosed funding package to support the completion of a Management Buy Out for Wiganbased Horizontal Boring Services Ltd (HBS Ltd). The deal provides continued security for the firm that employs 41 members of staff led by senior managers Barry Beesley, Alan Rushton and Phil Blackledge.

HBS Ltd is a privately owned engineering company, based in Wigan.

The company has been established for over 30 years and provides a sub-contract manufacturing facility encompassing a wide variety of precision CNC (Computer Numerical Control) and conventional machines, in conjunction with an on-site Welding and Stellite® Depositing capability, and over 2000 approved welding procedures. HBS Ltd has a long and well established reputation as a first tier sub-contract machining and welding specialist to several major valve manufacturing companies around the world.

The new HBS Ltd management team led by Barry Beesley, Phil Blackledge and Alan Rushton have worked for HBS Ltd for many years. Barry Beesley has worked for the company for 30 years and his most recent role was Works Manager. Alan Rushton is a highly experienced Senior Welding Engineer who has worked for HBS Ltd for over 15 years and Phil Blackledge is a Mechanical Engineer who has worked there for eight years.

Allied Irish Bank (GB), represented by Mark Billington and Matthew Fannon, has provided an undisclosed funding package to support the deal and worked alongside a team of Leedsbased advisors including Phil Bailey and Robert Wilkinson from Armstrong Watson who were lead advisors to the

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management team, Martin Sweeney and Chris Blantern from Schofield Sweeney who provided legal advice to the management team and Dan McCormack from Lupton Fawcett Dennison Till who provided legal advice to AIB. Phil Blackledge, Mechanical Engineer at HBS Ltd said: “This is a very exciting time for us as we take control of a business we all know very well. We are focused on growing HBS and plan to modernise and develop the business to match the long term needs of our customers. We are also keen to expand our customer base and this deal allows us to drive improvement and secure new work. We have been very pleased with the support provided by Allied Irish Bank (GB) and the team of advisers who have worked closely with us to secure ownership of the business.”

Mark Billington, Head of the Leeds Business Centre and Senior Relationship Manager at Allied Irish Bank (GB) added: “I am delighted our funding is helping the new management team at HBS Ltd to realise their ambition to run the company. This is a great move for the business with a highly experienced team at the helm who have been heavily involved with the firm previously.

As a specialist business bank we are committed to supporting owner managed businesses and demonstrating a single minded approach to tailor the right funding package for each customer. We wish the team all the best with the future development of the business.”

Amadeus Invests in Genetic Testing Pioneers, Igenomix We wish the team all the best with Amadeus Capital Partners, the global technology investor, announced that it has made a growth capital investment in Igenomix, the world’s leading in-vitro fertilization (IVF) genetic testing company, based in Valencia, Spain.

Igenomix’s main customers are the most reputable providers of fertility treatments across the world. Its genetic services encompass all phases of fertility treatment, through preconception, pre-implantation and pre-natal, providing tests that help parents to increase their chances of having a healthy baby by screening embryos for chromosome and single gene disorders.

Igenomix tested over 30,000 embryos in 2015 in its six laboratories in Valencia, Miami, Los Angeles, New Delhi, São Paulo and Dubai and has a team of over 140 employees of which 21% have PhDs. Amadeus Capital’s investment in the company will back its international expansion, with a special emphasis on the US market.

Amadeus’s investment will also support the development of groundbreaking testing services at its leading laboratory in Valencia.

David Jimenez, Chief Executive Officer, Igenomix, commented on Amadeus Capital’s investment: “According to the World Health Organisation, infertility will be the third most serious disease this century.

Approximately 1 out of 10 couples of reproductive age are currently infertile. Genetic testing will prove crucial in ensuring that treatments supporting fertility will be successful for families. Amadeus’ support as an investor, with a deep understanding of genetic technologies, will help Igenomix to progress our international development and fund research into new testing services.”

Andrea Traversone, Partner, Amadeus Capital Partners, added: “Amadeus Capital sees Igenomix as a compelling investment opportunity in a fastgrowing sector of the healthcare market, based on major advances in genetic technology and improved access to IVF services. Igenomix has an exceptional management team in David Jimenez and Chief Scientific Officer Carlos Simon MD, PhD, recognised as a pioneer in IVF-related genetics, and we look forward to helping them build the business globally.”

In making this investment, Amadeus Capital Partners has joined a syndicate of investors including lead investor Charme Capital Partners, Aleph Capital and Graham Snudden.

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An Affiliate of Sun European Partners LLP, Announces that it has agreed to acquire O&S doors An affiliate of Sun European Partners, LLP (“Sun European Partners”), announced that it has agreed to acquire O&S Doors (“O&S”), the largest UK-based Made to Measure (“MTM”) kitchen door manufacturer, for an undisclosed sum.

Established in 1988, O&S is headquartered in Dungannon, Northern Ireland, employing over 360 people between its purpose built manufacturing site and its trade counter near Dublin. Through significant historical investment in plant and machinery, O&S offers customers the highest quality bespoke MTM kitchen and bedroom door solutions across a wide range of door types and with unsurpassed lead times.

The company has expanded rapidly, with revenues of over £35m across more than 1,000 customers, ranging from independent kitchen fitters to wholesalers and distributors across the UK and Republic of Ireland.

Chris Carney, Vice President at Sun European Partners said; “O&S is an exciting company known in the market place for its exceptional customer service, reliability and product quality.

It has traded well through all economic cycles and we believe that, with Sun’s support, there is significant scope to increase market share and build upon the valuable customer relationships.

We look forward to working with the management team on the next stage of O&S’s growth.”

Peter O Donnell, Director at O & S Doors said; “We are delighted to make this announcement and we believe this acquisition will further help develop the company and strengthen its offering in the marketplace. Our company has for many years been committed to investing in the local marketplace and building a future not only for the company but also for the workforce

who have supported us through our growth and development to date.

We believe this acquisition will enhance the opportunity for the company to continue to develop for many years to come.”

Sun European Partners has significant experience making acquisitions in the UK. Among its affiliated portfolio companies it has a number of leading businesses including; Dreams, the U.K.’s leading bed and mattress specialist; Flamingo Horticulture, a vertically integrated horticulture business; Bonmarché, one of the UK’s largest value retailer focused on selling affordable, quality womenswear in a wide range of sizes to women over 45 years old; and American Golf, the largest golf retailer in the UK.

Appleby Bermuda Advised Triton on its USD 8.7BN Merger with Tal International Leading offshore law firm Appleby acted as Bermuda counsel to Triton Container International Limited (TCIL) in its merger with TAL International Group, Inc., a NYSE-listed, US company (TAL).

The transaction has created the world’s largest lessor of intermodal freight containers and chassis.

The combined business will have USD8.7bn in revenue generating assets and an estimated global market share of 25%. TCIL and TAL have combined under a newlyformed Bermuda holding company, Triton International Limited (TIL) which is now listed on the NYSE. The deal closed 12 July 2016.

Appleby advised on all Bermuda aspects of the transaction, working closely with US counsel and TCIL to identify potential challenges and devise solution-driven strategies.

“This matter was innovative and complex as it involved a listed US company and a Bermudian company coming together through two separate mergers (one US and one Bermuda) under a single newly

formed Bermuda parent company that is now listed on the NYSE,” said Steven Rees Davies, a Bermuda-based Appleby partner who led the firm’s deal team. Rees Davies was assisted

by Senior Associates Sally Penrose and Gary Harris, Associates Tiffany Boys and Shannon Cann, and Dispute Resolution partner John Wasty.

TIL is the world’s largest lessor of intermodal freight containers and chassis. With a container fleet of nearly five million twenty-foot equivalent units (TEU), TIL’s global operations include acquisition, leasing, re-leasing and subsequent sale of multiple types of intermodal containers and chassis.

Avignon Capital Acquires Second Berlin UM Spannwerk Avignon Capital, the European property investment company, has added to its German portfolio through the acquisition of the Umspannwerk Prenzlauer Berg (“Ampere”) building, which is strategically located in Berlin’s Prenzlauer Berg district.

This unique listed property built in 1926 represents the early 20th century German industrial architecture and is a former electricity transformer station (“Umspannwerk”). In 2010 the building was converted to offices, retaining the character of the building.

It is currently split into five main areas, totalling 11,842 sq m (127,466 sq ft) of lettable office and event space, and is occupied by nine tenants, primarily in the technology start-ups industry.

Ampere’s location in Prenzlauer Berg is widely regarded as a ‘tech-cluster’, and is becoming increasingly popular with young, creative companies and professionals, particularly startups, in the technology, media, and telecommunications (TMT) sectors.

Companies already located in the area include, Twitter, Soundcloud and Uber.

The Ampere building is the sister building to the Umspannwerk Kreuzberg, which Avignon acquired in Q1 2015. Following this acquisition, Avignon Capital has now united the two Umspannwerks, both designed by renowned Berlin architect Hans Heinrich Müller, under one umbrella.

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iDEAL BRIEF Since the acquisition of the Umspannwerk Kreuzberg last year, and through intensive asset management, Avignon has repositioned it to become one of the most renowned and demanded office buildings for the TMT sector in Berlin. Avignon will apply a similar asset management strategy to the Ampere building, with plans to rebrand the property, invest significant capital into improvements, lease out vacant space, and create a highly desirable work environment and sustainable community.

Clive Nichol, Director of UK and European Investment, Avignon Capital, said: “Umspannwerk Prenzlauer Berg is our third acquisition in the city and has again demonstrated our ability to close off market transactions that would be in huge demand if openly marketed. This asset is almost identical to our first acquisition in Berlin in Q1 2015, the Umspannwerk Kreuzberg. We are eager to start collaborating with the tenants and reaping the rewards of owning sister buildings in two of Berlin’s most creative locations. We have now reached our initial target of investing 100m into Berlin and intend to add to this in the coming months.”

“This is a building that has been on our radar since the acquisition of Umspannwerk Kreuzberg. I think the architect Hanns Heinrich Müller would be a very happy man now that we have reunited his two greatest creations under one ownership” Stefan Lensche, Associate Director, Savills Immobilien Beratungs-GmbH said: “Avignon Capital, again has demonstrated their deep understanding of the diverse Berlin market. They have maximised investment returns through a specialized asset management strategy, which combines contemporary market drivers with their unique and widely recognized portfolio, making Avignon Capital a highly competitive investor in one of Europe’s most demanded markets. Since 2014 Savills has maintained a strong partnership with Avignon Capital through sharing the same understanding of market conditions.”

The purchaser was advised by Savills Immobilien Beratungs-GmbH and Berwin Leighton Paisner (Germany) LLP. Avignon Capital’s most recent Berlin acquisition, prior to the Ampere building, was the Berliner Union Film campus, located on the border of Berlin’s Tempelhof and Neukolln neighbourhoods. The acquisition of the Ampere building is a continuation of the firm’s innovative strategy of building a portfolio of unique campus-style buildings, which now totals approximately 52,000sq m (558,022 sq ft) of lettable area in Berlin.

Birketts Advises Technology Specialist on Sale Leading law firm Birketts has advised Toplevel Computing (Toplevel) on its sale to Equiniti Group plc (Equiniti), the specialist technology outsourcer. The financial details of the sale were not disclosed.

Toplevel delivers software solutions and secure online case management solutions that are designed to enhance online customer experience. The technology company count a number of Central Government departments and Local Government councils among its core client base, including Ofsted, the Heritage Lottery Fund, and the Legal Aid Agency.

James Allen led the Birketts team which advised on all legal matters. Assistance on the deal was provided by Ed Savory (Corporate), Laura Ing-Beaufils (Corporate) and Karl Pocock (Tax).

Jane Roberts, CEO of Toplevel, said: “We selected Birketts to advise us on all legal matters because of their technology sector experience and reputation for client care. The guidance and support that we received from day one confirmed that we had made the right choice. Straightforward advice, delivered in a no nonsense style.”

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James Allen, Corporate Finance Partner at Birketts, said: “It has been a pleasure working with the shareholders of Toplevel. The management team has built an attractive business with a number of high quality clients and this acquisition will boost Equiniti’s technology-related outsourcing services offering. Toplevel’s offering complements Equiniti’s existing client base of government departments and PLCs which should see it prosper in the years ahead.”

Birmingham Advisors Orbis Partners and Mills & Reeve Advise on UK/French Merger Orbis Partners alongside their international partner Clairfield France, have advised on the merger between Burgundy-based Tournus Équipement and Accrington-based CED Fabrications.

Both businesses operate in the catering manufacturing industry offering complementary products.

Founded in 1910, Tournus Équipement is a management controlled producer of stainless steel professional equipment for the catering industry.

The business is backed by private equity investors MML Capital, UI Gestion and BPI and generate annual revenues of more than 45m in 2015. Advised

by Birmingham-based Orbis Partners, Tournus identified the merger with CED

Fabrications as an opportunity to grow their product portfolio, a strategic decision backed by the wider group Tournus Expansion.

CED Fabrications, founded in 1991, employs around 150 workers from its Accrington headquarters and produces annual revenues of £11.5million. The UK-based business manufacturers refrigerated food displays, patisserie cabinets and food servery counters.

Orbis Partner, Chris Gregory who advised on the deal negotiations and execution in the UK said: “We were delighted to advise on this transaction working with our French Partners in Clairfield International. This is a further demonstration of the strength of our International capabilities in crossborder M&A.” Legal advice to the management team was provided by Peter McLintock at Mills & Reeve Birmingham. Peter commented on the merger: “Orbis and Mills & Reeve have collaborated on a number of occasions to help overseas clients gain a foothold in the UK. The UK’s vote to leave the EU unfolded during the later stages of the transaction, and whilst Brexit caused us a few sleepless nights, ultimately the outcome didn’t affect the merger due to the strong will and dedication of all parties involved.”

Legal advice to CED Fabrications was provided by DLA Piper alongside adviser BDO.

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Black Swan Completes 6.2 Million Fundraising to Rapidly Accelerate Growth

The growth of Black Swan comes at a time when consumer interaction with technology continues to increase and evolve giving consumer brands the opportunity to gain a competitive edge by interpreting consumer data to make business changes. According to Gartner, 90% of all data was created in the last two years, 70% of organisations purchase external data and the market for ‘Advanced Analytical Service Providers’ is already worth $16bn. By 2018, over half of large organisations will compete using advanced analytics and proprietary algorithms.

Albion Ventures join Mitsui and Blackstone to help Black Swan spread its wings

Steve King, CEO and Co-Founder at Black Swan commented: “Black Swan’s seen some phenomenal growth over the last 18 months and this has been reflected in the conversations we’ve been having with investors and clients alike. At the start of the year, it was very straightforward to raise the amount we wanted from Blackstone and Mitsui, but there was an opportunity to add to the round with Albion Ventures to accelerate our plans further.”

Black Swan Data Ltd., the UK’s leading data science and technology company, announced that it has closed its Series B funding, raising a total of £6.2 million. The round sees Albion Ventures join initial institutional investors Blackstone and Mitsui, to help further accelerate Black Swan’s international growth and expansion of its product platform, ‘The Nest’.

Founded in 2011 by Steve King (CEO) and Hugo Amos (CSO), Black Swan has achieved outstanding growth based on its unique capability of applying big data and predictive data science techniques to consumer marketing. It works with many of the world’s leading consumer-focused brands including PepsiCo, Vodafone, Samsung, Disney and Panasonic, to help them think differently about data, technology, their customers and ultimately their own businesses. The company’s exceptional growth rate of 134% CAGR earned it first place in the Sunday Times Start Up Track 2015 and the company topped the 2016 Sunday Times Export Track 100, being the UK’s SME with the fastest growing international sales.

The additional funding will enable Black Swan to further accelerate the development of its proprietary software platform, ‘The Nest’, which provides deep customer insights by linking publicly available data to a customer’s private data, and complete the build out of its senior management team. It has recently made significant progress in this area with the appointment of Jeff Headley as US Managing Director, previously SVP Personalization at Dunnhumby and Simon Davies as Product Director, previously VP Product Management at DataSift.

Steve continued: “We’re at the forefront of this industry opportunity and we’re working with some of the world’s biggest brands to help them not only make sense of the data around them, but use to gain a competitive advantage and better engage with their audiences. It’s fantastic to have Albion Ventures join our corner, helping us to attract amazing talent like Jeff and Simon, develop and scale our technology quicker and move rapidly to capitalise on the market.”

Ed Lascelles, Partner at Albion Ventures says, “We are thrilled to partner Steve and Hugo through our investment in Black Swan. This is an exciting company, with an outstanding team and high profile customers in a high growth market. Businesses that leverage data intelligently will lead the way and Black Swan has the potential to become the leading provider of automated, predictive analytics to the digital marketing sector.”

Jun-ichi Shibuta, General Manager of IT Platform Div, IT & Communications Business Unit at Mitsui & Co., Ltd. commented: “Mitsui is investing in global business innovation across a variety of key business sectors.

We believe that the trend towards predictive data analytics will affect all industries and the way they think about corporate strategy, so it’s logical

that utilising big data will become increasingly more important to maintain and strengthen businesses, which is why we’ve collaborated with Black Swan.”

Headquartered in London, Black Swan services its international client base through offices in Bristol, Exeter, Hungary, Los Angeles, New York, Singapore, South Africa and Toronto and currently has over 240 full time employees.

Browne Jacobs on Completes Sale of Packer Forbes to Four Independent healthcare communications consultancy Packer Forbes has been acquired by Four Communications Group for an undisclosed sum.

Browne Jacobson corporate finance lawyers Nigel Blackwell and Sam Sharp advised Packer Forbes’ Chief Executive Alexa Forbes on the deal.

Founded in 1992 Packer Forbes is an award winning specialist healthcare communications agency based in Chelsea Harbour, specialising in providing public health, public affairs, digital, social media, media planning and buying services to blue chip pharmaceutical clients including Actelion Pharmaceuticals, Gilead Sciences and Novo Nordisk.

The deal will see Packer Forbes rebranded as Four Health Communications, led by Alexa Forbes, and will sit within a new international healthcare grouping, Four Health.

Following the acquisition Four Health will have a 35 strong team and a turnover of £17m pa.

The deal follows on from a spate of acquisitions by Four, including healthcare media planning agency MSA Media (Four MSA) in May 2015, after it secured £10 million of investment

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from the Business Growth Fund and an additional debt facility of £5m from HSBC. Four Communications was formed in 2001 and is a leading independent marketing and communications agency specialising in public relations, public affairs, community consultation, design & digital, advertising & marketing, sponsorship and media planning & buying across a range of sectors including health, property, tourism, culture and sports. With seven offices spanning the UK and the Gulf, the company employs more than 250 staff and has more than 600 clients including Etihad Airways, The Man Booker Prizes, Sotheby’s International Realty, Novo Nordisk and American Express.

Nan Williams, Four Communications Group chief executive said: “Packer Forbes is a fantastic fit with Four and will double our presence in the important health market. They share our culture of delivering excellence for clients and creating an exciting place for staff to grow.”

Chief executive of Packer Forbes, Alexa Forbes said: “I am really excited by the challenge of establishing and evolving the integrated Four Health offering.

Working alongside fellow experts from across the healthcare communications spectrum will be professionally stimulating for the whole team and I genuinely believe we will be able to offer a truly unique service for our clients.”

Sam Sharp, corporate finance lawyer at Browne Jacobson, added: “We are delighted to have acted on this deal for Packer Forbes. As a team we have seen a spike in corporate activity levels in the integrated marketing and communications sector recently which is largely driven by client demand.

“Earlier this year we completed the disposal of Publitek Limited to London listed Next Fifteen Communications Group plc. Other recent deals have included advising co-founders Simon Glover and Nick Stickland on the sale of London based creative agency ODD and acting for founding owners Roger Perowne and Alistair Cunningham on the disposal of 75% of their stake in Morar Consulting Limited to Next 15.”

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Charles Bank Capital Partners Enters into Definitive Agreement with Investcorp to Acquire Polyconcept Charlesbank Capital Partners, LLC, a middle-market private equity firm, announced that its affiliate has entered into a definitive agreement with Investcorp to acquire Polyconcept. Equity for the transaction will be provided by Charlesbank and management, Partners Group and certain other investors. Additional terms of the agreement were not disclosed.

Polyconcept is the leading value-added supplier in the $30 billion promotional products industry. Sourcing products from hundreds of manufacturers, the company then customizes them on behalf of its 35,000 reseller customers and ships the products to end-consumers (typically businesses) located in the United States, Europe and across the world. Polyconcept offers one of the industry’s broadest assortments, with over 25,000 SKUs across hard goods and premium apparel, providing customers with an integrated set of services including product design, global sourcing, digital services, sales tools, order management, customization and next-day shipping.

Josh Klevens, Managing Director at Charlesbank, said that his firm was attracted to the company’s strategic position and its diversification across customers, suppliers, price points and geographies. “Polyconcept is a market leader in both the United States and Europe, with superior customer service and global capabilities,” he said.

“We are very pleased to have the opportunity to partner with the management team to expand the business globally, building on their track record of success and tapping into new opportunities for growth.” throughtargetedinvestmentinM&Aactivity. Bioclinicahasalreadyprovenitsabilityto acquire and integrate businesses successfully, and the Cinven team intends to accelerate the Company’s growth through acquisitions in the space. Cinven is also going to work with management to support Bioclinica’s expansion into Asia, with the help of our portfolio team based in Hong Kong.”

John Hubbard, Ph.D., Bioclinica President and CEO, said: “We are extremely excited about this new partnership with Cinven and see great things on the horizon for Bioclinica. We experienced tremendous growth under our prior ownership and look forward to leveraging the strategic leadership and investment that will come with Cinven. Bioclinica is on a quest to accelerate and bring clarity to clinic al trials, and this move will help us to achieve these goals.”

The transaction is subject to customary approvals. Jefferies LLC acted as exclusive financial advisor to Bioclinica in connection with the transaction.

Maud Brown, Managing Director of Corporate Investment North America at Investcorp, said, “When we acquired Polyconcept, we recognized the company’s potential to become a leading international brand with a global presence. We worked closely with senior management to transform the business into the global leader that it is today, supporting a series of strategic acquisitions and realizing success through expanding into new markets, launching new product categories, building out a key digital presence and implementing significant operational enhancements. We believe that Polyconcept is very well-placed for the future, and we wish management and Charlesbank the best of luck in this new phase of growth.”

“We have had a successful chapter with Investcorp and are thankful for its partnership over the years,” said Gene Colleran, Chief Executive Officer for Polyconcept. “We are excited to forge a new partnership with Charlesbank, which has a long history of joining forces with management teams to grow their businesses. With Charlesbank’s financial support, strategic guidance and significant network of contacts, we look forward to working together to create substantial

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value for the future.”

Subject to the satisfaction of regulatory requirements and other customary closing conditions, the transaction is anticipated to close later in the third quarter of 2016.

William Blair & Company, LLC and Barclays served as financial advisors to Investcorp and fellow investor 3i, and Gibson, Dunn & Crutcher LLP served as legal advisor to the company.

For Charlesbank, Jefferies Group LLC served as financial advisor, with Goodwin Procter LLP acting as legal advisor and PricewaterhouseCoopers advising on accounting and tax issues.

Goldman Sachs Bank USA, RBC Capital Markets and Natixis, New York Branch, have committed to provide the first lien debt financing for the transaction, and GSO Capital Partners LP has committed to provide the second lien debt financing.

Cinven to Acquire Bioclinica International private equity firm, Cinven, announced that it has agreed to acquire Bioclinica, a global provider of clinical trial services and technology to contract research organizations (CROs) and pharmaceutical companies, based in Pennsylvania, from Water Street Healthcare Partners and JLL Partners. The consideration is not disclosed.

Bioclinica operates in a number of high growth areas to improve the efficiency and productivity of clinical trials performed around the world. This is achieved through standardisation, streamlining labor-intensive tasks and implementing technology- enabled solutions. Bioclinica benefits from structural tailwinds such as growing clinical trial activity, increased outsourcing and the adoption of clinical software services.

The Company serves more than 400 pharmaceutical, biotechnology and medical device clients through a network of offices and medical facilities in the U.S., Europe and Asia. Bioclinica has a highly respected management team, led by CEO John Hubbard, with

a long-term vision to grow the business both organically and through acquisitions.

The Cinven healthcare team identified Bioclinica as a compelling investment opportunity based on its direct experience in the global clinical services market through its investment in Medpace, a leading CRO headquartered in Ohio. Cinven took Medpace public in New York earlier this month in a highly successful IPO, having acquired the business in April 2014 for a total consideration of US$915 million.

Commenting on the transaction, Alex Leslie, Partner at Cinven, said: “Cinven’s global expertise, deep industry relationships and investment experience in the healthcare industry, including the CRO sector with Medpace, make us the ideal partner forBioclinica.

This is an excellent opportunity to invest in a leading provider of technology-enabled services to the clinical trial industry with a collection of high growth businesses across the globe. We look forward to supporting John and the exceptionally talented and experienced team at Bioclinica to develop the business in the years ahead.”

Anthony Santospirito, Principal at Cinven, added: “Bioclinica is a very successful business with exciting growth opportunities.

The Company’s strong position in its markets will enable it to grow both organically and John Hubbard, Ph.D., Bioclinica President and CEO, said:

Clearwater International Advises on the sale of European Camping Group to Homair Group Backed by Carlyle Group Clearwater International has advised the owners of Dutch European Camping Group (ECG) on its sale to French Homair Group (HOMAIR), the European market leader of camping holidays.

In 2016, ECG will assist more than 100,000 guests when booking their camping holidays and short family vacations. The majority of holidays sold are camping under ECG’s highend brands, Roan and Go4Camp. ECG currently owns 1,500 mobile homes and 1,000 luxury tents on various highly attractive campsites in Italy, France, Croatia and Slovenia. Also, 3rd party camping holidays are sold on the market leading online platforms www. allcamps.nl and www.go4holiday.nl, which are owned and managed by ECG. HOMAIR’s acquisition of ECG reinforces HOMAIR’s position as the European market leader within camping and the group now manages approx. 20,000 mobile homes and tents across Europe.

“We are extremely excited about this new partnership with Cinven and see great things on the horizon for Bioclinica. We experienced tremendous growth under our prior ownership and look forward to leveraging the strategic leadership and investment that will come with Cinven. Bioclinica is on a quest to accelerate and bring clarity to clinic al trials, and this move will help us to achieve these goals.”

The travel and leisure sector has undergone a wave of M&A activity in recent years as consolidation has been seen across a number of segments.

Key examples within the camping and mobile home space have been HOMAIR’s acquisition of Al Fresco and Eurocamp, and Permira backed Vacalians’ acquisition of Canvas Holidays. We expect to see plenty of interest in the travel space over the coming months, as private equity funds continue to show interest in the sector and trade buyers look to rebalance their portfolios towards higher growth areas such as online or to seek opportunities that arise from the ongoing consolidation.

The transaction is subject to customary approvals. Jefferies LLC acted as exclusive financial advisor to Bioclinica in connection with the transaction.

The sale of ECG was led by Partner, Andreas Lauth, with support from Director, Jonas Angaard Madsen and Associate, Maria Malmborg Christensen.

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iDEAL BRIEF Andreas Lauth, Partner, Clearwater International said: “The Danish owners have, together with the hands-on Dutch management team, build an impressive Pan-European luxury camping business of own and 3rd party camping brands. With this acquisition, Carlyle backed HOMAIR, secures significant synergies in key parts of the value chain.”

Equiteq Advises on Merger of Pmsquare's Australian and Asian Consulting Businesses with Corner Stone Performance Management Equiteq announced that it’s client, PMsquare has merged its Australian and Asian businesses with Cornerstone Performance Management. Equiteq, a consulting sector M&A specialist, acted as exclusive financial advisor to PMsquare.

Both organizations are IBM Premier Business Partners with a focus on the Business Analytics solution set.

However, the primary geographical focus of PMsquare is in Singapore and the Philippines, whereas Cornerstone has traditionally been focused on the Australian market.

PMSquare’s Australian operations will be absorbed directly into Cornerstone Australia in the coming months, whilst the Asian region will retain PMsquare’s branding as part of the Cornerstone Group.

The merged Cornerstone and PMsquare business creates a strong regional player in the Asia-Pacific market, delivering budgeting & forecasting, business intelligence and information management solutions.

Piers Wilson and Hamish Dwight from Cornerstone will head up the combined operations, while Carsten Brandt and Jason Rankin from PMsquare will

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Cornerstone’s ambitious growth strategy in Asia. In doing so, they will be leveraging PMsquare’s established footprint and reputation in the region, as exemplified by the SBR International Business Award for Consulting that PMsquare Singapore have received for the third consecutive year.

Piers Wilson, Director, Cornerstone Group said: “We are extremely pleased to be joining forces with PMsquare.

They have a talented team and combining with them allows us to continue our growth in Australia as well as embark on a more aggressive growth strategy in Asia. Traditionally PMsquare and Cornerstone have concentrated on delivering solutions to different industry segments and regions, so it was a logical step to merge our organizations and take Cornerstone’s solutions to the Asia Pacific market. This dramatically increases Cornerstone’s footprint in the Asia Pacific region and allows us to bring innovative solutions to a broader range of organizations in the region.”

Carsten Brandt added: “Jason and I are very excited to join Cornerstone and continue developing with them an Asian operation with large business opportunities to be delivered from Singapore and the Philippines. I am grateful to Equiteq for the valuable support their APAC team have provided throughout the process, from the preparation phase to the closing of the deal.”

Pierre Briand, Equiteq’s Managing Partner for Australia and New-Zealand commented: “I am delighted to see that since we opened an office in Australia last January, our first deal is a great example of an Australian business having successfully delivered on a growth strategy in Asia. Equiteq APAC is proud to have contributed to this success story for the owners, with more to come through the joining of forces with Cornerstone.”

Fidor Group Acquired

by Group E BPCE • Groupe BPCE , the second largest banking group in France, acquires German bank and fintech pioneer Fidor Group • Fidor’s founder and CEO, Matthias Kröner, remains as its CEO and shareholder

Fidor Group, the German digital challenger bank and fintech pioneer, announced its acquisition by Groupe BPCE , the second largest banking group in France.

Groupe BPCE has signed an agreement with the key shareholders, founders and managers of Fidor Group relating to the acquisition of their equity interests in the company.

Fidor will capitalise on the support of Groupe BPCE to enable a strong international expansion, continue the development of its proprietary digital banking technology, and strengthen its presence in Europe.

Following the deal, Fidor will remain as an independent business. Founder and CEO Matthias Kröner will continue as the Chief Executive of Fidor, keeping a shareholding in the bank and leading its business strategy, development and international expansion as before.

Fidor Group will also adjust its internal structure, with the new ‘Fidor Holding Group’ acting as a parent company to the rest of Fidor’s business offerings - Fidor Bank (www.fidor.de) , the challenger bank, and Fidor AG (www. fidor.com), the digital white-label technology solution provider for digital banking and any future corporate offerings.

Matthias Kröner, CEO and founder of Fidor, commented: “This move will allow Fidor to continue its international expansion and drive the development of our innovative digital technology even further. In a world of increasing volatility, it is important to be member of a strong group and this transaction is strongly improving our overall financial sustainability. We are excited to have such a well-established partner as BPCE in the financial world that recognises the need for an entrepreneurial approach to banking and innovation.”

Kröner continued: “With a simplified shareholder structure, Fidor’s senior team, including myself, will be able to focus on expanding our core business offering and explore more market opportunities all over the world” François Pérol, Chairman of BPCE, added: “This operation constitutes a key step in the acceleration of the digital transformation of our group. It further demonstrates our commitment to innovation, to developing a customer centric approach enabled by digital banking technology, and to be more involved in the digital and mobile

iDEAL BRIEF banking field. We are very proud and happy to welcome Fidor’s teams, communities and clients into Groupe BPCE.” The closing of the transaction will be subject to customary regulatory change of control approval from the European Central Bank, the BaFin and upon clearance from the German competition authority, expected in Q4 2016.

The deal was facilitated on behalf of Fidor Group by Heussen Law and Zelig Associates.

Founded in 2009 by its CEO Matthias Kröner, Fidor is one of the world’s first “fintech” banks, pioneering the collaboration between traditional financial services and technology businesses. Fidor offers a unique proposition with its collaborative banking experience, where 350,000 community members work together to help build the bank’s services and products.

Fidor has also developed its own proprietary technology platform – the Fidor Operating System (fOS) – which enables open, fast and advanced API banking. This week, Telefónica also announced the launch of ‘O2 Banking’, its mobile-only bank account, in partnership with Fidor.

Gattai Minoli Ago Stinelli & Partners Advised Cerved on the Acquisition of Fox & Parker Italian corporate and financial law firm Gattai Minoli Agostinelli & Partners advised Cerved Information Solutions in the acquisition, through its subsidiary Cerved Group, of the business information going concern of Fox & Parker.

Since 1996, Fox & Parker has been focused on the development of value added sector risks analysis, data integration services through proprietary systems and customized business information.

Gattai Minoli Agostinelli & Partners assisted Cerved with a team formed by Cataldo Piccarreta (partner), Federico Bal (senior associate), Andrea Cerulli Irelli and Flavia Quitadamo (associates).

Gowling Wlg Advises Star on 50 Million Acquisition of Synergy Health Management Gowling WLG’s Corporate team, led by partner Ian Piggin, has advised client STAR Capital Partners (STAR) on its acquisition of Synergy Health Management Services Limited (SHMS) from Synergy Health (UK) Limited.

SHMS provides a range of sterile linen and laundry management services to hospitals and other healthcare providers throughout the UK including NHS Trusts, private hospitals, ambulance Trusts and healthcare and community Trusts.

Corporate partner Ian Piggin fielded a broad team of experts to assist STAR in its £50 million buyout. The corporate aspects of the deal were handled by Ian and principal associate Neil Hendron. Director Anna Colley led on the property aspects,

principal associate Jennifer Lewis and associate Pete Miles provided pensions advice. Partner Mike Murphy handled tax and the transitional services arrangements were led by senior associate Alexi Markham, with trade mark licensing negotiations being handled by partner Kate Swaine and senior associate Michael Carter. The Gowling WLG Transactional Services team led by director Greg Dunn carried out legal due diligence.

Partner Ian Piggin said: “This was a multi-faceted deal and necessitated a lot of involvement across the board.

Fortunately, our cross-team approach meant that we could deal with the challenges in a timely and efficient manner, handling multiple aspects of the buyout simultaneously and delivering the deal to deadline. STAR were a pleasure to work with and we hope to advise them further in the future. This is the first acquisition made

by STAR’s third fund and we were delighted to have the opportunity to advise on its first investment.”

Various members of the team undertook complex negotiations to ensure the buyout went to plan. As a subsidiary of the wider Synergy and Steris group, the transaction also had to deal with arrangements relating to extracting SHMS from that group structure and being able to operate on a standalone basis. Anna Colley (property), Jennifer Lewis (pensions) and Kate Swaine (intellectual property) were all involved, often on a parallel basis, in negotiating the arrangements in relation to this extraction and the complex issues which can arise in these scenarios.

Synergy was owned by US-listed company Steris plc, and the team was involved in additional work to assist Steris in delivering the deal by the required deadline.

Paul Gough, managing partner at STAR, said: “The Gowling WLG team provided timely and commerciallyminded advice throughout the transaction in a clear and constructive manner. It was a great team effort to deliver the transaction and we are very much pleased with the result.”

Gowling WLG’s 60-strong Corporate team has extensive experience across the full spectrum of corporate advice, including equity capital markets on the AIM and Full List, investment funds, private equity and both public and private mergers & acquisitions.

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Heidrick & Struggles Acquires Distinguished London-Based JCA Group JCA Group has premium reputation in Boardrooms; will serve as catalyst for growth in premium, senior-level executive search and advisory services for Heidrick & Struggles in UK Heidrick & Struggles (Nasdaq: HSII), a premier provider of executive search, leadership consulting and culture shaping worldwide, announced that it has acquired JCA Group, a Londonbased executive search advisory firm.

JCA Group is led by Founding Partners Jan Hall and Emma Fallon, and has 40 employees, including eight partners.

“JCA Group is the preeminent Board and CEO recruiting boutique in the UK with an outstanding reputation as a senior talent and leadership advisor— especially among the FTSE 100 and 250,” said Tracy R. Wolstencroft, Heidrick & Struggles’ President and Chief Executive Officer.

“This acquisition further accelerates the growth of our global business and immediately enhances our brand in the boardrooms and C-suites across the UK.” “Jan is a dynamic leader who has surrounded herself with the most diverse and talented consultant team in the UK,” Wolstencroft said. “She has instilled a client focus within the JCA Group that is highly consultative and advisory, and a culture that is open, collaborative and very teamoriented.”

Hall becomes Chairman in the UK for the newly combined Heidrick & Struggles/JCA Group. In this capacity, she will lead the CEO & Board Practice in the UK and serve as co-head of the firm’s CEO & Board Practice in Europe, with Sylvain Dhenin.

“All the JCA Partners are thrilled with this opportunity to continue to pursue our passion of serving clients in the Boardroom while expanding our market impact as part of the global Heidrick & Struggles platform,”

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Hall said. “We look forward to bringing a broader suite of leadership consulting and culture shaping services to our existing clients, while also serving new clients as they seek transformational leaders in these complex and uncertain times.”

The United Kingdom is second only to the United States as a market for executive search globally, according to 2015 data collected by the Association of Executive Search Consultants.

Heidrick & Struggles expects demand in the UK for the most senior levels of executive search Board directors and C-suite executives to remain strong, despite the recent vote by the UK to leave the European Union. “In uncertain operating environments, the need for senior leadership is greater than ever,” said Wolstencroft.

JCA Group has been a leader in addressing gender disparity among Boards, as a policy advocate and in placing women on Boards in both non-executive and executive roles.

One in three of JCA Group’s recent appointments to FTSE 100 and FTSE 250 Boards have been female.

H.I.G. Capital Agrees to the sale of The International School of Europe Group H.I.G. Europe (“H.I.G.”), the European arm of global private equity firm H.I.G. Capital, announced that it has entered into a definitive agreement with Inspired relating to the sale of the International School of Europe Group (“ISE”). Closing of the transaction is expected in mid-September 2016.

Terms were not disclosed.

ISE, founded in 1958 by the Formiga family, is a leading group of schools in Italy with over 1,800 local and expatriate students between the ages of 3 and 18 years old in Milan, Modena, Monza and Siena. ISE is one of the leading IB schools in Europe.

Raffaele Legnani, Managing Director of H.I.G. and head of H.I.G.’s activities in Italy, commented: “Paolo and Franco Formiga have been terrific partners for H.I.G. on this project and have helped

us deliver an outstanding result for H.I.G. and its investors”.

Paolo Formiga stated: “We would like to thank H.I.G. for their assistance in the development of ISE and we are excited to join the Inspired community of schools that will provide additional opportunities of growth for ISE’s students and teachers”.

Nadim M. Nsouli, Founder & Chairman of Inspired, added: “We look forward to welcoming the students, parents and staff of ISE into our family of schools.

We believe this represents an exciting development for both Inspired and ISE and look forward to working with the ISE leadership team to build upon the schools’ impressive history of providing families in Milan, Modena, Monza and Siena with world class international education”.

IK Investment Partners to Acquire Ellab A/S Investment Partners (“IK”) is announced that the IK VIII Fund has reached an agreement to acquire Ellab A/S (“Ellab” or “the Company”), a leading manufacturer of thermal validation solutions, primarily used for validation for food and pharmaceutical industries, from a group of private investors. Financial terms of the transaction are not disclosed.

Founded in 1949, Ellab is a leading global supplier of solutions for measuring, recording, monitoring and validating critical parameters of thermal processing, selling its products in over 65 countries across the globe. The Company offers a wide product range of high-precision systems for temperature, pressure and humidity monitoring and validation based on either data loggers or thermocouple based wired instruments.

Ellab’s products are used by the pharmaceutical and food industry as well as hospitals, where accurate and complete documentation is essential.

“Ellab contributes to increase consumer safety, and we take pride in quality. We are looking forward to partnering with IK Investment Partners to support our next stage of growth and innovation.

With their industry experience and financial resources, we are confident

iDEAL BRIEF that they are the perfect partners to further our success,” says Peter Krogh, CEO of Ellab.

“With its accurate, versatile and reliable solutions, Ellab holds a unique market position. The Company is known worldwide as a leading manufacturer of complete instrumentation, software, probes, fittings and accessories for thermal validation solutions, and we believe there are significant growth opportunities ahead. Ellab has a strong culture of innovation and collaboration, and we are looking forward to support Peter and his team to continuing to develop thermal validation systems and services of world class standards,” says Alireza Etemad, Partner at IK Investment Partners.

Rothschild & Co acted as financial advisor and Bruun Hjejle as legal advisor to IK Investment Partners.

IK Investment Partners to Sell Vemedia to Charterhouse Capital Partners LLP IK Investment Partners (“IK”) announced that the IK 2007 Fund has reached an agreement to sell Vemedia Group (“Vemedia” or “the Group”), one of Europe’s leading producers and distributors of over the counter (OTC) drugs, food and medical devices, to an entity ultimately owned

by Charterhouse Capital Partners LLP (“Charterhouse”) and which also owns La Coopération Pharmaceutique (“Cooper”), a leading French OTC drug manufacturer and distributor. The parties have agreed not to disclose the financial terms of the transaction.

The combination of Vemedia and Cooper will create a European market leader in the OTC drugs sector. The two businesses are highly complementary, and will be well positioned to lead the further consolidation of the European OTC drugs industry.

Vemedia, the market leader of OTC drugs in the Netherlands, has been owned by the IK 2007 Fund since December 2012.

With IK’s support, the Group has invested heavily behind key brands Valdispert (calming & sleeping) and Excilor (medicated foot care).

Additionally, Vemedia entered the French market, expanded its export business, and completed six add-on acquisitions, of which Oenobiol and Stardea (both completed during 2016) are the most notable.

“During IK’s ownership, Vemedia has shown an impressive growth, both organic and through add-on acquisitions, doubling its sales and substantially expanding its product offering.

It has been a pleasure working with Yvan Vindevogel, Chairman of Vemedia, Rob and his team, and we are confident that Vemedia will continue its growth trajectory together with Charterhouse and Cooper,” said Remko Hilhorst, Partner at IK Investment Partners and advisor to the IK 2007 Fund.

“We see a good cultural and commercial fit between Cooper and Vemedia. The two businesses are highly complementary, with Cooper having a strong footprint in France, and Vemedia across the Netherlands, Belgium, France, Italy, Spain, Portugal and Hong Kong. Together we will leverage our strong market position to pursue industry consolidation opportunities,” said Francis Doblin, CEO of Cooper.

“Recent organic initiatives and acquisitions have shown that Vemedia is a platform for growth and consolidation in the European OTC drugs market, providing a strong rationale for the acquisition. Over the coming months we will work with both management teams to integrate the businesses and identify further consolidation opportunities,” said Charterhouse.

“Thanks to the support from IK and the hard work of our employees, Vemedia has expanded significantly at the same time as improving the underlying performance of the business during the last four years. We are pleased with the opportunity to cooperate with Cooper under Charterhouse’s ownership, which will enable our continued growth

and international expansion,” said Rob Drenth, CEO of Vemedia.

Completion of the transaction is subject to customary approvals.

Investcorp Announces the Sale of Tyrrells • Sales and EBITDA more than doubled in three-year ownership • Transaction is Investcorp’s ninth successful exit in Europe in the last twelve months nvestcorp, a global provider and manager of alternative investment products, announced it has agreed to the sale of Crisps Topco Limited (“Tyrrells” or “the Company”) to Amplify Snack Brands, Inc. (“Amplify”) (NYSE:BETR) for an enterprise value of £300m.

Founded at Tyrrells Court Farm, Herefordshire, in 2002, Tyrrells is a premium manufacturer of hand-cooked potato and vegetable crisps, popcorn and other savoury snacks. Tyrrells has successfully built on the brand strength of its core product offering to diversify into other premium snack categories, including popcorn, tortilla chips and vegetable crisps.

Investcorp acquired Tyrrells in August 2013 for £100m and has overseen an extensive transformation of the Company in which sales and EBITDA more than doubled and employee numbers grew by over 70% globally, 30% of which were new employee positions created in the UK. International markets now account for close to 40% of sales compared to 20% three years ago.

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Under Investcorp’s ownership, Tyrrells has grown organically and through acquisitions in Australia and Germany, further expanding its healthy snacking portfolio into organic and gluten-free products, creating a truly diversified premium snacks player. Investcorp’s knowledge and expertise in bringing together family run businesses proved instrumental in the acquisitions, further expanding Tyrrells’ global reach.

Investcorp also oversaw significant investments in Tyrrells’ manufacturing capacity and brand. Completion of the sale is subject to competition clearance.

Carsten Hagenbucher, Managing Director in Investcorp’s European Corporate Investment team, commented: “Tyrrells is a great British success story which we’ve been delighted to play a part in. Three years ago we saw the opportunity to export a fantastic domestic brand and that has been our focus, through two transformative acquisitions - both of which were proprietary deals - and by driving growth in the UK and many international markets. We wish David and his team the best of luck in this new chapter.”

David Milner, Chief Executive of Tyrrells, said: “From the outset when Tyrrells was acquired by Investcorp we projected ambitious growth strategies and that’s exactly what we have delivered. It has been a hugely successful partnership resulting in a business which is in great shape for further international expansion.”

Investcorp’s sale of Tyrrells is its ninth exit in Europe in the last twelve months, following the sale of GL Education to Levine Leichtman Capital Partners; the sale of CSIdentity to Experian; the flotation of Asiakastieto on Nasdaq Helsinki; the sale of Denmark’s Icopal to GAF; the sale of N&W to Lone Star Funds; the ultimate full sale of Skrill Group to Optimal Payments (now renamed Paysafe Group plc); the flotation of Sophos Group plc on the London Stock Exchange and the complete exit of a minority stake in spare part distributer, Autodistribution.

Investcorp was advised on the transaction by Houlihan Lokey with Shearman & Sterling LLP acting as legal counsel. Jefferies LLC served as financial advisor and Goodwin Procter LLP acted as legal counsel to Amplify.

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Investcorp to Acquire United Kingdom's Leading Cyber Security Service Provider Nebulas Investcorp, a global provider and manager of alternative investment products, announced that it has, together with its portfolio company SecureLink Group NV (“SecureLink”), acquired the United Kingdom’s largest independent cybersecurity service provider, Nebulas Solutions Ltd (“Nebulas” or the “Company”).

Founded in 2001 in London and employing 50 staff, Nebulas provides a broad range of IT security products and services including managed security services and cyber threat intelligence to predominantly mid to large enterprises in the United Kingdom.

Combined with the recent acquisition of Scandinavia’s Coresec Systems (“Coresec”), SecureLink and Nebulas will operate across six countries in Europe, employ over 550 members of staff and generate more than 235 million in revenue.

Carsten Hagenbucher, Managing Director in Investcorp’s Corporate Investment team in Europe said: “As a combined group SecureLink, Coresec and Nebulas will form the second largest cybersecurity player in Europe providing best in breed products suited to a wide range of industries. The Nebulas acquisition gives us access to new markets, increased scale, a diversified product offering and a wealth of new talent and expertise. With this second add-on acquisition we believe we are one step closer to forming the leader in pan-European cybersecurity and we think Nebulas is the perfect fit as we continue building upon this goal.”

Over the last 12 months, Investcorp’s European Corporate Investment team has witnessed its most

active investment period since the inception of the Firm, having signed five new deals and successfully exiting nine portfolio companies. Just under two months ago, Investcorp announced the acquisitions of Coresec and leading luxury Italian menswear brand Corneliani. Recent exits include the sale of Tyrrells to Amplify, the sale of assessment provider GL Education, the initial public offering of Asiakastieto on Nasdaq Helsinki, the sale of Icopal to Standard Industries, the sale of N&W to Lone Star Funds, the full sale of Skrill Group to Optimal Payments (now renamed Paysafe Group plc), the IPO of Sophos Group plc on the London Stock Exchange and the complete exit of a minority stake in Autodistribution.

Investcorp was advised on the transaction by DC Advisory with Gibson Dunn acting as legal counsel.

Kettle Foods Takes Full Ownership of Leading Premium Snack Brand, Metcalfe's Skinny Kettle Foods, maker of Europe’s favourite premium crisp, KETTLE® Chips, has completed the acquisition of Metcalfe’s skinny Ltd, by acquiring the remaining 74% of their business to become full owners of the brand.

Kettle Foods had initially acquired a 26% stake in the business in January this year.

Metcalfe’s skinny popcorn® is the UK’s leading premium popcorn brand which also incorporates a fast growing range of corn and rice cake products.

The UK Popcorn market is one of the most exciting categories within the UK snacks market, growing by 45% over the last 2 years*, and is set to grow further as consumers increasingly seek out lighter snacking options. The

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addition of leading premium popcorn brand, Metcalfe’s skinny popcorn®, to the UK’s leading premium crisp brand, KETTLE® Chips, reflects the ambition of the Kettle Foods business to evolve into a more widely based premium snacking leader and further extends the Company’s better-for-you strategy.

Ashley Hicks, Managing Director of Kettle Foods, commented ‘We are delighted to acquire Metcalfe’s skinny popcorn®, which is an incredibly innovative premium brand and which has built such a strong foundation in the UK market. We now have the opportunity to extend the brand’s success story with further innovation and brand development, and as a result drive even stronger growth in this exciting category’.

Julian Metcalfe and Robert Jakobi, previous co – owners of Metcalfe’s skinny commented ‘We are very excited about the opportunity for the Metcalfe’s skinny popcorn® brand to expand with the support and expertise of the Kettle Foods organisation.

This is a unique opportunity to bring the best brains in snacking together less than one roof to truly give Metcalfe’s skinny the international opportunity it deserves. This is a positive step on many levels that we know will not only showcase the brand’s potential but will benefit our customers in the long term too.’

Letterone and Freedom Pop Announce Strategic Partnership LetterOne (L1), the international investment business, headquartered in Luxembourg, announced a strategic partnership with

FreedomPop, the disruptive US based mobile provider, based in California.

This announcement follows L1’s receipt of clearance from the Committee on Foreign Investment in the United States (“CFIUS”) to complete its $50 million investment in FreedomPop, announced earlier in the year, to assist and accelerate FreedomPop’s international expansion.

L1 Technology, which aims to invest overall US$2–3 billion in mid-to-latestage technology growth opportunities, is investing in, and looking for strategic partnerships with, leading digital pioneer companies around the world.

It is looking for the next generation of OTT customer’s propositions. It recently announced a $200 million investment in Uber.

FreedomPop, one of the fastest growing and most innovative mobile service providers in the world, extended its disruptive “Freemium” business model from the US to the UK and Spain earlier this year.

Having successfully proven the capability to deliver free mobile service beyond the US, FreedomPop plans to open an additional 8 markets by the end of next year with the continuation of this fast rollout across Asia, Europe and Latin America thereafter.

L1 is partnering with FreedomPop to extend its deep operating relationships and knowledge of emerging markets and telecoms which will be crucial in helping FreedomPop achieve its global targets. In addition, L1 is assisting FreedomPop to better compete in an increasingly digital and OTT centric world.

“This partnership illustrates the value and impact that L1 Technology can have, particularly versus traditional private equity and later stage venture capital investors,” said Stephen Stokols, FreedomPop’s CEO. “L1 is not only capable of bringing significant capital, but also delivering valuable and accretive strategic partnerships for digital pioneer companies around the world”, he said.

“L1’s expertise will be used to accelerate our international

expansion,” added Stokols. “L1’s unique ability to open new markets and new growth opportunities will deliver real value for us beyond what any typical late stage investor could do,” he added.

Commenting on the investment Alexey Reznikovich, L1 Technology’s Managing Partner, said: “FreedomPop are true digital pioneers.

It is disrupting the businesses of traditional mobile carriers by giving people ways to use mobile devices free of any call charges. As the telecoms market consolidates, and technologies advance, it’s important to remain ahead of the curve in terms of new customer propositions”.

Modern Energy Management Brings Thai Wind Investments to Fruition Emerging market specialists work with Gunkul Engineering to secure financing for and develop three new sites totalling 170MW Modern Energy Management (MEM), a specialist in delivering project lifecycle certainty to renewable energy developers, financiers and investors, has been working with Gunkul Engineering, a leading Thai renewable electricity producer, to bring three wind projects to financial close. Once complete, the three wind farms will contribute 170MW to the grid – nearly doubling Thailand’s total wind energy capacity.

MEM served as Owner’s Representative on the 60MW Wayu, 60MW Greenovation and 50MW Korat Wind projects, helping to bring the projects through late stage development to financial close. Furthermore, the firm is now acting as Owner’s Engineer for construction on the Wayu project, and will fill the same role on the Korat Wind project in the near future.

Over the next two decades, Thailand’s energy consumption will increase by up to 75%. At the same time,

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iDEAL BRIEF however, much of its current energy infrastructure is set to be decommissioned, while its natural gas reserves are due to run out by 2021.

Faced with these energy supply and demand challenges, Thailand is aiming to secure 25% of its energy from renewable sources by 2036. As part of these efforts, over the past five years the country has dramatically increased its wind power capacity – from 5.6MW in 2010 to 234.5MW last year.

However, in order to realise its goals, it will be necessary for Thailand to make the most of its available wind resource, and take advantage of the latest technology in order to do so.

Consequently, and as all three projects fall in areas of medium to low wind speeds, the wind farms will make use of innovative new IEC Wind Class 3 turbines, which are specially designed to maximise efficiency and output in limited wind regimes. By combining a larger rotor with the ability to select from a range of taller tower heights, these low wind turbines boost performance and will ensure that each project is optimised to maximise generation.

MEM’s work on each of these projects demonstrates the advantages of enlisting an independent partner with experience and expertise in new and emerging markets to deliver investment-grade projects, instil investor confidence and bring projects to financial close.

As part of its work on the three projects, MEM offered contract advisory services, served on project tenders and provided project management services related to the financial close process.

The Wayu project is due for completion by the end of 2016, while the Greenovation and Korat Wind projects are set to be commissioned by the end of 2017 and 2018, respectively. They represent a significant step towards meeting Thailand’s ambitious energy targets.

“These projects illustrate how cuttingedge technology continues to be embraced in Thailand and the wider Asian market,” commented James Munro, Project Manager at Modern Energy Management.

“Incorporating the latest low wind turbines ensures that these wind farms will be able to maximise energy generation even in low wind conditions. In turn, they will deliver long-term, steady returns to project investors.”

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“Our success in completing the financing of these flagship projects shows that Thai wind is truly an investment-grade prospect,” said Janpon Ngamaroonchote, Vice President of Strategic Planning and Investment at Gunkul Engineering.

“Modern Energy Management’s understanding of the market in Thailand, along with its international experience helping to secure financing for early utility-scale developments has been a significant asset – and we look forward to continuing our work with the team throughout construction.”

Since 2013, MEM’s team has delivered specialist work in over twenty countries, and has been involved in Thai wind since the development of the first utility-scale wind projects. The firm helps to unlock significant financial and operational performance in emerging markets, and has a growing presence across Asia and Africa.

Moorhead Group Acquired by New Owners • Allied Irish Bank (GB) structure undisclosed funding package to support the acquisition.

• Jonathan Prutton ,Philip Horsnall and Colin Fitton acquire The Moorhead Group Yorkshire-based construction firm the Moorhead Group has been acquired by Jonathan Prutton and Philip Horsnall of Croxden Capital Partners in partnership with the existing MD, Colin Fitton in an undisclosed deal. Funding to support the sale has been provided by Allied Irish Bank (GB).

Located on Lower Wortley Road in Leeds, the Moorhead Group consists of two operating businesses, Moorhead Excavations and Moorhead Demolition.

Moorhead Excavations was established in 1986 by Ken and Wendy Moorhead as a family owned private company.

The company provides a variety of services to the construction industry including Bulk Excavation, Road Haulage, Tipping Facilities, Crushing & Processing, Aggregates Supply and Site Remediation. Moorhead Demolition was established in 2002 to work independently and in conjunction with Moorhead Excavations to provide a ‘one-stop shop’ for Site Preparation works.

The current owners, Ken and Wendy Moorhead, are exiting the business to retire. Jonathan Prutton and Philip Horsnall will become Non-Executive Directors of the company and will retain the current Managing Director Colin Fitton, who will continue in his role at the helm of the business.

Moorhead Group employs 50 people and has a turnover of £8m.

New owner Jonathan Prutton explains: “Moorhead Group has been trading very strongly and we are very optimistic about its future growth. The rise of the Northern Powerhouse and resurgence in the construction sector makes this a very exciting time to be working in the region and this industry sector. Colin has worked for the firm for over 30 years and we are pleased that he will continue in his role as MD of the group.

This means it is very much business as usual for Moorhead’s customers and suppliers. Philip and I are delighted to have acquired the business and look forward to growing it through further acquisitions and organic growth to the benefit of our customers and the whole Moorhead team” “We are very grateful to Mark Billington and Matthew Fannon at Allied Irish Bank (GB) who have worked hard to support this deal particularly when the majority of other institutions showed little appetite. It was gratifying that they took time to understand the business and have put a funding package in place that will allow the business to grow while not putting it under undue financial pressure.”

Mark Billington, Head of the Leeds Business Centre and Senior Relationship Manager at Allied Irish Bank (GB) and his colleague Matthew Fannon, Relationship Manager worked together on this deal. Advisers included Patrick Abel at Hart Shaw in Sheffield, Dan McCormack at Lupton Fawcett Dennison Till and legal advisers to the purchaser - Mike Copestake at Freeths.

Mark Billington Allied Irish Bank (GB) said: “The Moorhead Group is a well established and strong performing business and we are delighted to assist Jonathan and Philip to acquire the business and secure 50 jobs in the Leeds construction sector. They are both focused on growing further the business and working with Colin Fitton to achieve future success.

Our straight forward approach to structuring the funding package has been beneficial for all parties involved in the transaction to ensure they can concentrate on finalising the completion of the deal.”

MUFG Investor Services to Acquire Rydex Fund Services From Guggenheim Investments MUFG Investor Services, the global asset servicing group of Mitsubishi UFJ Financial Group, and Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, announced that they have entered into an agreement in which MUFG Investor Services will acquire Guggenheim’s 1940-Act mutual fund administration business, Rydex Fund Services. The transaction is expected to close in the fourth quarter of 2016, subject to regulatory approvals and customary closing conditions.

When consummated the deal will complete MUFG Investor Services’ full service offering for investment managers, adding regulated 1940 Act mutual fund and exchange traded fund services expertise to a comprehensive service proposition, which spans single manager, fund of hedge fund, private equity and real estate funds, pension funds and traditional asset managers.

The acquisition when completed will add $52 billion to MUFG Investor Services’ assets under administration (AuA) bringing total AuA to $422 billion. The assets serviced by Rydex Fund Services primarily consist of Guggenheim and Rydex branded mutual funds, exchange-traded products and closed-end funds, for which Guggenheim Investments will continue to serve as investment advisor.

Junichi Okamoto, Group Head of Trust Assets Business Group, Deputy President, Mitsubishi UFJ Trust and Banking Corporation said: “The acquisition of Rydex Fund Services will strengthen our position as an industry-leading administrator and is an important part of our commitment to supporting the growth of new clients and extending our services to existing clients. This deal will add capabilities

iDEAL BRIEF which will allow us to respond more dynamically to our clients’ changing needs, enabling them to fully realize new market opportunities and support their growth ambitions.”

John Sergides, Managing Director, Global Head, Business Development and Marketing, MUFG Investor Services, said: “Demand for liquid alternative strategies has risen significantly in recent years as retail investors recognize the return potential and diversification benefits relative to traditional asset classes.

Alternative fund managers are increasingly establishing ‘40-Act fund structures to access this growing market. We recognize the challenging environment our clients face and continue to enhance our offering to support the strategies that managers must deliver, both now and in the future. Our complete offering will allow us to become the partner of choice for alternative fund managers of all sizes, strategies and structures.”

Nikolaos Bonos, Head of Rydex Fund Services, commented: “MUFG Investor Services will provide new opportunities for us to extend and enhance our ‘40-Act fund administration experience for the benefit of our current and future clients. Aligning our team within the MUFG Investor Services group will enable us to respond to rising demand for liquid alternatives with a comprehensive service proposition that supports the development of investment managers’ businesses.”

Upon completion, MUFG Investor Services will be acquiring all of Rydex Fund Services’ business and intends to provide a seamless transition for its employees and clients.

Terms of the deal are undisclosed.

Northedge Backs MBO of £55M Logistics Firm NorthEdge Capital has invested an undisclosed eight-figure sum for a significant majority stake in Abbey Logistics Group, to support an MBO led by CEO Steve Granite.

The Liverpool-headquartered niche logistics provider specialises in the transportation of bulk food products in liquid and powder tankers across the UK and Northern Europe. The investment represents NorthEdge’s fourth deal this year and is the second investment from the recently raised £300m Fund II. Abbey Logistics was set up more than 25 years ago by the Lucy family, specialising initially in the liquid food ingredients transportation market, with more recent diversification into the bulk powder market.

Long-standing relationships with a number of pan-European blue chip customers have been built up over the years enabling Abbey to grow to become a market leader in the food ingredients transportation market.

The company has demonstrated strong year-on-year growth over the past five years with turnover more than doubling from £20m to over £55m in the current financial year following a number of acquisitions and large contract wins. The business employs over 450 staff and operates from nine UK sites including Wirral, Hull, Manchester, Knowsley, Middlewich and London.

NorthEdge, which currently has £525m of funds under management, focuses on northern investments from offices in Manchester and Leeds. The funding will support the business as it continues to expand in an industry worth around £55bn to the economy.

Abbey will target growth with new and existing customers, as well as exploring a number of acquisition opportunities that management has been progressing in parallel to the MBO with support from NorthEdge Capital.

The deal will provide a full exit for the founding family and the business will continue to be led by Steve Granite as Chief Executive and Dave Coulson as Commercial Director.

NorthEdge Director Jon Pickering led the transaction, with support from Investment Manager Dan Matkin and Portfolio Director Ben Wildsmith.

Private equity experienced chairman Ian Kelly joins the board at completion.

The board will be further strengthened post completion with the appointment of an industry veteran who will act as Non-Executive Director and a logistics specialist Group Chief Financial Officer who has been identified pre investment.

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iDEAL BRIEF Steve Granite, Chief Executive at Abbey Logistics, said: “We are delighted to have partnered with NorthEdge to complete the MBO and enable the Lucy family to exit the business. NorthEdge is the right partner for Abbey and we have been suitably impressed with the private equity firm since we first met earlier this year.

It is an exciting new chapter in the company’s life and we are very much looking forward to continuing the successful journey we have experienced to date. Our customers and employees will see the benefit as having a new partner on board will enable us to develop our business and continue growing from solid foundations.

Through organic and acquisitive growth, Abbey will become the market leader in both the liquid and powder transportation markets in the UK.” Jon Pickering, Director at NorthEdge Capital, added: “Abbey Logistics is led by an exceptional management team who has been with the business for more than 20 years.

They fully understand the specialist logistics market they serve having carved out a niche by distributing bulk powders and liquids for the food ingredients markets.

The company has demonstrated growth through a number of major contract wins and targeted acquisitions and this strategy will continue going forward with our support and follow on funding.

We are pleased to have provided an exit opportunity for the founders and are looking forward to working with Steve and Dave as we target further expansion across the UK and Northern Europe.”

The company was advised by EY (corporate finance) and Napthens (legal). NorthEdge was advised by a number of regional advisory firms including BDO (corporate finance), Pinsent Masons (legal), Graphene Partners (commercial due diligence) and EY (financial due diligence). KPMG provided support to newco on IT due diligence and tax structuring, Quinn Partnership performed management due diligence and Vista provided insurance due diligence.

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Orbis, Finance Birmingham and Royal Bank of Scotland Support Buyout of West Midlands Learning Provider Orbis has advised on the management buyout (MBO) of Lean Education and Development Limited (LEAD), a national provider of accredited vocational learning and development programmes.

The transaction was led by Partner Gary Ecob and Manager Steve Nock. Funding to support the MBO was provided by Finance Birmingham and Royal Bank of Scotland’s Corporate Transactions team, Birmingham.

Established in 2008 and headquartered in Hagley, West Midlands, LEAD specialises in the delivery of accredited adult apprenticeships and lean practice qualifications across a broad range of sectors. LEAD has developed a unique government-funded programme, which supports clients with their on-going continuous improvement programmes by training employees in live activity.

The company is recognised as a class leader in its field – both in terms of its business and delivery models and in relation to the quality of its delivery staff. The company has successfully trained over 7,000 learners since inception.

The business was originally set up by Chairman Gary Redmonds in 2008 as part of the Leaping Man Group of training companies and has grown significantly over the last eight years.

Gary has decided the time is right to hand over responsibility to the management team in order to focus on his other business interests. The MBO is being led by Finance Director Luke Cartwright, Managing Director Maxine Jones and Operations Director Phil Walters who will continue to run the business. Non-Executive support will be provided by Graham Mold at Finance Birmingham.

Gary Ecob, Partner at Orbis, commented: “We worked closely with the management team at LEAD to find the most suitable deal structure to ensure a strong platform for the business going forward. We believe the management team – with the support of Finance Birmingham and Royal Bank of Scotland– are well placed to deliver the company’s ambitious growth plans.”

The management team added: “The MBO provides us with an excellent opportunity to continue the growth of the company and to further cement the reputation of LEAD as a class leader in its field.”

Ondrej Okeke and Stephen Gater transacted on behalf of the bank.

Gater, Associate Director from the Corporate Transactions Team at The Royal Bank of Scotland, commented: “We are delighted to welcome LEAD as a new customer to the bank. We’ve been impressed with the company’s approach to adult apprenticeships in Business Improvement Techniques and Lean Manufacturing. We look forward to working with the team going forward.”

Funding to support the MBO came from Finance Birmingham’s £56m Mezzanine Fund, supported by the Government’s Regional Growth Fund. It is the largest individual growth capital fund for SMEs in the West Midlands.

Businesses can apply for loans of between £250,000 and £2m to fund development and growth plans.

Graham Mold, Finance Birmingham, said: “We are really pleased to back a great team and look forward to working with them over the coming years to grow the business, which is adding huge value to the UK manufacturing base.”

A host of Birmingham advisers were involved in the transaction, with legal advice to the management team provided by John Heaton and Nathan Gray of Higgs & Sons. Legal advice for Finance Birmingham was provided

by Clare Lang at George Green and legal advice to the bank was provided

by David Doogan and Jen Rawlins of Pinsent Masons LLP. Legal advice to the vendor was provided by Lee Clifford and Leanne Fryer of Freeths LLP and Financial Due Diligence was provided

by Rob Wilson and Roy Farmer of Dains LLP.

Palamon Agrees Sale of Eneas for a 3.3 x Return Palamon Capital Partners (“Palamon” or the “Firm”), a pan-European growth investor, has agreed the sale of Eneas Group (“Eneas” or the “Company”) to Norvestor Equity (“Norvestor”) for an undisclosed amount. The sale will bring total proceeds to NOK 750 million (approximately 80 million),

iDEAL BRIEF representing a 3.3x return on invested capital. The transaction is expected to close in August 2016, subject to regulatory approvals. Full terms of the sale were not disclosed, however, following the transaction the Company will continue to be led by CEO and Founder, Thomas Hakavik.

Eneas is the leading independent supplier of corporate energy services to small and medium sized enterprises (“SMEs”) in the Nordic region and serves more than 25,000 customers with energy brokerage, energy audit and smart metering services.

Palamon acquired a substantial majority stake in Eneas having recognised the growth potential of its highly scalable energy brokerage business, which intermediates between SMEs and the deeply fragmented Nordic supplier base of almost 300 energy providers.

Under Palamon’s ownership, Eneas has grown into the largest independent energy broker for SMEs and the clear market leader in Norway and Sweden, representing 1.7 TWh of annual energy consumption. The Company has been able to successfully leverage its scale and sophistication in navigating the Nordic electricity market to offer competitive, convenience-focused products tailored to the needs of its SME customer base.

Jean Bonnavion, Partner at Palamon Capital Partners commented, “I am delighted with the level of success at Eneas, particularly over the past three years during which time we have grown EBITDA at 40% CAGR. Our investment in Eneas originated from our pan-European thematic strategy, which identifies high-growth businesses supported by resilient sectoral shifts.

In line with our investment thesis, Thomas and his team have been able to scale the brokerage business to a position of real strength in a highlyfragmented and competitive supplier market, producing a 3.3x return for our investors.”

Thomas Hakavik, Founder and CEO of Eneas said, “Palamon has been a very strong partner for Eneas over the last three years. The Firm’s strategic guidance has proved critical in helping us to focus the company on the core business activities and drive growth. I am proud that Eneas is now the leading independent player in the Nordic energy market, in a stronger financial position than ever and with significantly improved capabilities. We are excited for the next stage of the company’s

growth.”

Palamon’s previous investments in the Nordic region include: Espresso House, which it realised in 2012 for a 3.4x return and Nordax, which it sold in 2010 for a 3.8x return.

The Firm’s investment strategy targets businesses that can capitalise on long term growth trends arising from socio economic and structural changes within sub-sectors of industry. In April, Palamon signed an agreement to sell Towry, the leading independent UK wealth manager for £600 million and a 13x investment return. Palamon’s recent investments include the acquisition of control positions in three Founder-owned businesses: Currencies Direct, one of the largest specialist international payments providers in the UK; Il Bisonte, an Italian leather accessories brand with an established sales presence in Japan; and The Rug Company, the leading global retailer of designer.

Psp Investments and Ontario Teachers' to Acquire Santander's Stake in Cubico Sustainable investments Long-term investors committed to supporting Cubico’s growth strategy The Public Sector Pension Investment Board (PSP Investments) and Ontario Teachers’ Pension Plan (Ontario Teachers’), two of Canada’s largest pension investment managers, announced that they will acquire, in equal proportions, Banco Santander, S.A.’s (Santander) indirect interest in global renewable energy and water infrastructure company Cubico Sustainable Investments Limited (Cubico). As a result, PSP Investments and Ontario Teachers’ will remain the sole ultimate shareholders of Cubico, on a 50-50 basis. Both parties are fully committed to supporting Cubico in achieving its investment mandate.

The company’s assets and investment activities will continue to be managed

by Chief Executive Officer Marcos Sebares and his seasoned leadership team.

“Our increased participation in Cubico is aligned with PSP Investments’ long-term investment approach and strategy to leverage industryspecific platforms and develop strong partnerships with liked-minded investors and skilled operators,” commented Guthrie Stewart, Senior Vice President and Global Head of Private Investments at PSP Investments.

“We look forward to continuing supporting Cubico’s growth strategy by providing the company with access to capital to facilitate development initiatives,” Mr. Stewart added.

“We remain committed to supporting Cubico’s management team as they execute on their strategy of delivering high returns in the renewables sector.

Ontario Teachers’ is proud to be supporting the continued conversion from hydrocarbons to clean and renewable sources of power.

Cubico’s flexible investment and acquisition approach fits well with Ontario Teachers’ approach to private investments,” commented Andrew Claerhout, Senior Vice-President, Infrastructure at Ontario Teachers’.

Headquartered in London, Cubico was established in May 2015. Its initial portfolio included 18 wind, solar and water infrastructure assets previously owned by Santander, representing a net capacity of 1.2 gigawatts (GW).

Since inception, Cubico opened regional offices in London, Milan, Sao Paulo and Mexico City. It also successfully completed four acquisitions spanning four different countries, growing its total net capacity to 1.62 GW. The company’s portfolio now comprises 22 wind, solar and water infrastructure assets in operation, construction or under development across eight countries (Brazil, Italy, Ireland, Mexico, Portugal, Spain, United Kingdom and Uruguay).

“Global investment in sustainable clean energy reached a new record in 2015, and Cubico’s excellent local market knowledge and strong relationships will allow us to continue to create and capitalize on attractive growth opportunities,” commented Marcos Sebares, Chief Executive Officer, Cubico. “We see Ontario Teachers’ and PSP Investments’ joint acquisition of Santander’s position as an important endorsement of our strategy and capabilities.

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iDEAL BRIEF We look forward to collectively leveraging our relationships and expertise to create value through the acquisition and operating excellence of renewable energy assets.”

The closing of the transaction is subject to customary closing conditions.

Rockefeller Brothers Fund Confirms Investment in Mainstream Renewable Power Africa Power Generation Platform The Rockefeller Brothers Fund investment is part of the $117.5m deal which has now closed, after being announced in June subject to shareholder approval

• Investment will fund Lekela Power Platform to build over 1.3GW of wind and solar plants in Africa by 2018 • Investors include IFC, the IFC African, Latin American and Caribbean Fund (ALAC) and the IFC Catalyst Fund, two funds managed

by IFC Asset Management Company, Ascension Investment Management and Sanlam • Lekela and Mainstream playing key role in delivering US Administration’s Power Africa initiative Global wind and solar company Mainstream Renewable Power

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announced the closing of the $117.5m investment deal which was signed in June, subject to shareholder approval. The Rockefeller Brothers Fund, a private grantmaking foundation, has confirmed it is part of the investor consortium. Mainstream is investing $177.5m of equity in the Lekela Power platform, of which $117.5 will come from RBF and the other investors, and $60m from Mainstream itself.

The investment will finance Mainstream’s continued expansion of the Lekela Power platform, a joint venture with private equity firm Actis.

The funding package will help Lekela meet its goal of constructing over 1.3GW of new power capacity in Africa by 2018, while addressing the challenge of climate change.

Mainstream Renewable Power CEO Eddie O’Connor said, “The teaming up of the world’s leading independent renewable power developer with a foundation started by members of the family that effectively founded the global oil industry, is a significant moment in the world’s transition to a new power system based on clean energy.

He adds: “Providing electricity for the people of Africa requires huge investments and is an opportunity to re-kindle growth and help the world economy overcome secular stagnation. We hope this will be the first investment of many from impact investors in this sector.”

Stephen Heintz, president of the Rockefeller Brothers Fund said: “I am very pleased the RBF will invest in Mainstream, an investment sourced by our Outsourced Chief Investment Officer, Perella Weinberg Partners, which will bring renewable energy to communities across Africa. I’m confident that if John D. Rockefeller were alive today, he too would recognize the enormous opportunities in the clean energy economy and be at the forefront of the global shift to renewable resources.”

Investors in Mainstream Renewable Power Africa Holdings, Mainstream’s funding vehicle for Lekela, include: The Rockefeller Brothers Fund, IFC, the IFC African, Latin American and Caribbean Fund (ALAC) and the IFC Catalyst Fund, two funds managed by IFC Asset Management Company, Ascension Investment Management and Sanlam.

The deal will allow Lekela to continue to build its pipeline of wind and solar projects in Africa. The platform plans to build four more wind farms in South Africa, a wind farm and two solar plants in Egypt, as well as wind farms in Senegal and Ghana.

Mainstream and Lekela are helping to fulfil the objectives of a series of key international initiatives, including the Obama Administration’s Power Africa, which aims to add 30,000MW of cleaner power generation through government and private partnerships, and the UN’s Sustainable Energy for All, which seeks to achieve universal access to power by 2030. Energy poverty has been recognised as one of the key challenges for Africa, with an estimated two thirds of people in Sub-Saharan Africa having no regular access to electricity.

First Avenue Partners acted as global placement agent for the transaction.

Simmons & Simmons acted as legal counsel to Mainstream and Norton Rose Fulbright for the investor group.

Siccar Point Energy Acquires Interest in the Greater Mariner Area and Appoints Chris Finlayson as Chairman Siccar Point Energy, a joint venture owned by Blue Water Energy and funds managed by Blackstone Energy Partners (“Blackstone”), announced the acquisition of an 8.9% interest in the Greater Mariner Area from JX Nippon Exploration and Production (U.K.) Limited. This acquisition is the first since Siccar Point Energy was launched in August 2014 following its initial funding by Blue Water Energy and Blackstone.

The Mariner Field, the centerpiece of the Greater Mariner Area, is located in the United Kingdom sector of the North Sea, on the East Shetland

iDEAL BRIEF platform, and is one of the largest remaining oil fields in the UK sector. The Mariner development is well underway following project sanction in 2013 and is expected to commence production in 2018.

Statoil (U.K.) Limited is the operator and majority owner, and Siccar Point Energy will be joining existing partners, JX Nippon Exploration and Production (U.K.) Limited and Dyas Mariner Limited.

Jonathan Roger, CEO of Siccar Point Energy, commented, “We believe that this is a great time to build a business in the North Sea for a well capitalised and experienced team. We are delighted to be joining the Mariner development partnership and look forward to working with the existing highly focussed partners and leading operator. Mariner’s long reserves life and its resilience to nearterm low oil prices position it well in the current environment and we continue to look for similar highquality assets to add to our asset portfolio.”

Mustafa Siddiqui, Managing Director at Blackstone, said: “We are very pleased to be supporting Siccar Point Energy’s investment in the Greater Mariner Area. This is a world-class asset with a best-in-class operator and running room for further investment, and provides a strong platform for further acquisitions in the consolidating North Sea region. Siccar Point Energy has the ability and appetite to invest at a large scale in the North Sea region at a time of capital scarcity, and we look forward to building on this first step in the company’s growth.”

Graeme Sword, Partner of Blue Water Energy, said: “We are delighted that we can participate in high quality fields, with top quality partners in the UK North Sea. We believe this is a validation that there are still attractive investments to be made in the UK North Sea and we will continue to support Siccar Point as they build their footprint with further acquisitions.”

Siccar Point is also announced the appointment of Chris Finlayson as Chairman. Mr Finlayson was, until 2014, the chief executive of BG Group plc.

Star Capital Partners Acquires Synergy Health Management Services Limited, The UK Linen Management Services Operations of the Synergy Health Limited Group of Companies STAR Capital Partners (“STAR”), a leading European fund manager, announced that it has acquired Synergy Health Managed Services Limited - the operator of the UK Linen Management Services (“LMS”) of the Synergy Health Limited group of companies for £50 million. This is the first acquisition made

by STAR’s third fund (“STAR III”).

The LMS business of Synergy Health Managed Services Limited, a wholly owned indirect subsidiary of STERIS plc, was created in 1996 and provides a range of sterile linen and laundry management services to hospitals and other healthcare providers throughout the UK including NHS Trusts, private hospitals, ambulance Trusts and healthcare and community Trusts.

The purchased company owns three dedicated LMS facilities in Derby, Sheffield and Dunstable.

STAR’s aim is to support the continued growth of the business organically, continuously improving operating efficiencies and by exploring adjacent markets and services. LMS’ ability to operate as an independent company is supported by its strong performance to date and its highly stable, nono date and its highly stable, noncyclical, business. The newly acquired business will continue to be run by its experienced management team, led by Mike Langhorn. Mike was appointed MD of the division in 2013 and has already been instrumental in growing the business.

The LMS acquisition is the second acquisition by STAR in the healthcare and public services sector, following its investment in Alloheim Senioren Residenzen AG in March of 2008.

Commenting on the announcement, Paul Gough, Managing Partner of

STAR, said: “STAR is acquiring a business with a strong market position in an attractive sector. LMS provides a critical service to its long term customer base making this an ideal investment for STAR III. The growth opportunities available to LMS as an independent company, exploring adjacent markets and new services, require further capital and expertise which STAR is well placed to provide. We look forward to working with Mike and his team to accelerate the growth of the business.”

Mike Langhorn said: “With STAR’s support we will be able to continue our strong growth as an independent company. We look forward to expanding our loyal customer base, which relies on our range of critical sterile linen and laundry management services, and to pursuing new opportunities in new markets.”

The announcement provides yet another example of STAR’s strategy to acquire and develop attractive assetbased businesses with strategic market positions and strong growth prospects.

Temasek Investment in Moncler is First Major Investment in Italian Company Temasek announced an investment in Moncler, an Italian/French luxury company and leader in high-end outerwear and apparel, via the acquisition of an equity stake in a newly incorporated investment company from Ruffini Partecipazioni.

This investment represents Temasek’s first significant investment in an Italian company.

Established in 1952 in Grenoble, France, Moncler operates in over 70 countries throughout Italy, EMEA, Asia and the Americas through a leading network of mono-brand stores and major exclusive luxury department and multi-brand stores.

Speaking on the acquisition, Temasek’s Head of Europe, Mr Tan Chong Lee, said: “This investment represents Temasek’s largest commitment to an Italian company to date. Italy is home to leading consumer and industrial businesses that have considerable export and international growth potential.”

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iDEAL BRIEF Commenting specifically on the investment in Moncler, Temasek’s Senior Managing Director for Europe and Joint Head of Consumer, Mr Luigi Feola, added: “We are pleased to gain exposure to Moncler, a company with a long standing legacy and whose products are regarded for their quality and innovation. We welcome the opportunity to work alongside our partner Remo Ruffini and to support Moncler in the long term as it continues its global expansion.”

Temasek sees opportunities in leading European companies that are looking to expand and diversify their export markets to growth economies in Asia, Africa and Latin America. This would include consumer companies, where there is strong appeal around their brands in markets such as China.

Temasek is an investment company, based in Singapore and investing over the long term around four key investment themes: • Growing middle income populations; • Transforming economies; • Deepening comparative advantages; and • Emerging champions.

By investing in companies that cater to one or more of these themes, Temasek becomes a provider of capital that helps companies at various inflection points of growth to meet the challenges that align with Temasek’s investment themes.

The Scottish Loan Fund and Maven Successfully Exit Investment in Spaceright Europe Having Supported the Company's Acquisition Strategy Spaceright doubles turnover and headcount with support of SLF Funding The Scottish Loan Fund (SLF or the Fund) has successfully exited its investment in Cumbernauld-based Spaceright Europe (Spaceright or the Company), a leading manufacturer

Gamechangers 40

and supplier of furniture, presentation products, toys and activity equipment for the education sector. Spaceright’s innovative range of products is used in nurseries, schools and universities throughout the UK. Since its original investment in May 2014, SLF has provided £2.2 million of funding to the business, initially backing the acquisition of Educational Technology as well as supporting product development for the enlarged business. In 2015, SLF further supported Spaceright in the acquisition of Millhouse Manufacturing Design, a designer and manufacturer of a complementary range of educational toys and furniture for nurseries and schools.

Spaceright is a notable success story, which has demonstrated the effectiveness of SLF funding in enabling ambitious Scottish companies to achieve their growth plans. Over the period of Maven and SLF involvement the business has almost doubled both turnover and headcount, and now employs around 90 staff across three locations.

Maven has worked closely alongside the management team at Spaceright to deliver its acquisitive growth strategy, which has been transformational for the business and would not have been possible without the support of the Fund. SLF backing has helped diversify Spaceright’s existing product base, and allowed the Company to consolidate its position as a leading supplier to the education sector and move successfully into the early-years market with a range of innovative products.

Since 2011 SLF has committing over £80 million in support of 31 dynamic, growth-focused Scottish SMEs, and is still actively investing, having completed the most recent investment in July 2016. The exit from Spaceright is the 13th achieved by SLF in four years, and has delivered another strong return for the fund.

David Milroy, Investment Director at Maven, commented: “We are delighted to have been able to support Spaceright in achieving such strong growth since 2014. We have been impressed by the management team’s drive and vision, which has seen Spaceright grow, both organically and through two successful acquisitions, to create an enlarged business with a market leading early-years offering.

Spaceright’s success exemplifies the potential for the Scottish Loan Fund

to support dynamic businesses in achieving their growth aspirations.”Alan Symon, Director at Spaceright, said: “We are extremely appreciative of the role the Scottish Loan Fund and Maven have played in supporting our recent growth, and in particular with the completion of two very important acquisitions which have established Spaceright’s overall offering as the most comprehensive in the sector. This success would not have been possible without the financial support of SLF and the strategic and commercial input of the Maven team.

Working with Maven has been a great experience and the outcome has been very successful for all involved.”

Michelle Kinnaird, Investment Director at Scottish Investment Bank, said: “The Scottish Loan Fund continues to be a valuable source of finance for ambitious, growth-oriented SMEs, and it’s great to see the impact that this funding has had on helping to take Spaceright to the next level. We hope that other companies in a similar position will see this success and be inspired to consider how best they can finance their own growth plans.”

Scottish Enterprise’s investment arm, the Scottish Investment Bank, is the cornerstone investor in the Scottish Loan Fund.

TPG Capital to Acquire a Majority Stake in Leading Cloud-Based Logistics Platform Transporeon Experienced, global software and technology investor and leading, European cloud-based logistics platform company partner to drive growth and product innovation Transporeon, a leading European cloud-based business network for industrial logistics, announced that TPG Capital, the North-Americanand European-focused private equity platform of leading global alternative asset firm TPG, has entered into a definitive agreement to acquire a majority interest in Transporeon from The Riverside Company and other shareholders. The transaction is expected to close in the third quarter and is subject to customary closing conditions, including regulatory approval.

iDEAL BRIEF Transporeon offers various connectivity-focused applications for the different stages of freight execution, providing shippers and carriers with meaningful cost savings, productivity gains, and service-level improvements by enabling them to communicate, collaborate, and transact efficiently. Transporeon is the leading cloud-based logistics platform with the largest network of its kind, connecting more than 1,000 shippers with more than 57,000 carriers across the world.

“Since inception, our goal as a company has been to enable seamless transactions for our customers through a highly-quality, connected and innovative network,” said Peter Förster, co-founder of Transporeon. “We’re very proud of the scale that we’ve achieved to-date.”

“Riverside has been essential to our growth throughout the last five years while we have expanded into new geographies and enhanced our product offerings,” said Marc Simon, co-founder of Transporeon. “We thank them for their partnership and look forward to building on this momentum with TPG.” “TPG is widely recognized as a leading investor in software, technology, and transportation management,” said Martin Mack, co-founder of Transporeon. “We are very excited to work with TPG, tapping into their deep experience developing networks and transportation businesses.”

“The supply chain space, a market that has traditionally suffered from major inefficiencies, is starting to embrace digitization as companies move away from manual processes to automated solutions,” said Malte Janzarik, of TPG Capital. “Transporeon is at the heart of this trend, positioned to tackle these inefficiencies by connecting tens of thousands participants in the supply chain. We look forward to working with Marc, Peter, Martin, and the team to further scale both the platform and the richness of its applications.”

This transaction builds on TPG’s track record of partnering with companies that are embracing software and technology to make business easier and more efficient across a range of industries. TPG has a long history of investing in both platforms and software companies, including Advent Health, Airbnb, Eze Software, IMS Health, Sabre, Uber, and Vertafore.

Additionally, the firm has partnered with a wide range of companies in

Europe, including digital education company TES Global, niche IT recruitment firm Frank Recruitment Group, specialist owner, developer and manager of European logistics properties P3, and leading Russian retailer Lenta.

Tyrrells Acquired by Amplify Snack Brands Inc. in a Deal Worth £300M Tyrrells Group Holdings Limited announced it has entered into a definitive agreement to be acquired

by Amplify Snack Brands Inc., a US publicly traded (NYSE: BETR) company best known for its SkinnyPop brand, in a deal worth £300m.

Founded at Tyrrells Court Farm, Herefordshire, in 2002, Tyrrells is an award-winning, manufacturer of premium hand-cooked potato and vegetable crisps, popcorn and other savoury snacks.

The value of Tyrrells has tripled in the last three years since it was acquired by Investcorp for £100m in 2013. Sales and EBITDA have more than doubled and employee numbers have grown by over 70% globally, 30% are new positions created in the UK. In the last 12 months Tyrrells has grown organically and through acquisitions in Australia and Germany, further expanding its better-for-you snacking portfolio into organic and gluten-free.

International markets now account for close to 40% of revenues compared to 20% three years ago.

Amplify Snack Brands is a major player in the rapidly expanding Better-For-You snacking category in the US. IRI data shows that in the last year SkinnyPop grew 35.3% to over $203 million and remains one of the fastest growing ready-to-eat popcorn brands in North America. In the UK Tyrrells’ indulgent popcorn, Poshcorn, has become one of the biggest brands in the fast growing ready-to-eat popcorn sector.

The deal means the Tyrrells range in the US, the largest global market for snacks, will benefit from the experience and knowledge of the Amplify team who are experts in growing premium brands in North America. All other nonNorth American territories, including the international launch of SkinnyPop, will be managed by the existing, UKbased Tyrrells team. David Milner, CEO of Tyrrells, will become

President International of Amplify upon completion of the transaction.

Tom Ennis, Amplify’s President and Chief Executive Officer says: “The product characteristics and flavour profiles of Tyrrells on-trend premium brands align with Amplify’s Better-ForYou snacking strategy. Our two brands are examples of strong entrepreneurial spirit with successful track records in transforming categories and creating growth brands. Together we plan to capitalise on each company’s market leadership and sales force capabilities to drive higher revenue growth than either company could independently accomplish”.

David Milner says: “This is a terrific deal for Tyrrells and the team who have delivered a stellar performance over the last few years. As a small, UK farm-based business it is a tremendous achievement to be now part of a US publicly-traded company with the international reach to make Tyrrells a global brand”.

Xura Announces Completion of Acquisition by Affiliates of Siris Capital Group, LLC • Xura shareholders to receive $25.00 per share in cash • Acquisition supports Xura’s transformation growth strategy to be the leader in digital communications solutions for Communication Service Providers (“CSPs”) • Enables further investment, expansion and development of digital communication and monetization services Xura, Inc. (NASDAQ: MESG), a leading provider of digital communications services, announced the completion of its acquisition by affiliates of Siris Capital Group, LLC (“Siris” or “Siris Capital”) in a transaction reflecting an equity value of approximately $643 million.

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“Gamechanger, what we define as an individual or business that aims to create a new model that leaves the older model obsolete.

Gamechangers impact how the game is played from one objective and ruling model to a completely new vision – changing the face of how we know something.�

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Akd's Corporate Law Practice Reinforced With New Senior Associate Leading Benelux law firm AKD recruits senior associate Erik Koster as from 1 September 2016. Erik Koster will be working in AKD’s corporate litigation and arbitration practice. With over 220 lawyers, civil-law notaries and tax advisors, AKD is the leading internationally focused legal and tax firm for any business dealing with the Benelux countries.

About joining AKD, Erik Koster says: “I’m looking forward to putting AKD’s national and international aspirations into practice, together with my new colleagues. AKD has already taken big steps, such as establishing a Luxembourg office and strengthening the tax practice. In addition, AKD’s corporate litigation team has recently been involved in a number of high-profile cases. These developments made my decision to join AKD relatively easy to make.”

Among other things Erik Koster works on corporate law disputes, with a focus on shareholder disputes and post-acquisition claims. He has considerable arbitration experience (including before the ICC, the SCC and the Netherlands Arbitration Institute), particularly with an international component. Erik is co-author of the Sdu Commentary on the statutory dispute settlement

Amit Jajoo Joins HSA Advocates as 10Th Dispute Resolution Partner HSA Advocates (HSA) adds its tenth Dispute Resolution Partner, Amit Jajoo, to bolster its Dispute practice in Mumbai, and nationally as well.

With an aim to proactively provide innovative solutions and to capitalise on growth opportunities, HSA has been relentlessly growing its bench strength by inviting quality legal minds to steer the firm in its next growth cycle.

Amit Jajoo comes on-board team HSA to further strengthen its Dispute Resolution practice, which already holds considerable market repute. Jajoo - a seasoned and established litigator in the Mumbai circle, has over twelve years of experience working with an impressive array of clients in litigation, as well as domestic and international arbitration.

Amrit Jajoo

He made his way up the ladder at PKA Advocates from 2008 and has been managing its Mumbai office. Jajoo has to his credit several IPR litigations and some significant experience of successfully representing clients before the Supreme Court, High Court, Company Law Board and various Tribunals.

“What really stood out in HSA for me is their single-minded focus and dedication in creating an alternative platform for the clients and colleagues, devoid of any individual and family ownership. This, coupled with their HSA 2021 strategy and the strides that they have made in last few months, really helped me close the discussion of my coming on board. HSA 2.0 vision strategy is both integrated and dynamic and I am excited to be a part of the next phase of this growth together with Sushmita and my team” says Amit Jajoo. Jajoo joins HSA along with an Associate Partner, Sushmita Gandhi, and a team of three Associates.

Sushmita has almost over a decade of experience in handling matters related to Banking, Commercial Litigation and Alternate Dispute Resolution.

“The last 3 months at HSA have seen rapid growth and change.

The firm is moving from strength to strength in enhancing its team, capabilities and capitalising on growth opportunities.” says Amitabh Sharma, Managing Partner, HSA. “With HSA 2.0, we have embarked on a journey to realize the HSA 2021 vision of creating a world class institution providing exemplary legal services and at the same time inspiring, energizing and connecting with our colleagues, clients and communities alike.”

Sushmita Ghandi “Our aim is to add value not just to our clients, but also to our people and the world around us by being innovative, solution oriented, knowledge driven and at the same time, socially responsible. We are driven to bask in the shared success of each of our attorneys. And in order to realize our HSA 2021 vision, we have been cherry-picking the ablest of lawyers – Amit and Sushmita being the latest to be invited to partnership collegium. Amit comes in with impeccable credentials within the Dispute Resolution space, a strong client following and a great reputation in the Mumbai litigation circles. Having known him over last several years in Mumbai, I have witnessed him growing professionally and achieve such an impressive client following in just over a decade practice. On behalf of the HSA partnership collegium, I extend a very warm welcome to Amit, Sushmita, Victor, Anaisha and Anamika to HSA.”

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Aquila Capital adds Daniel Just to it’s Advisory Board Aquila Capital is expanding its advisory board with the appointment of Daniel Just, chairman of the executive board at Bayerische Versorgungskammer (BVK), Germany’s largest public pension fund.

Mr. Just has chaired the executive board at BVK since 2013 and previously headed BVK’s asset management division. Under his tenure the pension fund established real asset investments as an integral part of its portfolio allocation and was one of the first signatories to the UN principles for responsible investment (UN PRI).

Bayerische Versorgungskammer is the competence and service centre for occupational and communal pension schemes. As a public authority of the Bavarian Ministry of the Interior, it is the joint executive body of twelve occupational and communal pension schemes with around EUR 66 billion assets under management and 2.1 million members. BVK has received a number of accolades for its outstanding performance.

Brooks Macdonald Strengthens its Taunton Office With Appointment of New Investment Director Brooks Macdonald announced the appointment of Ben Mackie as an Investment Director, based in its Taunton office.

Ben will join Brooks Macdonald’s Bespoke Portfolio Service team, with responsibility for managing discretionary portfolios on behalf of a range of clients. He will also be focused on supporting and growing Brooks Macdonald’s professional adviser network in and around the South West of England and Wales.

Ben joins Brooks Macdonald from Charles Stanley, where he was a Portfolio Manager. In addition to managing private client portfolios, he sat on the group’s investment strategy committee and structured product team. Prior to Charles Stanley, Ben worked at Barclays Wealth and Butterfield Private Bank.

Ben is a Fellow of the Chartered Institute for Securities & Investment (FCSI).

Nicholas Skelhorn, Senior Investment Director – Head of Taunton Office said: We are very pleased that Ben has joined us. His considerable investment experience and desire to work closely with professional advisers will provide an important addition to our team as more and more professional advisers decide to outsource investment management responsibilities to specialists like Brooks Macdonald. We pride ourselves on delivering a high level of service to introducers and their clients and our continued recruitment of quality investment managers is vital in achieving this.

Ben Mackie, Investment Director said: I am pleased to join Brooks Macdonald at such an exciting time for the business and for its Taunton office. Brooks Macdonald’s reputation across the professional adviser industry makes it an attractive place to work and I look forward to contributing to the future success of the business in the region and as a whole.

Roman Rosslenbroich, CEO and Co-Founder of Aquila Capital, said: “Aquila Capital has focused on alternative investments since its launch.

Given Mr. Just’s responsibility for some of Germany’s largest and highly sophisticated institutional investors, we greatly value his insight regarding the ever evolving needs of investors as well as the wider industry trends.”

Daniel Just added: “Since founding Aquila Capital 15 years ago, Mr. Rentsch and Mr. Rosslenbroich have developed the company into a leading independent alternative asset manager. I look forward to advising Aquila Capital on the development of investment solutions suitable for institutional investors.”

Aquila Capital’s independent advisory board provides strategic advice on the company’s strategic orientation while helping to identify and evaluate new business areas. Further information about the company’s advisory board can be found on the website: www. aquila-capital.com.

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Ben Mackie

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Catella Enhances Corporate Finance with Senior Recruitment Micael Averborg has been recruited to Catella as Head of Transactions at Catella’s Corporate Finance operations in Stockholm. Micael joins us from Atrium Ljungberg where he was a member of the management team and was Business Area Director for Transactions and Marketing. He has worked in senior roles within the real estate industry for nearly 20 years.

“We are very pleased to be able to announce that Micael will be responsible for our transaction business. With his many years of experience from the property market in our major cities, he is a very senior individual who will be able to contribute in the implementation of complex transactions and in building relationships with our clients,” says Robert Fonovich, Head of Catella’s Swedish Corporate Finance operations.

Micael Averborg has very broad experience from the property sector, and has in recent years worked primarily with transactions and business development, but also previously with both leasing and management issues.

Over the past 16 years he has held senior positions at Atrium Ljungberg, most recently as Business Area Director for Transactions and Marketing and prior to that as Business Area Director for Offices. Micael will take up the position as Head of Transactions at Catella on 1 October 2016.

Change at the Helm of Roberto Cavalli Gian Giacomo Ferraris Appointed New CEO of the Company Current Chairman Francesco Trapani and CEO Renato Semerari leave the Florentine maison The Board of Directors of Roberto Cavalli S.p.A., upon indication of the company’s shareholders Clessidra, Roberto Cavalli, L-Gam and Chow Tai Fook Enterprises, appointed Gian Giacomo Ferraris as new CEO of the company.

Renato Semerari has informed the Board of his decision to leave the CEO role due to divergences on the company’s development strategy.

Francesco Trapani, as part of the wider agreement that will see him leave Clessidra in the second half of September, once Italmobiliare – the new controlling shareholder of Clessidra - has received all the necessary regulatory authorisations, has handed in his resignation as Chairman of Roberto Cavalli, Mr Trapani will officially step down from his position in Roberto Cavalli on the 10th of September.

The Board of Directors of Roberto Cavalli S.p.A. thanks Francesco Trapani and Renato Semerari for the work done in these months.

“I look forward to having, and I am pleased to have, the opportunity to bring my skills to Catella. Catella has a strong position in the property market in Sweden, and it will be very exciting and interesting to take part in further strengthening the transaction business and in building more integrated Nordic Corporate Finance operations,” says Micael Averborg, who will become Head of Transactions for Catella’s Corporate Finance operations.

Gian Giacomo Ferraris is considered one of the most experienced executives within the international fashion and luxury goods industry.

An engineering graduate, in addition to the important managerial experiences at Gucci and at the Prada Group, Mr Ferraris in particular handled projects at Jil Sander and Versace, where he personally oversaw their turnaround and development processes, creating substantial value at both maisons.

Catella’s Corporate Finance operations provide transaction advisory services in sales and acquisitions to national and international investors in Europe, with a focus on complex transactions. Catella also offers market analysis and strategic advice, as well as advice on financing, to companies in the real estate sector.

“The deep industry knowledge and extensive professional experiences gained by Gian Giacomo Ferraris – emphasises Clessidra – will allow Roberto Cavalli to consolidate the process of re-launch that is at the foundation of the company’s development plan.”

“I am happy to join Roberto Cavalli, an iconic fashion brand that I know and appreciate, loved by celebrities and trendsetters worldwide – said Gian Giacomo Ferraris – In line with the shareholders’ mandate, we will start immediately to define new initiatives for the long-term development of the House.”

Cordium Appoints Doug Morgan as Group Chief Executive Cordium, the market-leading provider of governance, risk and compliance services, has appointed Doug Morgan as Group Chief Executive with immediate effect. Doug assumes the leadership of Cordium’s Executive Team and will initially be based in the US before relocating full-time to the UK in Q3.

Doug brings a wealth of experience to the role, having enjoyed a successful career in financial services and technology spanning over 20 years.

He joins Cordium from SunGard, where he had global responsibility for the company’s business in the asset management back office servicing and accounting space, consisting of solutions for investment accounting, mutual fund shareholder reporting, investor servicing, and financial reporting. In the course of his career, he has worked in roles spanning the breadth of the asset management industry, from global custodians and traditional asset managers through to hedge funds, funds of funds and private equity firms.

Roger Siddle, Cordium’s Non-Executive Chairman, said: “Over recent years Cordium has seen significant growth and this new management structure equips us perfectly for the next phase.

Doug’s experience and skills are exactly aligned with our ambitions: to continue to develop our unique combination of software and consulting services, while maintaining our reputation for excellent client service and growing our global capabilities. We look forward to a new era of success with Doug at the helm.”

In addition to his current responsibilities as CEO of Cordium US and Software, Bill Mulligan will assume the position of Group President, reflecting both the importance of the software business

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to Cordium’s growth plans and his leadership in North America.

Bill added: “Just as the regulatory landscape continues to undergo major upheaval, the way in which financial services’ firms manage their regulatory obligations is also changing with the times. We have no doubt that software and automation will increasingly play a crucial role in compliance over the coming years. Having someone with Doug’s experience and credentials puts us in an ideal position to continue to build out the functionality of our specialist technology solutions.”

Doug earned his undergraduate degree at Yale and holds an MBA from the Wharton School of the University of Pennsylvania.

Cuban-American Swaps Costa Rica for Singapore Singapore disputes boutique Providence Law Asia has recruited Rocío Pérez from Central American firm Arias & Muñoz, who will focus on international arbitrations between Latin American and Asian parties, as well as asset tracing, economic crimes and regulatory investigations.

A dual US-Cuban national, Pérez joined Providence Law Asia as US counsel on 16 June after five years based in Arias’s office in San José, capital of Costa Rica, where she was a foreign associate.

Pérez tells GAR: “While living and practicing in Latin America, I witnessed Asia’s growing influence in the region and my next move seemed obvious. Not only does Asia, and in particular Singapore, host a vibrant international business and legal community, but there will be significant opportunity to handle disputes that will arise between parties in these two regions.”

Abraham Vergis, who established Providence in 2012 after 14 years at Drew & Napier, says, “Rocío’s experience in Latin America will expand the scope of our offerings in dealing with arbitrations with a US or Latin American connection.”

He adds that “she will be instrumental to expanding Providence Law’s influence as a Singapore-based boutique beyond the shores of Asia.”

Pérez’s arbitration practice focuses on the construction sector.

She was part of the Arias team acting for a foreign investor in an ICC case against a sub-contractor over one of Costa Rica’s largest public infrastructure projects.

Since 2011, she has also served as coach to the University of Costa Rica’s team at the Willem CV is International Commercial Arbitration Moot – a position she will continue to hold following her move to Singapore. Roy Herrera, partner at Arias & Muñoz and president of ICC Costa Rica, says, “Rocío’s work in promoting international arbitration over the last four years in Costa Rica has been commendable.

She has been a tireless advocate and has a sharp legal mind.

We wish her all the best in her new venture and I have no doubt that she will flourish in Singapore.”

She also headed the in-house professional development program at Arias & Muñoz, designed to train lawyers to adopt international standards in legal reasoning, drafting, advocacy and client communication.

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Alongside arbitration, Pérez’s work in the areas of regulatory investigations and economic crimes has seen her training clients to respond to dawn raids.

Providence Law Asia observes that one in four companies in Singapore is affected by economic crimes and that more than 70 per cent of Singapore-based companies operate in markets with high levels of corruption.

Pérez started her legal career at Arias in 2011 after graduating from North Carolina’s Duke University School of Law. She is admitted to the Florida bar and speaks French as well as her native English and Spanish.

Elian Appoints Associate Director in Real Estate Elian has appointed Tim Daniels as an associate director within the real estate division.

Mr Daniels will be responsible for the administration of a portfolio of real estate structures and will act as director to a number of real estate clients. He brings extensive experience in real estate management, governance and oversight to the role.

A Fellow of the Chartered Management Institute, Mr Daniels joined Elian, formerly Ogier, in 2008 as a programme director to manage the company’s commercial property portfolio across a number of international jurisdictions. He was responsible for overseeing the £30 million build and fit out of 44 Esplanade in St Helier.

Prior to joining the private sector and moving to Jersey, Mr Daniels spent 24 years in the Royal Marines, progressing to chief forward planner for the Multi National Security Transition Command in Iraq.

Mr Daniels is currently studying the Institute of Directors Diploma in Company Direction and is in the process of gaining membership to the Royal Institute of Chartered Surveyors as an Associate.

Jon Barratt, head of real estate at Elian, said, ‘Tim’s fresh perspective and wide range of skills will strengthen our real estate client offering. Our team continues to grow and I’m delighted that Tim will be joining us.’

Elian Appoints Funds Director with more than 10 Years' Industry Experience Giles Johnstone-Scott has been appointed director within Elian Funds Services.

Mr Johnstone-Scott is responsible for the administration of a number of private equity funds and corporate structures and is part of the management team responsible for the ongoing operations of Elian’s funds business. In his role as director, he is involved with client relationship management, business development, systems development and talent management.

Mr Johnstone-Scott has more than 10 years’ experience in the offshore financial services industry, including private

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Europe and emerging markets, such as Morocco, Nigeria, Kenya and South Africa, drawing on his experience of simple and bespoke complex funding plans. He also advises on the construction, acquisition and disposal of energy and infrastructure projects. As well as working in private practice Conrad spent nearly four years working for the developer Renewable Energy Systems in-house.

Indraj Mangat, head of clean energy finance, comments: “Both Mark and Conrad will greatly enhance our existing energy offering as their project finance expertise directly aligns with the issues our clients are facing. These two high calibre lawyers will ensure we are very well placed to advise clients across the clean energy board and in the delivery of new infrastructure.”

Giles Johnstone - Scott equity, venture capital and mezzanine funds areas.

Prior to joining Elian in 2008, he held roles at Kleinwort Benson and Mourant du Feu & Jeune. Mr JohnstoneScott holds the Institute of Chartered Secretaries and Administrators diploma in offshore finance and administration.

Paul Lawrence, head of European funds at Elian, said: ‘Giles has been part of an integral group of professionals who have built up Elian’s significant and respected global funds business over the past decade. He is now in a position to further develop the funds service and its capabilities.’

Simon Waller, head of finance, comments: “We are excited to welcome both Mark and Conrad to the team. Both of them bring excellent experience and market knowledge that will be a great asset to our growing team as we continue to service our international client base.”

Conrad comments: “Having spent a significant amount of time working on international projects in Europe, the Middle East and Africa in my past role I look forward to expanding the global practice here at Eversheds and continuing to focus on financing energy and infrastructure projects, especially in the growing renewable energy space.”

Mark comments:

‘I am looking forward to developing Elian’s funds business and growing an exceptional team that provides market leading administration services for fund managers,’ added Mr Johnstone-Scott.

Eversheds adds to Banking Practice with Project Finance Duo Eversheds announced the appointment of London partners Mark Dennison and Conrad Purcell who join from Norton Rose Fulbright.

Mark Dennison focuses on clean energy and infrastructure finance. He advises on projects for the delivery of all types of renewable technology, most recently in biomass, offshore wind and solar PV, as well as on social and other infrastructure finance, including housing, street lighting, roads and defence transactions. His clients include banks, funds, sponsors and local authorities. Mark has expertise across the full spectrum of public/private partnership structures and on the provision of finance by the public sector.

Conrad’s practice covers all aspects of financing energy and infrastructure projects, with a particular focus over recent years on renewable energy projects. He advises developers, lenders, contractors and public bodies in both well established markets such as the UK, Sweden and Central

“I am thrilled to be joining Eversheds’ energy and infrastructure group with Conrad. Renewable energy technology is evolving rapidly and demand for projects for the delivery of clean energy and new infrastructure continues to grow in many markets. Eversheds provides the ideal platform to advise in these areas.”

Gibson Dunn Continues London Expansion with Private Equity Partner James Howe Gibson, Dunn & Crutcher LLP announced that James Howe will join as a partner in the firm’s London office. Formerly a partner with Proskauer Rose in London, Howe will continue his private equity and mergers and acquisitions practice at Gibson Dunn.

“We welcome James to the firm,” said Ken Doran, Chairman and Managing Partner of Gibson Dunn. “James will be a strong addition to our private equity and public and private M&A capabilities in the UK. Continuing to build our transactional capability in London is critical to establishing the bench strength and visibility needed to achieve long-term success in the UK and global markets.”

“James will be a terrific addition to the private equity team as well as the wider transactional team in London,” said Jeffrey Trinklein, Co-Partner in Charge of the London office. “He is energetic and engaging and has a strong reputation among

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private equity companies and competitors alike. His arrival will be an important part of our effort to continue driving forward our private equity and transactional offering.”

based out of HSA’s Mumbai office, but like that of all other Partners, his work will not be bound by geography, extending across locations to fortify the firm’s reach both nationally and internationally.

“James is a rising star in the London private equity arena,” said Charlie Geffen, Chair of the London corporate practice. “He has excellent technical skills, and the combination of his intellect, energy and ambition will ensure his success on our platform.”

“Gibson Dunn has a clear vision and commitment to growth in the London market, and specifically the private equity practice,” said Howe. “There is energy and excitement at the firm, and I look forward to expanding the practice in the firm’s collaborative, collegial and entrepreneurial environment.”

Prior to joining the firm, Howe practiced in the London offices of Proskauer Rose. Before that, he was a partner in the private equity group at Kirkland & Ellis International’s London office.

Howe trained with Slaughter & May and was admitted as a Solicitor of the Supreme Court of England & Wales in 2007. He is a graduate of Lincoln College, Oxford University (B.A. (Hons) History & Politics, 2003; M.A. 2007).

HSA Advocates Invites Bharat Sharma to join as 24Th Partner HSA Advocates (HSA), a full service law firm, continues to add to the experts on the partnership collegium and strengthen its practice areas. In less than a month of hiring Partner Sharath Chandrashekhar in newly opened Bangalore office, the firm has added Bharat Sharma, who is the twelfth Partner in the firm’s Corporate Commercial Practice. Bharat will be

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“Firm has entered into an exiciting growth trajectory, and is driven to glide through this growth phase, honing and maintaining excellent credentials and building on bench strength to support the launch of HSA into its next phase”, Hemant Sahai further adds. With this appointment, HSA now has 24 Partners & Associate Partners in its partnership collegium, with offices across New Delhi, Mumbai, Bengaluru and Kolkata.

IGF Begins a Programme of growth with 3 new Senior Hires

About James Howe Howe focuses his private equity practice on public and private mergers and acquisitions, with particular emphasis on cross-border leveraged buyouts, buy-ins, and strategic sales and acquisitions. He represents a broad range of clients globally, including many of the leading US and UK private equity sponsors, management teams, venture capital firms, financial institutions and public and private companies.

bolster our corporate practice”, says Hemant Sahai, Founding Partner of HSA.

Bharat Sharma Prior to joining HSA, Bharat was a Partner at Naik Naik & Co. He is a Solicitor and holds an LL.B. degree from K.C. Law College, University of Mumbai. In addition to being a skilled legal expert, Bharat also holds a Masters in International Finance from Middlesex Business School, London, which has consistently given him a holistic perspective on Corporate transactions. He started his career with Crawford Bayley & Co. Advocates & Solicitors in 2003, followed by Talwar Thakore & Associates in 2007 where he was seconded to Linklaters LLP, Hong Kong. Bharat joined Khaitan & Co. in 2010 and led some big ticket transactions in the Corporate M&A and Infrastructure space.

With more than a decade of work experience, Bharat specialises in mergers & acquisitions (in-bound and out-bound), private equity, venture capital, joint ventures, corporate restructuring, regulatory advisory and general corporate.

“We want to consolidate and grow our existing areas of practice. The firm already provides the full suite of legal services and now the time has come to strategically expand these areas and be at the forefront of the legal service providers in each of our practice areas. Bharat comes with impeccable credentials as a corporate lawyer, and I on behalf of the HSA Partnership welcome him to the firm to further

IGF, the leading commercial finance provider for SMEs, announced the appointment of three new Asset Based Lending (ABL) Directors to kick off its expansion programme. The three senior hires will be based in Scotland, the Midlands, London and the South East.

The addition of its new ABL facility reinforces IGF’s commitment to meeting the growth aspirations and working capital needs of UK SMEs. To compliment the addition of the new directors, IGF have also opened offices in Central London and Glasgow.

Alan Anderson, based in Glasgow, joins IGF to lead its Scottish ABL offering.

Alan’s highly successful career includes time at Clydesdale, Aldermore and Bibby. He brings a wealth of experience to the company, and will spearhead IGF’s Scottish business.

Alan Anderson, ABL Director, Scotland comments: “IGF is a company held in extremely high regard within the industry, so joining the firm presents an exciting opportunity. Small and medium-sized businesses in Scotland need more lending options aside from the traditional banks and traditional independent invoice financiers. IGF’s expansion into the region will be a huge benefit for these businesses.”

IGF also welcomes Barry Lee, the new ABL Director for the Midlands.

Barry is another highly successful ABL professional with over 20 years’ experience in structuring bespoke finance solutions, MBOs, acquisitions and turnaround finance.

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Barry Lee, ABL Director, the Midlands comments: “IGF’s countrywide expansion demonstrates a fantastic opportunity to increase the level of financial support for SMEs, not only in the Midlands region but across the UK. I am very much looking forward to helping IGF expand the ABL side of its business.”

In addition, Alan Austin joins as ABL Director for London and the South East region. Alan has worked in the sector for 18 years and has extensive experience of a wide variety and complexity of deals, including MBOs, MBIs and acquisition, refinance and turnaround.

Alan Austin, ABL Director, London and the South East, comments: “I am thrilled to be joining IGF at such a crucial stage of its expansion process.

The firm’s commitment to growth is at the core of the business, and I am looking forward to seeing what we can achieve together at this pivotal point in the UK’s future, when fast, bespoke and flexible funders need to be at the heart of our economy.”

John Onslow, CEO of IGF Group, comments: “These senior hires form a key part of IGF’s ambitious expansion plans, with each of them holding claim to successful careers within the ABL industry. Their expertise will open the door to funding for many SMEs and prove fundamental in the success of IGF’s regional expansion.”

IGF Expands Into North West and Continues Nationwide Hiring run IGF, the leading commercial finance provider for SMEs, is continuing its nationwide expansion programme, introducing a Manchester presence and two new senior hires for the North West and North London & the Home Counties.

IGF’s commitment to provide creative financing solutions to support business growth and working capital is stronger than ever following the expansion of its Asset Based Lending services earlier

this year. Richard Spielbichler, ABL Director, will be leading the North West division from IGF’s new base in the heart of Manchester’s financial district. He joins IGF with 20 years of industry experience, following 12 years with GE Capital and previous business development roles within RBS Group.

Richard Spielbichler, ABL Director, North West comments: “The North West boasts a thriving economy, particularly in the manufacturing space. IGF will be providing the local business community with the support and financing it needs to make the most of the region’s commercial activity.”

In addition, Jeff Greenfield joins as ABL Director for North London and the Home Counties. In Jeff’s previous roles as Director at Santander and Corporate Sales Director at Close Brothers, he has facilitated a variety of funding solutions including Management Buy Outs (MBO), acquisitions and refinancing.

Jeff Greenfield, ABL Director, North London and the Home Counties, comments: “IGF has proven capability to structure finance to the specific needs of SMEs. I’m thrilled to be part of an entrepreneurial culture and experienced team providing financing solutions of the highest quality.”

Jon Hughes, Commercial Director of IGF ABL, comments: “Our people’s expertise and passion for supporting business growth is the driving force behind our expansion and ongoing success. With IGF’s increased portfolio of alternative funding options, we’re continuing our mission to provide innovative and dynamic financing solutions to SMEs across the UK.”

Kuber Ventures Expands UK Business Development Capabilities Tim Thornton, Matt Lenzie, & Kate Hopkin join Kuber Ventures to drive business growth

Kuber Ventures, the only alternative fund investment platform offering access to EIS/SEIS portfolios and funds, announced the appointments of Tim Thornton, Matt Lenzie, & Kate Hopkin.

All three hires are newly created rolesas a result of the continued growth* across the business and geographic regions.

Kate Hopkin’s role as Business Development Associate is key to providing support to the Business Development Managers increasing Kuber’s geographical distribution footprint. Prior to joining Kuber Kate worked at Brooks MacDonald and Fidelity International.

Matt and Tim will likewise work to increase Kuber’s distribution capabilities and geographical coverage. Both have been bought in because of their expertise in the EIS/BPR/SEIS and tax incentivized investing market. Specifically, Matt has been brought in to increase Kuber Venture’s coverage across London and the South East, whilst Tim being based in Leeds will capitalise on an area which Kuber see as a strategic priority for investors looking at the EIS space.

Prior to joining Kuber, Matt worked as Head of Sales for Enterprise Investments and Head of Investor relations for Angels Den, an investor platform.

Tim has considerable expertise gained at Blackfinch Investments and in previous roles in the North of England.

Piers Denne, Head of Sales said: “as Kuber increases its market footprint, it is crucial to have the right team to support the advisers working with Kuber. The hire of three new people with experience in the EIS/SEIS and BPR market is testament to the rapid growth Kuber is experiencing.”

He further commented that “Tim and Matt both come with exceptional track records in tax incentivised investing. Kate’s history of client services with Fidelity international and Brooks MacDonald makes her an ideal candidate to support the business development managers and their adviser clients.”

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Law Firm AKD To Open Office In Luxembourg Leading Benelux law firm AKD has announced its intention to open an office in Luxembourg to meet growing demand for integrated, international legal services in stable jurisdictions.

AKD’s new office in Luxembourg will expand its corporate, tax, banking and finance, and investment funds practices.

This step is part of AKD’s international growth strategy and allows the firm to support its clients with local offices throughout the Benelux region. With over 220 lawyers, civil-law notaries and tax advisors, AKD is the internationally focused legal and tax firm for any business dealing with the Benelux countries.

With the hire of three experienced and renowned partners, Bernard Beerens, Ayzo van Eysinga and Rutger Zaal, and their respective teams, AKD’s office in Luxembourg will immediately start with a dedicated team of six tax specialists and six lawyers. Until the formal approval from the Luxembourg Bar Association, the services will be rendered in collaboration with the Luxembourg law firm Beerens & Avocats.

Ayzo van Eysinga Ayzo van Eysinga, specialised in international tax and private equity, was partner at Stibbe Luxembourg, where he established and headed a ranked tax team since its inception. He advises prominent British and American private equity and venture capital clients, as well as American multinationals and sovereign wealth funds in the Middle East. He previously worked at Loyens & Loeff Netherlands, New York and Luxembourg, where he became partner in 2009. Ayzo also teaches at the University of Luxembourg.

Rutger Zaal, specialised in Luxembourg and international tax law, was partner at Loyens & Loeff in Luxembourg. Previously, Rutger worked for Loyens & Loeff in Amsterdam and New York. Rutger mainly focuses on international tax solutions for large multinationals and investment managers on a variety of transactions including real estate investments, mergers and acquisitions, financing and joint ventures.

Bernard Beerens Erwin Rademakers, Managing Partner AKD, says the move is responding to a clear client trend: “Businesses have become more international and there is an ever-increasing demand for solid international legal support for business transactions. Now, our clients are seeking ways to avoid the potentially difficult and costly fallout of the Brexit vote. The Netherlands and Luxembourg are two EU member states with very stable political, economic and tax climates. By adding an office in Luxembourg, we can offer our clients even more integrated international advice in the areas of company law, tax law and financing. Luxembourg is one of the most important international centers for these kind of services.” All three partners have extensive experience in Luxembourg and are well known in the international legal market: Bernard Beerens, lawyer, admitted to the Luxembourg Bar, established and has run his own successful law firm, Beerens & Avocats in Luxembourg for the past six years.

Bernard previously worked at Allen & Overy and Loyens & Loeff in Luxembourg and New York. Bernard is a specialist in company law, corporate finance, private equity, mergers and acquisitions, transactional business law and other bank and financial matters.

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Rutger Zaal

The new office will be located at 3, Rue du Fort Rheinsheim in Luxembourg.

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Morgan Lewis Expands Commitment to Asia with new Shanghai Office Global law firm Morgan Lewis announced it has established a new office in Shanghai, representing a significant expansion of its services to clients with interests in China and markets throughout Asia and the world. The office is the firm’s sixth in Asia, its second in China, and its 29th worldwide.

Led by global corporate transactional lawyers Mitch Dudek, Todd Liao, Alex Wang, Eddie Hsu, and Cindy Pan, the office offers clients a comprehensive range of legal services to fulfill their transactional, merger and acquisition, real estate, private equity, and fund formation and investment needs.

Other services include advising on the US Foreign Corrupt Practices Act (CAP), the UK Bribery Act, technology licensing, intellectual property protection and enforcement, and labor and employment.

In 2015, Morgan Lewis secured a key base of operations in the thriving business center of Singapore with the establishment of Morgan Lewis Stamford, and in late 2014, the firm significantly expanded its Tokyo office with the addition of lawyers from Bingham McCutchen. These offices joined our offices in Beijing, Almaty, and Astana in serving clients across Asia.

“I am thrilled to welcome a team of lawyers who are deeply familiar with China and its business and legal systems,” said Firm Chair Jami McKeon.

“Shanghai is not only China’s largest city but it is a global financial center of critical importance to our clients all around the world.”

The newest additions to the Morgan Lewis greater China team bring with them backgrounds in the representation of business clients throughout the region: Mr. Dudek has practiced in the greater China region for more than two

decades. He advises on corporate, real estate, and finance transactions, including acquisitions and divestitures of corporate structures and assets, consolidation and restructuring transactions, foreign direct investments and joint ventures, energy projects, real estate developments, nonperforming loan transactions, technology licensing and anti counterfeiting, derivatives and structured finance, competition and antitrust, and other corporate, intellectual property, securities, and financial transactions.

Mr. Liao advises multinational corporations on transactions and legal issues involving China. He works on cross-border mergers and acquisitions, foreign direct investment and investment financing, structuring of complex commercial transactions, disposal of Sino-foreign joint ventures and assets, technology licensing, intellectual property protection and enforcement, trade, and dispute resolution matters. He has worked extensively on FCPA issues in China and the Asia Pacific region.

Mr. Wang focuses primarily on real estate issues. His practice encompasses a broad range of transactions, with an emphasis on real estate private equity, fund formation, corporate and mergers and acquisitions, and corporate and real estate finance. He represents international real estate investment funds, investment banks, financial institutions, multinational corporations, and private equity and hedge funds in a variety of complex and often innovative cross-border and domestic transactions in China with respect to acquisitions, dispositions, joint ventures, structured finance, real estate development, public auctions, and nonperforming loan transactions.

Mr. Hsu represents clients in a wide variety of commercial transactions, with a primary focus on debt finance transactions. In addition, he works on numerous matters involving structuring, negotiating, and executing mergers and acquisitions, joint ventures, and other foreign direct investment transactions in China. He also has been heavily involved in advising owners, developers, and operators with regard to a variety of hotel, private club, and serviced residential condominium projects.

Ms. Pan advises clients on a wide variety of corporate, real estate, commercial, and financing matters.

These include foreign direct

investment, joint ventures, mergers and acquisitions, and real estate acquisition.

She also advises clients regarding the formation and raising of RMB funds in China.

Northedge capital Strengthens team with CFO Appointment NorthEdge Capital has appointed Prem Mohan Raj to Chief Financial Officer (CFO) as the firm continues to invest in its team and target more deals across the North.

Prem joins NorthEdge with over 12 years of private equity experience.

He joins from Livingbridge, where he worked in senior financial management positions, latterly as CFO, across a range of its funds, including its limited partnerships, Venture Capital Trusts and AIM quoted investments. Prior to that, he was CFO at real estate private equity firm Brockton Capital, having started his private equity career at Coller Capital.

As CFO at NorthEdge, Prem will manage all aspects of the firm’s finances, which now includes £525m of funds under management following the closure of Fund II in March this year, and the firm’s growing catalogue of portfolio companies. He will be responsible for driving NorthEdge’s financial strategy, delivering strong financial control to allow the firm to accelerate its growth plans.

Prem Mohan Raj, Chief Financial Officer at NorthEdge, said: “NorthEdge has an excellent track record of success and has built a robust platform to build further growth. This role represents an excellent opportunity to play an integral role in shaping this firm’s ambitious growth plan. I am relishing the opportunity and challenge that driving NorthEdge’s financial strategy brings and look forward to working as part of the firm’s immensely talented team.”

Dan Wright, Chief Operating Officer at NorthEdge Capital, said: “Prem has demonstrated an outstanding aptitude for financial management throughout his extensive career in private equity. He offers the operational and strategic

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excellence required to be a real asset to NorthEdge as we seek to continue our momentum and expand our portfolio with more investments from Fund II.

White & Case and Pinsent Masons.

Based out of Shoosmiths’ Milton Keynes office, Amit brings a wealth of international experience with a focus on private equity and mergers and acquisitions.

Rachel is noted in the Legal 500 directory for a ‘wealth of experience in business angel and venture capital work’. Sources praise her for her ‘pragmatic approach to problem solving’ and ’24-hour service.’

Recognised as a ‘Rising Star’ (IFLR 1000), Amit is described as ‘supremely smart and dedicated’ (Legal 500) and is praised as someone who ‘gets off the fence, gives practical advice and finds solutions’ (Chambers 2016). Amit’s specialist areas include acting on buy outs, bolt on acquisitions, management incentive plans and exits both on domestic and multijurisdictional PE transactions.

Rachel is noted in the Legal 500 directory for a ‘wealth of experience in business angel and venture capital work’. Sources praise her for her ‘pragmatic approach to problem solving’ and ’24-hour service.’

Prem Mohan Raj “We are committed to providing a responsible financial approach that offers the best avenue for sustainable growth for both ourselves and the businesses we work with. Prem is an excellent match for our ambitious growth strategy and values. We are delighted to welcome him to the team.”

Shoosmiths Continues South East Expansion with Partner Hires

Amit Nayyar

Rachel Turner joins as a corporate partner into Shoosmiths’ Thames Valley office in Reading.

Previously a partner at Readingbased firm Boyes Turner, Rachel has expertise in a range of corporate transactional work from mergers and acquisitions and management buyouts through to joint ventures and corporate reorganisations. In particular, she has considerable experience in handling venture capital and business angel investments.

National law firm Shoosmiths has further strengthened its corporate team with the appointment of two new partners into the South East offices.

Amit Nayyar joins Shoosmiths from Hogan Lovells where he was a leading corporate partner. Previous to this, Amit has held positions at

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Rachel Turner

Amit and Rachel’s appointments come hot on the heels of Adam Chamberlain who recently joined as a banking partner in Shoosmiths’ London office.

Adam specialises in development and hotel finance and is co-author of the BVCA Guide to Real Estate Funds. He brings a wealth of knowledge and versatility which will further strengthen Shoosmiths’ national finance offering.

Chris Garnett, head of Shoosmiths’ corporate team, commented: ‘We are delighted to welcome Amit and Rachel into our corporate team at Shoosmiths. We make no secret of our growth ambitions and these appointments are firm evidence of our intention to further develop our national corporate practice.

With their particular expertise and experience in handling start up and venture capital investment through to substantial private equity transactions, Amit and Rachel will be a fantastic addition to our growing and successful venture capital and private equity business.’

Shoosmiths’ corporate team advises public and private companies, management teams, investors and debt providers through the business life cycle.

Shoosmiths work with businesses from start-up and first round finance through to mergers and acquisitions, MBO and MBI transactions, development funding and on exits, by way of sale, listing or private equity investment.

Nationally, the corporate team is ranked in joint first place by deal volume in Experian’s UK Deal Review and Advisor League Table. The team was recognised for its mergers and acquisitions expertise at the 2015 M&A Awards, winning the Law Firm of the Year category.

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Apple introduces iPhone 7 & iPhone 7 Plus - The best, most advanced iPhone ever!

Including breakthrough new camera systems, The best battery life ever in an iPhone and water & dust resistance Welcoming the highly anticipated iPhone 7 and iPhone 7 Plus, the best, most advanced iPhone ever, packed with unique innovations that improve all the ways iPhone is used every day. The new iPhone features new advanced camera systems that take pictures like never before, more power and performance with the best battery life ever on an iPhone, immersive stereo speakers, wide colour system from camera to display, two new beautiful finishes, and is the first water and dust resistant iPhone. iPhone 7 and iPhone 7 Plus will be available in more than 25 countries beginning Friday, September 16. “iPhone 7 and iPhone 7 Plus dramatically improve every aspect of the iPhone experience, reaching a new level of innovation and precision to make this the best iPhone we have ever made,” said Philip Schiller, Apple’s senior vice president of Worldwide Marketing. “The completely redesigned cameras shoot incredible photos and videos day or night, the A10 Fusion chip is the most powerful chip on any smartphone while delivering the best battery life ever in an iPhone, and an entirely new stereo speaker system provides twice the sound, all within the first water and dust resistant iPhone.”

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New Advanced Camera Systems iPhone 7 and iPhone 7 Plus take the world’s most popular camera and make it even better with entirely new camera systems. The 12-megapixel camera includes optical image stabilization on both iPhone 7 and iPhone 7 Plus, and a larger ƒ/1.8 aperture and 6-element lens enable brighter, more detailed photos and videos, and a wide colour capture allows for more vibrant colors with more detail. iPhone 7 Plus features the same 12-megapixel wide angle camera as iPhone 7 and adds a 12-megapixel telephoto camera that together offer optical zoom at two times and up to 10 times digital zoom for photos.

Coming later this year, the dual 12-megapixel cameras also enable a new depth-of-field effect, using both cameras on iPhone 7 Plus to capture images, while sophisticated technology including Machine Learning separates the background from the foreground to achieve amazing portraits once possible only with DSLR cameras.

Additional Camera Advancements Include: • New Apple-designed Image Signal Processor, which processes over 100 billion operations on a single photo in as little as 25 milliseconds, resulting in incredible photos and videos; • New 7-megapixel FaceTime HD camera with wide colour capture, advanced pixel technology and auto image stabilisation for even better selfies; and • New Quad-LED True Tone flash that is 50 per cent brighter than iPhone 6s including an innovative sensor that detects the flickering in lights and compensates for it in videos and photos.

Featuring iOS 10, the Biggest iOS Release Ever iPhone 7 and iPhone 7 Plus come with iOS 10, the biggest release ever of the world’s most advanced mobile operating system. iOS 10 introduces a huge update to Messages that delivers more expressive and animated ways to message friends and family, the ability for Siri to do more by working with apps, new ways to interact with apps and even more places to use 3D Touch, beautifully redesigned Maps, Photos, Apple Music and News apps, and the Home app, delivering a simple and secure way to manage home automation products in one place. iOS 10 also opens up incredible opportunities for developers with Siri, Maps, Phone and Messages APIs, allowing customers to do more than ever with the apps they love to use.

More Performance & Battery Life The new custom-designed Apple A10 Fusion chip features a new architecture that powers these innovations, making it the most powerful chip ever in a smartphone, while also getting more time between charges with the longest battery life ever in an iPhone. The A10 Fusion’s CPU now has four cores, seamlessly integrating two high-performance cores that run up to two times faster than iPhone 6, and two high-efficiency cores that are capable of running at just one-fifth the power of the highperformance cores. Graphics performance is also more powerful, running up to three times faster than iPhone 6 at as little as

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Both phones include support for up to 25 LTE bands, for the best worldwide roaming in the industry, and LTE Advanced for three times faster data rates than iPhone 6 at up to 450 Mbps.¹ For customers in Japan, iPhone will now support the leading FeliCa contactless technology, bringing the ability to use credit and prepaid cards, including on iD and QuicPay domestic networks, and Suica, Japan’s dominant transit card issued by JR East, the world’s largest transit operator.

An Amazing Audio Experience New stereo speakers offer amazing and immersive sound that is two times louder than iPhone 6s, offering increased dynamic range of sound and a higher quality speakerphone. The new iPhone comes with EarPods with Lightning connector to deliver incredible sound, as well as a 3.5 mm headphone jack adapter that allows customers to use old headphones and accessories.

New AirPods, Apple’s innovative new wireless headphones, weave simplicity and technology together to reinvent the wireless experience making headphones easy to use. Featuring the new Apple W1 chip, AirPods have extremely efficient wireless communication for a better connection, improved sound and industry-leading battery life. AirPods harness the power of Siri, allowing you to access your favourite personal assistant with just a double tap.

Design That Makes a Splash

Featuring iOS 10, the Biggest iOS Release Ever

The iPhone 7 and iPhone 7 Plus come in a gorgeous design in silver, gold and rose gold finishes and introduce two all-new black finishes, a beautiful black finish that has an anodised matte appearance, and an innovative jet black finish that has a deep, highgloss look. The new jet black finish is accomplished through an innovative nine-step process of anodisation and polish for a uniform, glossy finish. An entirely reengineered enclosure results in a water resistant iPhone offering protection like never before against spills, splashes and dust.²

iPhone 7 and iPhone 7 Plus come with iOS 10, the biggest release ever of the world’s most advanced mobile operating system. iOS 10 introduces a huge update to Messages that delivers more expressive and animated ways to message friends and family, the ability for Siri to do more by working with apps, new ways to interact with apps and even more places to use 3D Touch, beautifully redesigned Maps, Photos, Apple Music and News apps, and the Home app, delivering a simple and secure way to manage home automation products in one place. iOS 10 also opens up incredible opportunities for developers with Siri, Maps, Phone and Messages APIs, allowing customers to do more than ever with the apps they love to use.

The new iPhone features the brightest, most colorful Retina HD display ever in an iPhone, now with a wide colour gamut for cinema-standard colours, greater colour saturation and the best colour management in the smartphone industry. An all-new, advanced, solidstate Home button on iPhone 7 is designed to be durable and responsive, and working in tandem with the new Taptic Engine, provides more precise and customisable tactile feedback.

Introducing AirPods, the innovative new wireless headphones that use advanced technology to reinvent how we listen to music, make phone calls, enjoy TV shows and movies, play games and interact with Siri, providing a wireless audio experience not possible before. AirPods eliminate the hassles of wireless headphones, by just flipping open the lid of its innovative charging case and with one tap, they are instantly set up and ready to work with your iPhone and Apple Watch. Advanced sensors know when you are listening and automatically play and pause your music.

Using Siri, AirPods allow you to access your favourite personal assistant with just a double tap. This revolutionary experience is enabled by the new ultra-low power Apple W1 chip, which enables AirPods to deliver high-quality audio and industryleading battery life in a completely wireless design. AirPods will be available starting

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Apple reinvents the wireless headphone with AirPods Introducing an effortless wireless listening experience packed with high-quality audio & long battery life

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“AirPods are the first headphones to deliver a breakthrough wireless audio experience, and with the new Apple W1 chip they deliver innovative features including high quality sound, great battery life and automatic setup,” said Philip Schiller, Apple’s senior vice president of Worldwide Marketing. “AirPods are simple and magical to use, with no switches or buttons, automatically connecting to all your Apple devices simply and seamlessly, and letting you access Siri with just a double tap. We can’t wait for users to try them with iPhone 7 and Apple Watch Series 2.”

With AirPods, setting up and using wireless headphones has never been easier. Just open the charging case near your iPhone and with a simple tap, AirPods are immediately set up with all the devices signed into your iCloud account, including your iPad and Mac. AirPods are connected and ready to go when you are, just put them in your ears when you want to listen. AirPods can intelligently and seamlessly switch from a call on your iPhone to listening to music on your Apple Watch.

The all new Apple W1 chip enables the groundbreaking innovations in AirPods, with dual optical sensors and accelerometers in each AirPod that work with the W1 chip to detect when AirPods are in your ear, so they only play when you are ready to listen.

Simply remove them to automatically pause the music, or just remove one to have a conversation and automatically resume when you put it back. Access Siri with a double tap to your AirPods to select and control your music, change the volume, check your battery life or perform any other Siri task. An additional accelerometer in each AirPod detects when you’re speaking, enabling a pair of beam-forming microphones to focus on the sound of your voice, filtering out external noise to make your voice sound clearer than ever before.

The ultra-low power Apple W1 chip operates at one-third of the power of traditional wireless chips, enabling AirPods to deliver up to 5 hours of listening time on one charge. The custom-designed charging case holds additional charges, for an industryleading more than 24 hours of total listening time,* ensuring AirPods are charged and ready to go whenever you are.

Apple Watch Hermés introduces new styles & colours The evolution of a partnership built on parallel thinking Apple and Hermès have introduced the new Apple Watch Hermès styles and an expanded assortment of bands that incorporate Hermès’ signature palette alongside a series of bold new colours.

With a design process driven entirely by a shared ambition for ultimate beauty and utility, the collection pairs Apple Watch Series 2 with finely handcrafted leather bands in distinctive styles from Hermès, and features exclusive watch face designs inspired by the iconic Clipper, Cape Cod and Espace Hermès models. Apple Watch Hermès is the ultimate tool for modern living, a product of elegant, artful simplicity and functionality.

Design The expanded Apple Watch Hermès collection includes a new style — the Double Buckle Cuff in Swift and Epsom calfskin leathers, inspired by an archetypal Hermès sandal design by Pierre Hardy, creative director of Hermès shoes and jewelry, elegantly framing the wrist in new colours including Rose Jaipur, Étoupe and Bleu Agate. The new Single Tour Deployment Buckle band is a reimagined take on a classic form, pairing the elemental simplicity of Hermès Barenia calfskin leather with the modernity of an Hermès hidden deployment buckle, which opens with a click of two side buttons. The classic Double Tour and Single Tour styles continue for fall in refreshed colours including Anemone.

New Apple Watch Hermès models pair with Apple Watch Series 2, which features GPS, water resistance 50 meters,* a two-times-brighter display, a powerful dual-core processor and watchOS 3, and include an exclusive Hermès Sport Band in signature orange. The water resistant Sport Band is light and flexible for ultimate comfort and durability when working out, and is uniquely etched with ‘Apple Watch Hermès.’

“Ours is a partnership born of parallel thinking and mutual regard — we share similar preoccupations, ever evolving and refining our design,” said Jonathan Ive, Apple’s chief design officer.

“We are united by the same vision, the uncompromising pursuit of excellence and authenticity, and the creation of objects that remain as relevant and functional as they are beautiful. This is a new step of our attelage,” said Pierre-Alexis Dumas, Hermès’ executive vice president, in charge of artistic direction.

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Apple & Nike launch the perfect running partner, Apple Watch Nike+

Featuring Apple Watch Series 2 & exclusive Nike sport bands, this is the easiest way to run Apple and Nike have introduced Apple Watch Nike+, the latest result of a long-standing partnership. Apple Watch Nike+ is the ultimate tool for anyone who runs, pairing exclusive Nike Sport Bands with Apple Watch Series 2, which features GPS, a twotimes-brighter display, water resistance 50 meters,* a powerful dual-core processor and watchOS 3. Apple Watch Nike+ also includes exclusive Siri commands and iconic Nike watch faces along with deep integration with the new Nike+ Run Club app for unrivaled motivation to go for a run, coaching plans that adapt to your unique schedule and progress, and guidance from the world’s best coaches and athletes. Apple Watch Nike+ is the ultimate companion for those with a passion for running, whether they’re emerging runners or marathon veterans.

“Apple Watch is the ultimate device for a healthy life and we wanted to push it further to create the best smartwatch in the world for runners and athletes,” said Jeff Williams, Apple’s chief operating officer. “Apple Watch Nike+ takes performance tracking to a whole new level and we can’t wait to bring it to the world’s largest community of runners.”

“We know runners — and we know many are looking for a device that gives them an easy, fun way to start running,” said Trevor Edwards, president of the Nike Brand. “The market is full of complex, hard-to-read devices that focus on your data. This focuses on your life. It’s a powerful device with a simple solution — your perfect running partner.”

Features Apple Watch Nike+, like all Apple Watch Series 2 models, features built-in GPS to track pace, distance and route, so users can run without an iPhone.

With the brightest display Apple has ever made, metrics are easy to read, no matter the sun’s glare, and if users decide to take a post-run dip in the pool, Apple Watch Nike+ is water resistant 50 meters, for swimming.

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The Nike Sport band is crafted from the same strong, flexible fluoroelastomer as the original Apple Watch Sport Band, but now it’s perforated for even better ventilation and sweat management. The lightweight band is available in four vibrant, twotone colour combinations that are unique to the collection. Apple Watch Nike+ features two exclusive watch faces inspired by Nike’s iconic style that can be easily personalised with useful apps like Activity Rings, Heart Rate, Stopwatch and Weather, helping runners stay informed at a glance.

Nike+ Run Club Apple Watch Nike+ takes advantage of the unique capabilities of Apple Watch Series 2 and the Nike+ Run Club app to be the perfect running partner on your wrist. The app experience is seamlessly built into Apple Watch Nike+ and easily accessed right from the watch face, so users can get going with a quick tap.

The Nike+ Run Club app offers daily motivation through smart run reminders, challenges from friends and even alerts informing when the weather is right to get outside. Training data, including pace, distance and heart rate are available at a glance, and through shared run summaries, the app promotes friendly competition, even allowing users to send fist bumps to each other right from the wrist.

Apple introduces Apple Watch Series 2, the ultimate device for a healthy life Featuring water resistance 50 meters, GPS, two-times-brighter display, dual-core processor & watchOS 3 Introducing the Apple Watch Series 2, the next generation of the world’s most popular smartwatch. Apple Watch Series 2 is packed with incredible fitness and health capabilities including a water resistance 50 meter rating for swimming,* and built-in GPS so users can now run without an iPhone. Apple Watch Series 2 also features a dramatically brighter display and a powerful dual-core processor.

Combined with the performance enhancements of watchOS 3, Apple Watch Series 2 makes it even easier to access third-party apps, receive and respond to notifications and conveniently use Apple Pay. Apple Watch Series 2 will be available in more than 25 countries beginning Friday, September 16.

“We’re thrilled with the response to Apple Watch and how it’s changed people’s lives. We are committed to fitness and health and think our customers will love the new capabilities of Apple Watch Series 2,” said Jeff Williams, Apple’s chief operating officer. “With a powerful new dual-core processor, water resistance 50 meters and built-in GPS, Apple Watch Series 2 is packed with features to help our customers live a healthy life.”

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Fitness & Health Apple Watch Series 2 is rated water resistant 50 meters for swimming, surfing or just playing in the pool. For swimmers, Apple developed all-new algorithms after hundreds of hours of research for two new workout options, pool and open water. Apple Watch Series 2 can count laps, track average lap pace and auto-detect stroke type to accurately measure active calorie burn.

With built-in GPS, Apple Watch Series 2 records precise distance, pace and speed for outdoor workouts such as walking, running or cycling, without needing to take an iPhone. Users can begin an outdoor workout immediately as Apple Watch Series 2 uses Wi-Fi, GPS and locally stored satellite data to quickly identify their location. On completion of an outdoor workout, view a route map that shows variations in speed in the Activity app on iPhone.

Whether running, going for a swim or walking between meetings, the Activity app on Apple Watch Series 2 counts all daily activity towards the Stand, Move and Exercise rings.

Advanced Technology Apple pioneered the custom designed System in Package (SiP) for Apple Watch, and continues to develop this breakthrough technology with the second generation S2 chip. With a dual-core processor, the S2 chip takes performance to a new level, making Apple Watch up to 50 percent faster. In addition, a new GPU has been added, which delivers up to two-times-greater graphics performance. Apple Watch Series 2 also features a dramatically brighter display — at 1,000 nits, it’s more than two times brighter— making this the brightest display Apple has ever shipped, so it’s even easier to see important information at a glance when outside on a sunny day.

keeping friends and family motivated. There is also a customised experience for wheelchair users to close their Activity rings, in addition to dedicated workouts.

Apple Watch is even more personal with new watch faces including Minnie Mouse, Activity and Numerals. Simply swipe edge-to-edge to swap out a new watch face and with the new Face Gallery in the Apple Watch app on iPhone, it’s even easier to customise watch faces and discover third-party apps.

Apple Watch Lineup Apple Watch Series 2 is available with all the new fitness and health capabilities in lightweight aluminium or stainless steel cases, paired with a wide variety of gorgeous new band colours.

Apple Watch Series 1 is available in lightweight aluminium and combines the new powerful dual-core processor and GPU with all the incredible features of the original Apple Watch, making it up to 50 percent faster and available to even more customers, starting at just £269.

Apple Watch Edition now comes in a beautiful ceramic, which embodies craftsmanship with a lustrous white case and all the incredible features of Apple Watch Series 2. Ceramic is one of the hardest materials in the world — more than four times harder than stainless steel — with a beautiful, white, pearl-like finish, making Apple Watch Edition extremely scratch-resistant.

watchOS 3 watchOS 3 features significantly improved performance that makes it even simpler to launch favourite apps instantly, either from the watch face or with the new Dock, which displays the latest information already updated in the background. New fitness and health capabilities include the breakthrough Breathe app, designed to encourage users to take a moment in their day to do deep breathing exercises for relaxation and stress reduction. The Activity app now includes the ability to share, compare and compete,

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COVER

Investcorp announces agreement to purchase 3i's debt management business, adding $12 bn to its AUM Transformational deal will more than double Assets Under Management for international alternative asset management firm.

Investcorp, a leading provider and manager of alternative investment products, today announced that it has agreed to acquire the debt management business of 3i (“3iDM”) from UK based 3i Group PLC (“3i”). The proposed transaction, for a total consideration of £222 million (approximately $271 million), significantly enhances Investcorp’s global franchise as a multi-asset class alternative investment manager by adding $12 billion of assets under management, bringing the total to approximately $23 billion.

The acquisition is a strategic move for Investcorp, which last year announced that it was targeting growing assets under management to $25 billion in the medium term, and will add to Investcorp’s existing menu of product offerings across private equity, real estate, and alternative investment solutions (formerly hedge funds). The transaction is subject to various regulatory approvals and is expected to close in the first half of 2017.

3iDM is a leading global credit investment company managing funds which invest primarily in senior secured corporate debt issued by mid and large-cap corporates in Western Europe and the US. The business has a strong track record of consistent performance and growth, employing approximately 50 people in London, New York and Singapore. The existing management team of 3iDM will remain intact, with Jeremy Ghose continuing as CEO of the overall business and John Fraser continuing to oversee the US operations.

Highlights • 3i Group plc (“3i” or “the Group”) has agreed the sale of its Debt Management business (“3iDM”) to Investcorp • The transaction will generate cash proceeds to 3i of £222 million and an exceptional profit on disposal of £36 million, subject to closing adjustments that are dependent on the transaction’s completion date. The proceeds will be reinvested in 3i’s Private Equity and Infrastructure divisions • The transaction is expected to close by the end of March 2017, subject to satisfaction of closing conditions including the required regulatory approvals Simon Borrows, 3i’s Chief Executive, commented: “Our Debt Management business has produced strong cash income for the Group since our strategic review in 2012. However, the division fits less well with the 3i of today as we focus on our growing Infrastructure business and a proprietary capital approach in Private Equity.

We are proud to have built 3iDM into an industry leader in its markets and are delighted with our agreement with Investcorp, which we believe has the strategic commitment, capital commenting on the proposed acquisition, Mohammed Al Ardhi, Executive Chairman of Investcorp, said, “This is a milestone deal which will bring together two complementary businesses and broadens product diversity for existing clients of both Investcorp and 3iDM while deepening the geographical reach of the enlarged business.

The combination brings with it some of the most talented credit investment professionals in the industry together with a large universe of private and institutional clients spanning Europe, Asia, the US and the Arabian Gulf. We’re delighted to welcome the 3iDM team to Investcorp and look forward to growing the business further.”

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Rishi Kapoor, Co-CEO of Investcorp, added, “This is an exciting moment for us – we see this as a value- added transaction for all sides which will be accretive for Investcorp from day one. Under 3i’s ownership, the 3iDM team has created a compelling alternative credit investment business that has seen assets under management more than double in the past five years.

We see this business as one of the central pillars of Investcorp’s product platform going forward and are absolutely committed to continuing to grow the business on multiple fronts including fundraising, product development and capital support.”

Simon Borrows, Chief Executive of 3i, said, “The 3iDM business has had a strong run under 3i’s umbrella and Investcorp is a great home for the business going forward given its strong reputation as a global diversified alternative investment manager with a deep and loyal investor franchise.

The combination provides 3iDM with access to new and incremental sources of capital through Investcorp’s client base in the Gulf and the US. The fit is excellent from a cultural, product and geographical perspective.”

The transaction is the largest ever-strategic acquisition made

by Investcorp. It will be fully funded through the Firm’s existing balance sheet, and will not require any incremental debt financing or equity capital given its current strong capital and liquidity position with a regulatory capital adequacy ratio in excess of 30 per cent and accessible liquidity of close to $1 billion at the end of June 2016.

The Firm will continue to maintain strong levels of liquidity and capital adequacy after the transaction, significantly above the regulatory requirements, giving it considerable flexibility to fund additional strategic acquisitions where appropriate.

COVER

Strategic Rationale For The Transaction 3i’s Debt Management business was formed in February 2011 following the acquisition of Mizuho Investment Management, then one of Europe’s leading debt management businesses, from Mizuho Corporate Bank.

3i built on that platform through the acquisition, in 2012, of WCAS Fraser Sullivan Investment Management, a leading specialist US debt manager, and of five European CLO management contracts from Invesco. Today, 3iDM is a global leader in its markets, with strong investment teams based in London and New York and assets under management of approximately $12 billion.

3iDM has played an important role since our 2012 strategic review. Predominantly a third-party asset management business, it has provided us with cash income, contributing to achieving and maintaining a group operating cash profit, as well as good cash returns from our investments in the underlying CLOs. However, today the cash income from our Debt Management activities is less important as we focus on building our Private Equity and Infrastructure portfolios from a robust position, with a strong balance sheet and a lean cost base.

Strategic Progress Since announcing its planned medium-term roadmap in November 2015, Investcorp has announced several significant strategic moves. This includes the acquisition of Hedge Fund of Funds arm of SSARIS Advisors, LLC, a US investment manager of absolute return hedge fund strategies and hedge fund of funds strategies. In July 2016 it announced the further strengthening of its shareholder base with the agreement by Abu Dhabi based Mubadala Development Company to acquire a 20% ownership stake, alongside Investcorp’s stable of other blue-chip shareholders comprising major institutional investors from Bahrain and

Qatar as well as prominent individuals and family offices from across the GCC. In March 2016 Investcorp broadened its real estate offering with the appointment of Neil Hasson to lead the Firm’s European real estate investment activities.

Investcorp is one of the biggest and most active foreign investors in US real estate, managing approximately $1.8 billion of assets.

Information On The Transaction As part of the transaction, 3i will be selling its 3iDM fund management business and CLO equity investments required to meet risk retention requirements, valued at £182 million at 30 September 2016. Investcorp has also agreed to take over 3i’s debt warehouse commitments in Europe and the US. 3i will continue to hold certain CLO investments valued at £56 million at 30 September 2016, together with the benefit of certain incentive fees and will maintain its commitments to the Global Income Fund and the Senior Loan Fund.

The transaction will generate cash proceeds to 3i of £222 million and an exceptional profit on disposal of £36 million, subject to closing adjustments which are dependent on the transaction’s completion date.

The sale is expected to close by 31 March 2017, subject to satisfaction of closing conditions including the required regulatory approvals. 3iDM’s employees are expected to remain with the 3iDM business that transfers to Investcorp.

The leadership of 3iDM will remain unchanged, with Jeremy Ghose continuing as CEO of the overall division and John Fraser continuing to oversee the US operations.

GreensLedge, Gibson, Dunn & Crutcher, Dechert and PwC have advised Investcorp on the acquisition.

Mohammed Bin Mahfoodh Al Ardhi, Executive Chairman

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What does it mean?

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Debt

How do we move on from this?

Import Export

Cross Border M&A

Property

Finance

Data Protection

Lending

What does the future hold?

Cyber Security

Private Equity

What does Brexit mean?

Business as usual?

The UK has voted to leave the EU – a process that has come to be known as Brexit. Putting politics aside, Gamechangers wanted to take a closer look at what’s to follow and the impact this decision will have on business, finance, M&A, trade, etc.

We asked everything from what it means to the economy; what is to come both pre and post-Article 50; and where it leaves import/export trade…

Speaking with our contributors for this issue, we gathered together a great collection of opinions, findings, predictions and reports on the topic that seems to be hot on everyone’s tongue right now, Brexit.

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The economics, as always, is a very different story. Britain’s export-driven economy benefits hugely from being a member of the EU. It also happens to be the fifth largest economy in the world. So the question is, can Britain and the EU afford to lose each other?

Fifty years from now, when historians look back over 2016, one event will be singled out for particular focus: the referendum on the UK’s membership of the European Union. Opinion on what the outcome should be is set to intensify in the lead up to the vote, and not just among those visiting the ballot box. The whole of Europe, and a fair part of the US, realises the forthcoming referendum is a once in a lifetime event, as was the Scottish referendum in 2014 and the Greek one last summer.

Britain holds the key to Europe’s future.

If the nation’s electorate decides to wave goodbye to Brussels on 23 June, it is likely that more countries will follow, as Euroscepticism – once an exclusively British sentiment – is on the rise in many member states. Although this would not necessarily entail the disintegration of the European Union, it would certainly signify its diminishing status among the exclusive club of global superpowers.

If Britain chooses to stay, it is likely that the European Union will sooner or later evolve into a federal superstate; a United States of Europe, not so different from its American cousin.

This is after all the political entity that the fathers of Europe envisaged in the wake of the Second World War. This is also what Eurosceptics in the UK and on the continent fear the most. Beyond the temporary challenges that the EU has recently faced, such as the eurozone crisis, the key to understanding the controversy over Europe is the loss of national sovereignty. Brussels is seen by many Britons as a behemoth eating away at representative democracy and the country’s sovereign parliament. It’s no coincidence that the debate on Brexit has not followed the traditional left and right-wing lines, but a rising dichotomy between nationalism – or patriotism if you prefer – and a globalist perspective that favours open borders. Political parties and the media are also split along these lines.

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In the long-term, the forces of globalisation and technology may have the answer. A case in point is the fate of the British steel industry, which faces a major crisis after Tata Steel, an Indian company, announced in March that it will withdraw from its UK operations, cutting thousands of jobs.

The reasons for the industry’s troubles include climate change, competition from China and automation, all of which could contribute to the further decline of British manufacturing. One lesson that we are learning is that the future of the British economy lies in services: the digital economy, finance, education, healthcare, tourism, etc. The same is true to a certain extent right across Europe, although Germany’s strong manufacturing adds another dimension. The services are an area where openness and innovation matter more than history and regulation.

So the globalists seem to have the upper hand, on the economy at least.

No matter what the outcome of the referendum will be, Europeans should be prepared for a globalised economy, with or without the EU.

The moment of truth for the UK ad industry Back only one month on from that epic referendum result and the immediate Armageddon many advertisers feared has yet to materialise, highlighting just how much there is to play for in the move toward Brexit.

The panic that initially gripped the industry is subsiding and the alarm that had some twitchy clients pulling spend is giving way to pragmatism. Whether it’s the “calmness” of Publicis Groupe chief Maurice Lévy or Premier Foods’ refusal to scrap its annual ad spend target, there’s a realisation four weeks on from the vote that its real tremors will be felt over many years.

To survive that uncertainty, the industry needs to clarify its purpose in the post-

Brexit era to the government ahead of the negotiations to leave the European Union, according to Andy Duncan, chief executive of Camelot UK Lotteries and president of the Advertising Association.

There’s no doubt that the sector is key to the country’s financial prospects, contributing around £100bn in GDP. But as adland’s former minister Ed Vaizey puts it: “I don’t think advertising gets the credit it deserves in government because actually it doesn’t come [to ministers] with a lot of asks. I think funnily enough that’s a problem because ministers deal with industries when they’re asking for something, and advertising doesn’t ask for things.”

His replacement Matthew Hancock has already urged advertisers to challenge that notion: “I want to hear from all of you [advertisers] about what is it that matters most to you about the relationship with Europe so that we can feed that into the negotiations.”

There’s an underlying worry among advertisers that prime minister Theresa May won’t embrace them as tightly as her predecessor, though Hancock has already tried to allay any early concerns, many of which are directly tied to how the UK accesses the single market as a non-member of the EU, potential curbs on immigration and the prospect of tougher regulation.

The need for strong and confident brands Brexit provides a “challenge and an opportunity” for brands and marketers, said Pete Markey, brand communications and marketing director at Aviva. Some of those are already coming to the boil as evidenced by the latest quarterly results for companies. The head of Opel KarlThomas Neumann said the vote is “not a good omen” for the car firm’s growth in the second half of the year, whereas the Financial Times faces a rosier future after digital subscriptions surged by 600 per cent over the Brexit weekend.

“The key balance is for brands to tonally match and appreciate the everyday concerns and challenges customers are facing,” opined Markey.

“My sense is that brands will be looking to focus more on the emotional warmth of storytelling and heritage behind their brands to help build and strengthen confidence and trust – those brands that panic and waver will

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revert to heavy discounting and promotions which could potentially damage brand value.”

Separating fact from fiction has been hard for advertisers over the last month because many observers, including the International Monetary Fund, are still making predictions based on expectations of business outcomes versus foresight and a cast-iron knowledge of what’s to come.

“There are many getting caught up in the drama of Brexit, putting more attention into that than looking pragmatically at what is really going on,” said Scott Knox, managing director at the Marketing Agencies Association (MAA).

Keep calm and carry on For all that’s changed since the vote, the UK is still a global hub for creativity.

And while the pound is low, there are some agencies like WPP’s Fitch and Bulletproof capitalising on that perception by using the opportunity for cheaper exports to generate more business from foreign shores, emerging brands and established businesses across the world. It’s more opportunistic than strategic given the country could be seen as more of an investment risk now that ratings agencies have ripped into its credit score.

“Global clients are looking at this the same way they do in working in other, frankly more turbulent markets: It’s all part of a day’s work,” said Knox. “There are those however that are putting projects on hold. I have a feeling that is this being done using Brexit as an excuse, when the real reason is one of poor corporate performance leading to jittery decisionmaking.”

Knox refers to what was an initial flurry of advertisers pausing or pulling ad spend in the days and week after the referendum. And while some of their peers have since lambasted that perceived short-sightedness, forecasts from GroupM, the IPA Bellwether Report and Enders Analysis, to name a few, have projected downward revisions in ad spend.

Any real downward revisions will be made nearer the time when advertisers and their agencies have to commit to media owners. If the pound remains weak, obviously there will be marketers that have to divert some of their discretionary budget back to

material costs. And in these periods of uncertainty brands typically go with channels they know to work best for them.

Helen McRae, the chief executive of Mindshare UK, sees this shift turning on more short-term deals next year as clients seek to “maximise value potential from the market” with a closer eye on ROI from channels that deliver against the relevant metrics.

Paralysis is dangerous for any organisation and there’s a sense among more ambitious marketers that this is a chance to be bolder.

“I see the best companies firstly talking with their teams more frequently and via multiple communication channels,” said Jenny Ashmore, president of the Chartered Institute of Marketing and former senior marketer at SSE and Mars.

“Whichever way they personally voted, they [marketers] have stepped back and realised that this is a massive piece of consumer insight and sets a direction that they need to respond to. They are relishing going right back to the core assumptions of their marketing strategy and P&L structure – they have got straight into working out which drivers and assumptions have changed, plus which might change in the coming couple of years as the legal and trading aspects are negotiated.

“Likewise, some agency teams are out, on the front-foot, re-assessing how the messages connect with different audiences, and whether segmentation needs to change and evolve for the immediate and likely outcomes.”

Brexit: An opportunity and a strategic risk One brand facing up to that moment of truth is office equipment business Brother International Europe, where European marketing and communications manager Antony Peart said it’s “business as usual” post Brexitvote.

“The agencies we work with are continuing to provide marketing support to sales offices within European countries that are vibrant markets for Brother’s range of products and services in their own right,” he continued.

“Marketing budgets have to be flexible and responsive to change, so it is natural there will be some changes

in approach once the full impact of Brexit is clear. Ultimately, marketers will continue to work with the suppliers who best know their products and services, and use them to produce the best possible results.”

Aviva’s Markey continued on this point: “My sense is that brands need strong agencies now more than ever in order to hold their nerve and not head for short-term and potentially brand damaging options. Great agencies should be working with their clients to keep brands ‘on strategy’ but working with them to ensure communications and approach are tonally right post Brexit and really tap into the latest consumer thinking and mindset.”

The one clear and present danger amid all the uncertainty is the threat of a Brexit-driven recession.

Figures from Markit yesterday (22 July) revealed the economy has been pushed into its steepest downturn since the height of the financial crisis in early 2009. Chancellor Philip Hammond is poised to soften George Osborne’s austerity policy to dampen the financial blow should further evidence indicate a recession. He said: “Over the medium term we will have the opportunity with our Autumn Statement to reset fiscal policy if we deem it necessary to so in light of the data in the coming months.”

Marketers should capitalise on the lessons they learned during the previous recession, said the MAA’s Knox.

“Let’s say that the worse happens and the economy drops, as marketers and as agencies we need to remember that we are a unique generation.

“We’ve been through a global downturn and are still here doing great work. In 2007/08 many older generation colleagues said we’d struggle, as this generation of leaders hadn’t worked through a recession.

This time we have and we need to capitalise on the lessons we learned and drive a way through. The braver brands in 2008 to 2014 are the ones doing very well now, thank you very much. So let’s do it again if we need to.”

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The braver brands also need “pithy commercial strategies” to convince chief financial officers that “now is the time to invest to shape their success for the next decade,” said Richard Robinson, managing partner at marketing consultants Oystercatchers.

“The very best brands and marketers perform at their strongest in times of real change and market flux, or they demonstrate that they can shape and completely dominate the market going forward, just as Nintendo has done so brilliantly in the past fortnight.

Everyone who said likes and shares weren’t as important as sales just needs to look at the explosive growth in Nintendo’s company value over the past three weeks to recognise that value comes in more ways than just a sale.”

It’s a pertinent point, given just a week after the vote Nintendo warned that Brexit would force it to consider its operations in the UK. Fast forward two weeks later and the runaway success of Pokemon Go has more than doubled the video games company’s market clue to 4.5tn (£32bn) in just seven sessions.

“Brexit is heralding a time when marketers need to do what they do best and listen to their customers,” added Robinson.

“Hear their confusion, angst and in some cases fear – and deliver the calm, measured, strategically focused plans and campaigns for their brands that demonstrate true value and leadership.

Customers need to feel confident that their brands have confidence in the face of Brexit, that they have a plan and they know where they’re going.”

While Brexit means Brexit and the new prime minister has made that clear, the ramifications of that decision for advertisers and the rest of the country are not so apparent. One thing that is now clear, however, is that this is a real moment of truth for brands and agencies to find confidence and excel at the fundamentals of marketing.

Seb Joseph, The Drum

Apple, State aid and EU competence: Were the Brexiteers right?

A recurring theme of the arguments for UK withdrawal from the EU was that the Union’s institutions – especially the Commission and the Court of Justice – have never contented themselves with the powers given to them by the Treaties. Rather, through their decisions they launch constant land-grabs on territory supposedly within the exclusive competence of Member States.

Exhibit A in the “we told you so” case book is the Commission’s decision of 30 August finding that tax rulings by the Irish government in favour of two Apple subsidiaries amounted to unlawful State aid to the tune of some 13Bn Euros over 10 years, which had to be recovered. The Treaties make clear that direct taxation is a matter of Member State, not Union competence – unlike indirect taxes and customs duties, which attach to goods and services and so bear directly on the single market. In principle, Member States are free to tax lightly or heavily, progressively or regressively, and their choices lie entirely outside the Commission’s purview. As the European Parliament’s online fact-sheet puts it: “The power to levy taxes is central to the sovereignty of EU Member States, which have assigned only limited competences to the EU in this area.” No surprise then that Apple Chief Executive Tim Cook condemned the decision as a “devastating blow to the sovereignty” of Member States that has “upended the international tax system”, while Ryanair CEO Michael O’Leary offered a more, ahem, colourful critique...

So: by treating favourable direct taxation treatment as unlawful State aid, has the Commission overstepped the Union’s competence?

Just take another look at those innocuous words in the previous paragraph: “in principle”. Member States do – in principle – have freedom of action in areas outside EU competence. But where a Member State takes action that has material effects in an area within EU competence, it is no answer to say that the action itself lay within an area of activity outside that competence. Otherwise Member States could all too easily sidestep the binding effect of EU law within areas of Union competence. Hence where the implementation of national tax policy affects the operation of the single market – in particular its free movement and competition rules - the line between Member State and Union competence begins to blur.

Therefore for the Commission, charged with implementing the Treaty rules on competition, if an act of a Member State amounts to unlawful State aid – and so is by definition capable of distorting competition within the single market – the fact that the act concerns indirect taxation within that State cannot, in itself, detract from the Commission’s competence to investigate and take action. The tax rulings that led the Commission to take action in Apple’s case enabled its Irish subsidiaries to pay an effective corporation tax rate of between 0.005% and 1% on total European sales profits between 2003 and 2014 – “substantially less tax than other companies”, as the Commission’s press release put it. In other words the crux of the problem was the discriminatory, and thus anti-competitive, effect of the rulings.

The Commission was at pains to stress that its decision “does not call into question Ireland’s general tax system or its corporate tax rate”.

The Commission’s explanation is undoubtedly a correct statement of the legal position. But it is important to remember that it is the Member States themselves – not any EU institution – who have given the Commission political cover for its increasingly confident approach in relation to national tax arrangements. In October 2015 all 28 States – including, of course, the UK and Ireland - concluded a mutual agreement on tax transparency proposals designed to deter aggressive tax planning by large multinationals able to structure their affairs across national frontiers in a way not open to smaller businesses.

As Commission President Jean-Claude Juncker put it at the time, “This unfair competition is anathema to the principles of fair competition within our Internal Market.” The principles were subsequently incorporated into Council Directive (EU) 2015/2376 on mandatory exchange of corporate taxation information.

Apple is by no means the first large multinational to attract the unwelcome attentions of the Commission in relation to direct taxation of revenues. Significantly,

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though, the series of high-profile Commission decisions on State aid – beginning with its rulings against The Netherlands’ arrangements with Starbucks and Luxembourg’s with Fiat Chrysler – were all adopted after the October 2015 transparency agreement. In other words the idea that Member State tax sovereignty should be limited where its deployment conflicts with fair competition for businesses operating in the single market is one that originates with Member States themselves, whose cue the Commission has taken.

Ireland and Apple have signalled that they are likely to appeal against the Commission’s decision. The question of fiscal selectivity has been considered at General Court level (in Autogrill/World Duty Free Group, case T- 219/10) but not, so far, by the Court of Justice. On the basis of some of the CJEU’s earlier, comparable jurisprudence – and the recent opinion of A-G Wathelet in the World Duty Free Group appeal (Case C-21/15P) – that Court is more likely than not to accept that tax rulings like Apple’s can infringe the State aid rules. Its attention can be expected to focus on the Commission’s analysis of the economic effects of the tax rulings and the amount Ireland is required to recover.

But – to bring us back to Brexit - that likely acceptance of the Commissions’ power has nothing to do with “competence creep” at EU level: it is simply the application of ordinary principles on the effectiveness of EU law, corresponding to the Member States’ own recognition, on the political plane, of the role of national taxation in influencing the competitiveness of the cross-border environment.

Perhaps the bigger question for the UK, as it heads out of the EU, is how it wants to position itself as a trading nation.

If – as the noises currently emerging from government might suggest – continued membership of the single market is no longer a prime goal, then we may shortly find ourselves beyond the reach of the State aid rules and the Commission.

But does that mean we wish to make our way in the world by granting multinationals “beggar thy neighbour” tax breaks? Or do we continue to pay more than lip service to the importance of a level playing field? In the difficult boundary region between tax and competition policy, it is that fundamentally political choice that will shape the new rules businesses and their lawyers have to work with.

Author: Gordon Nardell QC

Can Brexit create a revolution across Europe?

Brexit campaigners owe a debt of gratitude to their Continental counterparts. First of all, there were the volunteers who came over during the referendum campaign, both as individuals and as delegates from various organisations. Their presence reinforced morale on the ground, disproved the claims that we were a bunch of Little Englanders, and provided some added media pull for local papers.

But we also owe them a debt for their efforts in their own countries, over many years, in providing a drag on the drive towards ever closer union. Thanks to their struggles,

European integration proceeded slowly enough that the United Kingdom never quite passed the point of no return.

The official Leave campaign, as is the nature of such things, dissipated with the mist on the morning of the June 24th. But the wider Eurosceptic movement across the EU did not. Indeed, like the American Revolution, the British referendum will birth consequences felt far beyond its shores. For Eurosceptic movements in other states, it now stands as a precedent, an aspiration, and a model.

The mould of the Treaty of Rome has been broken, and the myth of integration as inevitable has foundered. In the field of trade, for example, there is a real possibility that the European Free Trade Association (home to non-EU states such as Liechtenstein, Norway and Switzerland) could be truly revived as an alternative model, displacing theone-size-fits-all mentality of Brussels.

Now, a key question arises from all this: namely, to what extent is the UK Government likely to be engaged in fostering this change continentally?

We can of course predict with some certainty that the FCO will be reticent about supporting Eurosceptics in other EU states who might be seeking to follow in the tracks of Brexit.

Revolutionary governments, after all, tend to come a cropper as soon as they start to export their freedoms. And leaving aside the evident diffidence over Brexit among a number of FCO mandarins, there are also obvious practical difficulties in the UK “building fires in other men’s houses” (as per Elizabeth I) while negotiations are ongoing.

Yet it is in the interest of both the United Kingdom and the continent to see that revolution happen. History warns us of the risks associated with monocultures, whether biological or ideological. Our communal interest lies in not seeing a single homogenous continental bloc coalescing, particularly when democratically and economically it embodies so many tectonic flaws.

If Government cannot act, then politicians must. It is, perhaps, difficult (though not impossible) to foresee the Conservative Party collectively fulfilling that role. There are many “true believers” in the EU, who fill major roles in Cabinet, even if the number of Remain backers amongst its Parliamentary body will now inevitably fall away from the fallen bough. The risk is that the party defaults to neutrality.

There remains, therefore, a critical need to have active think tanks, outspoken MPs, and backbench groups engaging as common sense proxies with continental sceptics. If ministers cannot by duty speak out during sensitive talks, then the part falls to bold parliamentarians to lend their voices to friends in Denmark, the Netherlands, Sweden and elsewhere.

But will they do so? While Vote Leave, in which I was honoured to be able to play a part, did have some engagement with our friends overseas, it was a relatively limited affair. It was, understandably, hard to divert my colleagues’ attention from the intense pressures of the domestic media battle and consider the wider Eurosceptic case.

It was, for example, both a crucial and a correct decision to avoid claiming that Britain would solve its European difficulties by remaining a part of the European Economic Area after leaving the European Union proper, as a member of the European Free Trade Association alongside Iceland,

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Norway and Liechtenstein. Aside from the question of migration, the suggestion by Norway’s prime minister that Oslo might veto EFTA accession would have wrecked the campaign at a stroke.

But that decision, while tactically sound, also led to strategic myopia. There was little opportunity to explain the 42 types of trade arrangement that officially exist between the EU and other countries. There was no opportunity to let the Norwegians themselves explain why the whole description of EEA membership as “fax democracy”, due to its supposed subordination to European diktats, was a pure myth. And before and after the referendum, there was little interest in making arguments that spoke to Europe as a whole rather than the interests of British voters in particular.

Britain has not slain the European dragon – only wounded it.

So the likes of Bill Cash, John Redwood, Frank Field and their counterparts can’t hang up their swords just yet. Indeed, if the Conservative Party turns out to be institutionally unwilling to pursue the logic of its split from the EPP, then grassroots Eurosceptics themselves should take up the role. Engaged local party associations, whether Conservative, UKIP or even Labour, could officially or unofficially “twin” with Eurosceptic campaign groups abroad and lend them support from afar.

The heavy lifting however has already been done. The greatest gift the UK will now provide will be that of example.

Meanwhile, let us not though be selfish in offering aid to our Eurosceptic friends who seek to join us in our happy lot.

Dr Lee Rotherham, Director of Special Projects, Vote Leave

The city slickers are here to stay UK’s strengths will mean that London continues to be Europe’s leading financial services centre. London is ranked the most competitive in the world for financial services, while closest EU rivals rank at 15th and 19th.

• Brexit negotiations need to offer reassurance about passporting, which allows many British financial service firms to operate across the EEA. The UK could achieve third-party status in many financial service areas, but it may struggle in others.

• Incomplete single market in services offers limited benefits.

Services make up 70% of Europe’s economies and generate more than 90% of new jobs, yet services account for just 20% of intra-EU trade.

• Brexit opens up new opportunities for UK financial service firms. Bilateral trade agreements with emerging financial centre such as Hong Kong and Singapore are now possible.

• Brexit also offers opportunities to opt out of punitive EU regulation. This includes the Market Abuse Regulation, which inter alia requires directors with inside information to notify closely associated persons in writing, including illiterate children.

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UK's Natural Advantages in Financial Services The UK’s strengths as an international financial centre are extremely well established. The UK has the strongest financial services sector in the EU by reason of history, timezone, language, legal system, critical mass of skillsets, expertise in professional services and London’s cultural appeal.

The Global Innovation Index ranks the UK as the 2nd most innovative country in the world, making the UK excel in areas such as the digital sector and financial services. Furthermore, the UK is Europe’s leader in terms of its higher education sector and in the protection of creditors. Despite claims to the contrary, this means that there is little prospect of London being dislodged as Europe’s leading international financial centre. The inherent advantages and large network of financial and professional services are hard to replicate elsewhere in Europe.

The UK’s tax competitiveness has also dramatically improved over the past few years, with the number of UK companies seeking to relocate activities out of the UK falling sharply over the period 2012 – 2015. It is also estimated that 58% of financial service industry firms now view the UK as a ‘top three’ tax regime, making the UK the second most attractive regime in Europe, according to KPMG’s analysis. The decision to cut corporation tax has been particularly welcomed by businesses. Cutting corporation tax to 19% in 2017 and 18% in 2020 will further support the UK’s competitiveness in tax policy compared to other G7 countries, all of which currently levy a higher rate of corporate tax than the UK’s existing rate of 20%.

These factors will mean the UK continues to be a competitive place for financial services firms. According to the latest Global Financial Centres Index, the UK ranks the most competitive place for financial services in the world with 800 points out of 1,000 (see Figure 1). Its closest EU rivals are Luxembourg in 15th place with 698 points and Frankfurt in 19th place with 689 points. Moreover, many financial firms are still seeking to expand in the UK – for example, the Hedge Fund Skybridge capital has recently announced plans for expansion while Wells Fargo has announced it will invest nearly $400 million for a City of London office. It is also notable that the vast majority of UK-based fund managers will not change the location of their business operations post-Brexit (see Figure 2).

Figure 1: Competitiveness of selected international cities in financial services (2015)

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Figure 2: UK-Based Fund Manager Views on whether Brexit will lead to a change in location of their business operations

could prove to be more problematic.

In addressing concerns about immigration, the UK Government will almost certainly seek to make provisions for skills in the financial services industry within its new so-called “points based” system.

Is leaving the EU that bad for financial services?

What are the key concerns relating to Brexit?

The primary concern about UK financial services is the issue of “passporting”. Passporting means that a British financial service firm can provide services across the European Economic Area from its UK home. Importantly, it also means that a Swiss or a US operation can do the same from a subsidiary established in the UK. Current single market rules mean that financial service firms authorised in one member state can operate across the EU. While unlikely it is not impossible that the loss of the passport system for UK financial institutions may trigger some migration of global firms’ EU headquarters. For example, it has been claimed that loss of passporting rights could see UK exports of financial services to the EU halve to around £10bn. This could be problematic in the short-term by exacerbating the UK’s record current account deficit.

A rapid solution to continued passporting arrangements between the UK and the single market should therefore be a high priority in ‘Brexit’ negotiations.

Other concerns include that start-ups in EU countries will no longer look to expand in London, perhaps preferring other European financial centres. Furthermore, there are also concerns about a slowdown in the attraction of EU talent for the purposes of working in UK financial service firms. For example, 20% of Bulgarian and Romanian nationals in the UK work in banking and financial services, according to The UK in a Changing Europe.

Are there any solutions?

There are some prospective solutions to the problems faced

by UK financial service firms in a post-Brexit world. The UK could establish ‘third party’ status in many areas. A recent measure by the European Securities and Markets Authority (ESMA), for example, could provide a blueprint for UK financial service firms.

ESMA’s passporting rules now mean that asset managers in some countries outside the EU can continue offering services to investors across Europe, replacing the previous system of country-by-country private placement authorisation. It should be noted, however, that third party arrangements do not exist in some areas such as payment systems providers, which

Many financial and banking rules are now set by global regulators, limiting the impact of Brexit on financial service firms. Since the financial crisis, initiatives have focused on implementing the work of organisations such as the Financial Stability Board of the Basel Committee on Banking Supervision in areas such as resolution, prudential requirements and centralised clearing in the derivatives world.

Furthermore, the single market in services is imperfect, reducing its potential benefits to UK financial service firms.

Services make up 70% of Europe’s economies and generate more than 90% of new jobs, yet services account for just 20% of intra-EU trade, according to the UK’s Department for Business, Innovation and Skills.

Global financial services firms are adept at dealing with local market variations and hidden barriers to trade, such as competing regulatory and tax regimes, offering reassurance that UK financial service firms will be relatively unaffected by Brexit in the medium to long term.

Opportunities: New Non - EU trade According to the Office for National Statistics, nearly 60% of the UK’s exports in financial services go to countries outside the EU – which is a far higher proportion compared to overall exports. The UK’s exit from the European Union could further promote trade with countries outside the EU. Over the longer term there could be an opportunity to replace any potential loss from falling EU trade by concluding bilateral trade agreements with emerging financial centres, such as Hong Kong and Singapore, with which the UK has strong historical and cultural ties.

Opportunities: Regulatory Divergence UK firms could also benefit from regulatory divergence by avoiding burdensome EU legislation, such as the bonus cap, restrictive employment rights and proposals for a Financial Transactions Tax (FTT). These would improve the City’s competitive position with other European centres.

The FTT proposal is to tax transactions of shares and bonds at 0.1% and derivatives at 0.01% where there is an established link to the FTT zone. Both the European Union and Oxera have stated that the loss of GDP in the affected area will be greater than the expected tax revenue, according to PricewaterhouseCoopers. Former Governor of the Bank of England, Mervyn King, has also stated that if this tax were imposed in the FTT area, it would lead to more business coming to the City of London.

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The UK also has the opportunity to remove itself from the provisions set out by the EU-wide Bankers’ Bonus Cap, which limits extra pay to 100% of a banker’s salary or 200% if shareholders agree. This has had the distortionary effect of driving up salaries in banks and made top bankers’ pay less flexible, making banks and the financial system more fragile, according to the Bank of England.

There are also specific damaging provisions set out by European Union regulation, which the UK will be able to opt out of. These include specific provisions set out by the Market Abuse Regulation, the Alternative Investment Funds Management Directive (AIFMD) and EU regulation more broadly (see Figure 2).

Conclusion The UK’s natural advantages in financial services mean that London will remain Europe’s leading financial services centre. However, Brexit does bring some challenges and opportunities for financial services. An arrangement like the one secured in Norway, which has access to the single market but accepts freedom of movement, is unlikely to materialise.

It is welcome that the City of London has accepted this reality.

It is now imperative that the Government examines the best blueprint for the UK’s financial services industry. Switzerland has a successful finance industry outside the EEA, showing that alternative arrangements are very possible. London’s existing status as a global financial centre means that the UK is in an even better place to reach an agreement – given that EU businesses will also want to retain access to the UK’s financial services.

Following Brexit, the government’s focus on financial services must be to offer reassurance on the issue of ‘passporting’, to ensure that new trading opportunities with financial centres outside the EU are pursued and to remove the UK from burdensome and costly regulations.

Authors: Daniel Mahoney, Tim Knox and Jon Moulton

UK Entrepreneurs give their view on post-Brexit prospects More than half (51%) of entrepreneurs surveyed fear that Brexit will have a negative impact on their business Leading London law firm Bircham Dyson Bell revealed the findings of its first Entrepreneur’s Optimism Index (The Index) since the EU Referendum result, showing that small business owners and entrepreneurs – the lifeblood of this country’s economy – are concerned about the post-Brexit landscape.

The Index, published quarterly and supported by Rockstar Mentoring Group, tracks the opinions and levels of optimism amongst entrepreneurs in the UK. The Index surveys nearly one hundred businesses on key issues focussing on what Brexit means for entrepreneurs and the opportunities and challenges they see on the road ahead.

This quarter’s Index found: • Only 9% of entrepreneurs think that Brexit will have a positive impact; • Just under half of those surveyed (45%) worry that Brexit will lead to a period of uncertainty which will in turn cause a reduction in client demand; • With the fall in sterling, 20% are concerned that it will make importing goods or services more difficult and / or expensive.

However, more positively: • Only 9 % thought Brexit would make raising finances more difficult; • There is a significant number (40%) who are keeping cool, calm and collected and are neutral about the impact Brexit will have on their business; • 16% of the survey’s respondents thought it would bring a greater degree of workforce flexibility by reducing EU related employment legislation; • Moreover in respect of global talent, the same number of entrepreneurs (16%) believed that Brexit will remove the limits on non-EU immigration – making it easier to recruit skilled workers from outside the EU. Commenting on the findings, Hollie Gallagher, Head of the Entrepreneurs Team at Bircham Dyson Bell said: “The Entrepreneurs Optimism Index shows that despite entrepreneurs having real concerns over what Brexit will mean for their businesses they are also seeing enterprising opportunities on the horizon. This is evidenced by almost three quarters (69%) feeling confident to start a new business in the current economic climate and the increased potential to bring in skilled non-EU immigrants – a key issue for many entrepreneurs.”

Stuart Thomson, Head of Public Affairs at Bircham Dyson Bell, commented on the views of the entrepreneurs:

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“Despite the political uncertainty, entrepreneurs, a nimble and creative section of the business community, are alive to new possibilities. The Government will be keen to ensure that they are addressing the apprehensions of this integral part of the British economy and we will wait with baited breath to see the policies and initiatives put forward by the newly created Department for Business, Energy and Industrial Strategy.”

Bircham Dyson Bell LLP

Towards a Post-Brexit Deal: Why the Norway Model is not an option for the UK The unthinkable has happened twice: not only have the British voted to leave the EU, but also their vote has now prompted the negotiation of a new UK-EU deal.

Paradoxically, this might be less favourable to British interests than the renegotiation agreement that would have governed the UK-EU relationship in case of a Remain vote. Despite the clear outcome of the EU referendum, nobody in the UK seems ready to transform the popular vote into full action by triggering the procedure of withdrawal foreseen by the Treaty.

Amid the first severe economic, financial, and monetary consequences of the vote, there is little appetite to pursue a British exit of the European Union. The sudden realization of what a post-Brexit life could entail for their country nudged the new UK government to call for the negotiation of a new yet largely unqualified deal with the EU. Virtually all proposals currently circulating lack of a basic understanding of both the how’s and what’s of a new UK-EU agreement.

President Juncker first declared a ‘no notification, no negotiation’ stance before the European Parliament in the Post-Brexit debate, which has since been confirmed by the Britainless EU Council on 29th June. In other words, the EU and its Member States won’t open negotiations until the UK triggers Article 50 TEU, entailing its withdrawal from the EU. Indeed, even after the triggering of the withdrawal procedure, there is no legal obligation for the remaining EU countries to sign a new trade agreement with the UK. But let’s assume – as does Article 50 itself – that the withdrawal of the UK from the EU will concede to a new framework for its future relationship with the Union – how will it look?

A panoply of models of economic integration has been invoked thus far. Should a Norway, Norway-plus, a Turkey Custom Union model or the ‘bilaterals’ with Switzerland be followed? Even the recent EU trade agreements with Canada and Singapore have been cited as possible sources of inspiration.

The truth is that there are only a limited number of models for the UK to follow. Among those, the only one that could meet the Brexiters’ demand - to benefit from access to the internal market while being outside of the EU - is that

provided for by the European Economic Area, or ‘the Norway model’. This 1994 international agreement – which today binds the EU and its Members, including the UK, to three EFTA countries, Iceland, Liechtenstein and Norway – creates an internal market for the resulting 31 countries.

However, the entry ticket into the EEA is pricey.

First, the UK would be required to systematically accept EU legislations, without having the chance to take part in their policy formulation.

Second, the UK would have to continue paying into the EU budget (as Norway, Iceland and Liechtenstein do).

Third, the UK would remain subject to the jurisdiction of a supranational court, the EFTA Court, which – by virtue of the principle of homogeneity – is bound to the case law developed by the EU Court.

Last but not least, the UK would have to guarantee not only the free movement of goods, services, and capital but also that of people — throughout the 31 EEA States. Given the negative stance vis-à-vis free movement dominating the Leave camp, one may wonder how the UK will be able to depart from those rules within the EEA. While it is true that the EEA – unlike the EU – provides a safeguard clause allowing its Members to suspend some obligations, the very same clause permits the other parties to retaliate. So should the UK suspend the free movement of EU citizens, the EU could remove tariff preferences for UK products, such as cars, to the EU or limit EU market access for its financial services.

This explains why today’s calls refer to a ‘Norway plus’ model. Although largely unqualified, this new arrangement, complete with a renegotiation of the Free Movement of Persons Chapter, would aim at furthering the margins of maneuver of the UK within the EEA. Paradoxically, by entailing the loss of voting rights in the EU, such a ‘Norway plus’ model would still represent a worse deal than the one negotiated by David Cameron last February.

While Cameron’s renegotiation deal preserved full access to the internal market and voting rights, the one pursued by the Brexiters would free the UK from the Brussels bureaucracy and perhaps allow them to partly ‘control’ EU migration. That is the trade-off ahead of the forthcoming UK-EU deal.

But that’s not all. The Norway option is not necessarily a given for the UK. In fact, the UK joining the EEA does not only presuppose its withdrawing from the EU, but also the unanimity vote of the EFTA, comprised of four countries.

Only then could the UK again become part of the EEA, but will need to further obtain not only another unanimity vote of its 30 relevant countries, but also the support of the European Parliament. This process can be seen in reverse through Austria’s granting of a place within the EU in 1995, where the country lost its EFTA membership, but gained EEA access again as part of its union with the EU. As the Norway model is not an option, the renegotiation deal struck by David Cameron last February appears today a more plausible avenue for the UK-EU relationship. Yet that was the deal to be implemented in the case of a Remain vote, so I am unsurprised that no one seems ready to explain this to the 52% of British Leave voters.

Alberto Alemanno, Jean Monnet Professor, European Union Law, HEC Paris

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Brexit: Recent developments and what companies need to know now Two months after the U.K. voted to leave the EU, clarity has started to form around the Brexit process, though many questions remain unanswered.

In this video, corporate partner David Lakhdhir discusses how companies can start to manage their exposure to the risks a Brexit deal may bring, particularly in sectors likely to be directly impacted, such as the financial services and automotive industries.

Video: https://www.paulweiss. com/practices/region/ europe/videos/brexit-recentdevelopments-and-whatcompanies-need-to-know-now. aspx?id=22512

How to cope with a post - Brexit brain drain The UK could well be faced with losing top talent after the vote to leave the EU: Recent analysis carried out by desk-and-office-marketplace OfficeGenie.co.uk found searches for ‘work in the EU’ were up 243% in the weeks following the EU referendum.

Similar searches, for ‘work in’ a number of countries, also saw significant increases. So, who might be affected by this potential ‘brain drain’, and what can be done to reverse it? Peter Ames from OfficeGenie.co.uk looks at the impact of the findings.

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THE EFFECTS So if the post-Brexit Brain drain were to come to pass, which sectors and which businesses would most likely be hit?

Science and tech A tech-brain-drain was long feared by a number of experts in the UK, and if the data proves to be indicative of reality, it could well happen. London’s Tech City is currently seen as a shining light of innovation and the recent budget also put the focus on innovation across the ‘Northern Powerhouse’. However, the UK is highly reliant on its EU-member status (freedom of movement and access to the single market) to ensure they can attract and retain top talent, and investment, from both this country and abroad.

London is already a hugely expensive place in which to live and work, and Brexit might well make it less appealing to many. So, with the UK’s capital perhaps less lucrative, where might we see take its place as the place to start a business in Europe?

There are burgeoning startup scenes everywhere from Paris to Tel-Aviv (although the latter is not in the Union).

However, Berlin, one of Europe’s fastest-growing startup hotspots, could well be a potential destination for many. The city is already home to young, high-growth businesses such as SoundCloud and Delivery Hero (who recently bought Hungry House).

Indeed, some commentators in Germany have already described Brexit as a huge opportunity for their capital.

Cordelia Yzer, Senator for Technology and Innovation in Berlin, said: ““Those companies who have headquarters in London are aware that they need to be in the EU. “We had competition in the last two or three years between London and Berlin. I am convinced that more funds will now make the decision in favour of Berlin. We will now take advantage.

And this is more than fair.”

Education The UK’s higher education establishments have already had a turbulent year, with top British universities slipping down the world rankings. But the loss of leading academics post-Brexit is a real concern for many. Professor Stephen Curry of Imperial College London, speaking in the Times Higher Education, stated colleagues from the EU already felt unwelcome. In the same piece, Mike

Savage, UCL’s head of sociology, claimed to have received job offers from European universities, while a number of others suggested they were practically packing their bags already.

It’s not just universities that could be impacted, education at every level could well lose out on top teachers, who are increasingly looking abroad.

Data published before the referendum showed record numbers of British teachers are currently working overseas. This trend looks set to continue after the referendum, with indemand British teachers fleeing abroad.

Richard Gaskell, from the International Schools Consultancy, stated: “The EU referendum and the fall in the British pound has created an opportunity for international schools globally to maximise on Britain’s economic uncertainty.

“British teachers, who are in extremely high demand by international schools around the world, not only have the incentive of many new and different career opportunities but the chance, when paid in foreign currency, to earn comparatively more.”

Small businesses across the board As ever, it could well be a case of the smallest businesses being hit first, and hardest – many such organisations rely both on homegrown talent, and workers from abroad. The ‘double whammy’ potential loss of both of these could have a serious impact on the UK’s smallest businesses according to experts: Eugene Mizin, founder at Job Today, stated: “Access to talent will tighten, as fewer EU foreigners will enter Britain’s workforce, which will drive up hiring costs,” “As economic outlooks remain unclear, SMEs will look to spend less on recruiting and think twice before spending hundreds of pounds on job boards. Instead, SMEs will increasingly turn to referral and word of mouth hiring.”

Finance However, its not all doom and brain drain gloom. Early signs from the financial sector show the UK jobs market, at least in this field, could well benefit from Brexit. Britain leaving the

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EU will require leading financial minds to manage any potential risk, and capitalise on any opportunity.

Ann Swain, chief executive at APSCO, says” [I]t seems that despite cynicism from various commentators who have hypothesised on the immediate and sustained effect that the UK’s decision to leave the EU will have on hiring sentiment, we are yet to witness any significant impact.

“It seems that professionals are being drafted in to manage the finer points of future regulation in Europe’s financial hub.”

What can be done?

But, while there is pessimism from many sectors, what can a post-Brexit UK do to ensure it doesn’t lose its top talent to Europe and beyond?

Assure non - UK citizens they will remain The UK working population is a diverse one, and within hours of the referendum result there were calls for David Cameron to reassure European citizens, living and working in the UK, of their continued status. As well as personal livelihoods at stake, it is thought workers from EU countries contribute significantly morethan they take out of the UK economy. The UK needs to retain its best international talent, as well as its homegrown stars, if it wishes to remain a big player on the international stage. A major part of the post-referendum work will be to assure everyone they remain welcome in the UK, to live and work as they did pre-referendum.

Free trade agreements While the basis of much leave campaigning focused on issues around limitingimmigration, freedom of movement is going to be a key factor to prevent a”brain-drain”. Many European countries, which are not in the EU, have agreements, which allow them to exchange access to the single market for freedom of movement for EU citizens.

Interestingly, many of the most popular destinations for escapee workers were in fact non-EU countries. However, the top three, Iceland, Switzerland and Norway, have such agreements in place. One option, sought by many post-Brexit, is for the UK to establish such a relationship with its former unionmates.

UK - wide investment One of the key points in George Osborne’s 2016 budget was to stress the importance of the UK’s “Northern Powerhouse” and wider regional economies.

It proposed everything from infrastructure improvements (i.e. cross-Pennine railway, HS3) to greater devolution of power to regional mayors. There was also the promise of investment in innovative schemes across the country; Newcastle’s Institute for Smart Data and the Sheffield Enterprise Zone to name but two. In creating a viable, lowercost, alternative to central London, the British government can present a wider variety of appealing centres of innovation. While there has been no revised “Brexit Budget”, these must not fall by the wayside, and more may well be needed, to increase the appeal of the whole of the UK. The key word surrounding Britain’s decision on 23rd of June is “uncertainty”, and indeed none of the above can be certain. What is essential however, is that those in charge of negotiating the UK’s EU exit, consider the very real possibility of a “brain drain” and how they might prevent and reverse it.

Peter Ames, Head of Strategy, OfficeGenie.co.uk

How to stay strong during Brexit business uncertainty We are living in undeniably tumultuous times. A referendum result that few sawcoming, widespread political upheaval, with a new Prime Minister and an opposition party in turmoil, businesses such as Vodafone and EasyJet openly discussing moving their HQ from the UK, the pound at its lowest levels in decades and stock market volatility.

The biggest challenge of all, certainly for those in business and most definitely for those involved in M&A activity, is the sheer uncertainty – how long will all this last, when will the UK actually leave the EU and will Brexit ultimately be a good or a bad thing? If your business is on the brink of acquiring another business heavily involved in Europe, how will the acquisition be impacted? A need for “business as usual”.

All this uncertainty has brought out the pessimist in many business commentators and observers, with a number of doom and gloom predictions for the UK economy. But the truth is, no-one knows for sure what will happen. The one thing we do know for sure is that the new Prime Minister has stated clearly that Brexit means Brexit – there will be no second referendum and at some stage, the UK will leave the EU. This does at least give some clarity, and it is time for businesses to be bold, strong and look for opportunities from Brexit, rather than bemoaning how it may impact them negatively. If a merger was in the offing prior to the referendum, then there is no concrete reason why that merger should not proceed as planned – businesses cannot sit around waiting.

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In July the president of the European Central Bank, Mario Draghi, played down fears about the wider impact of Brexit. He stated that we should all take warnings of a severe economic slowdown with a “grain of caution”, so it’s time to be optimistic – here are our tips for staying strong during the current Brexit uncertainty.

1) Expand and develop as planned – if business was good before the referendum it is important to not lose sight of what got you there. There has been much talk of organisations putting expansion plans on hold, but I struggle to see why they would do that.

Our main expansion for 2016 will be the opening of an office in the US, but if further opportunities arise in Europe then we certainly won’t shy away from those. After leaving, the UK will have a GDP of nearly 25% of the EU, so it’s hard to take too seriously any worries about us not having a trade agreement.

Whether expansion comes in the form of an acquisition, new office or something else, now is the time to bold, not circumspect.

2) Turn uncertainty to your own advantage – the current uncertainty is by no means ideal, but can be played to your own business advantage. These are the times when strong, confident leadership and speedy decision making can steer an organisations through any uncertainty.

3) If your competitors are being cautious in their plans – expansion, recruitment, and acquisitions – then this is a real opportunity to steal a march by being decisive. You may be able to hire better people, to identify acquisition targets and even to win new customers. If your competitors are hunkering down and seeing how the Brexit situation plays out, then you can take advantage.

4) Ensure strong governance - any organisation moving their HQ will undoubtedly face a number of challenges, and this will require strong governance at the very highest level.

Not only do compliance requirements and jurisdictions vary from country to country, but also such a complex process as moving location needs absolute transparency at board level.

Employees, shareholders, customers and other stakeholders will all want to know why certain decisions have been made and what the rationale was behind any relocation.

The same applies for an organisation involved in M&A activity. Compliance and governance are a vital part of this process at any time, but even more so in the current climate. Furthermore, people increasingly expect businesses to be open and transparent in their operations and in what goes on at board level. This is even truer in the turbulent post-referendum economic and politic climate.

Alister Esam. CEO, eShare, the governance and meeting software provider

Britain votes to leave the EU what is the impact on M&A? Business as Usual?

So after weeks and months of debate and controversy, although we have been discussing this since we entered the Common Market in 1973, we finally know –the UK public has voted OUT. Britain has taken the first, pioneering step out. Many EU member countries have long struggled with the EU’s sclerotic nature and this step will undoubtedly pose the same question for others. We need to support the decision and move forward. Business leaders need to analyse this new environment, hold their nerve and set aligned strategies for success.

News is emerging by the second. At time of writing, Cameron is planning to resign and appoint a new PM by October this year. He intends to invoke Article 50 of the Lisbon treaty which sets out the rules of negotiating

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a member state’s departure. This provides at least 2 years to finalise the deal between the 2 parties. If we are out-out, we will fall under World Trade Organisation rules, or like Norway or Switzerland, we could become part of the European Economic Area. This would mean Britain would remain part of the EU’s single market, without having to comply with free labour movement or all of the other EU regulations (although in practice it would be the majority). Having been a key player in the EU economy, it is likely that we will, after hard negotiation, beoffered favourable terms creating new opportunities.

Before we take a look at the detail of the impact of the decision and react instinctively, we need to remember Black Wednesday in 1992. The UK enteredthe European Exchange Rate Mechanism (ERM) in 1990 as a prerequisite for adopting the Euro but was forced to exit following pressure from currency speculators. The UK then secured an opt-out from the Euro under the Maastricht Treaty. This was seen initially by many business leaders as catastrophic and the demise of the British Economy. With the benefit of hindsight, we now know that not adopting the Euro was a good thing for Britain. This morning sterlingdropped by 7% but this is still higher than it was on 11th February this year. The stock market dropped this morning but not as drastically as anticipated and there has already been a bounce, all signs the market is ready for this decision.

So, what does this mean for M&A, for business sellers, buyers and investors? The power that enabled the Conservatives to renegotiate our EU agreement is largely attributed to the fact that whilst we trade within Europe we also trade extensively in non-EU territories, predominately the US, Asia and South America –more so than any other country in the EU. UK exports to non-EU territories accounts for approximately 67% of all of our exports. This means we are not, by any means wholly dependent on the EU for exports; Germany in particular will still want us to buy their cars.

Acquirers have long since known that the referendum was coming. M&A statistics show that whilst there has been an 8% drop on last year’s deal volumes this has by no means put the vast majority of buyers off. Britain may be leaving the EU but it cannot leave Europe – trade will continue; we just need to define how that will be done.

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Businesses do not invest in the UK purely because of our EU membership.

They also invest because of our stable financial, regulatory and legal systems not to mention having one of the lowest corporation tax rates in the G20.

The numberof international acquirers of UK companies continues to increase, accounting for 44% of all announced transactions in the past year. A temporary devaluation ofthe pound may in fact increase the attractiveness of acquisitions and remember that acquisitions are always an attractive route to expansion in a slow growth economy.

UK business is robust. It has battled through the global recession and has come out agile and resilient. We are used to operating in a fast-changing and volatile world – think collapsing oil prices, Chinese instability and the Eurozone and Middle East crisis. UK business and will analyse the effects of the EU exit, plan, adapt, invest wisely, survive and more than likely thrive which can only be a good thing for M&A.

Moving on from the EU exit What do we know? What is the impact on UK business and M&A? The referendum result created a cloud of shock as uncertainty descended over the UK. Now, a week on, as the dust settles, we are absorbing the facts and making strategic plans to succeed.

Let’s take a look at what we know.

• We are in a period of ambiguity whilst the economy adjusts and new trading relationships (both country and corporate) are formed. If Article 50 of the Lisbon treaty is invoked, it is likely to be in September this year, under a new Conservative Prime Minister, meaning that we will seek to finalise our exit by September 2018.

Uncertainty is the new certainty but this has been the case since globalisation.

Rapid market change has long since been the norm and business leaders create new techniques, skills and strategies to succeed.

Whoever replaces David Cameron will be seeking access to the EU single market whilst reducing freedom of

movement. To secure a deal on these lines relies on two elements; firstly, that we are a significant and material trading partner and secondly, that others in Europe with similar thinking on restricting free movement gain political momentum and force a softening of the EU mindset.

• The Bank of England (BoE) and the Treasury engaged in extensive contingency planning and were fully prepared for an out vote. Mark Carney, BoE, stated DzBrexit will not cause financial crisisdz. As a result, UK banks have raised over £130bn of capital, and now have more than £600bn of high quality liquid assets. Moreover, as a backstop, and to support the functioning of markets, the BoE stands ready to provide more than £250bn of additional funds through its normal facilities.

The markets are picking up following the initial shock of the exit vote: Having dropped 5% on Monday, the FTSE 100 share index has now climbed to the highest it has been in this year. The FTSE 250 is slowly but surely creeping back, closing 3.2% higher,recovering nearly half of the post Brexit drop. The pound climbed 1.2% against the dollar having tumbled 11% two days after Brexit and 0.8% up against the euro to 1.2159, prior to the referendum it was trading at 1.30. The pound is still higher than it was three years ago against the Euro Global markets steadied as a result of the BoE pumping in £3.1b into British banks Richard Gnodde, Co-Chief Executive of Goldman Sachs International, told The Times CEO Summit that markets had functioned well since Friday but were likely to drop further. “There is no panic. Markets are functioning normally. We need to find new levels.

The period of price discovery is going to go on for some time” he said.

Against this backdrop, what is the impact on M&A? • It is likely that on a macro basis, if we include larger transactions, volumes will drop until the landscape becomes more clearly defined.

• On a micro basis, in the small and mid-cap markets, transactions are likely to continue. Corporate restructuring is essential in a slow growth economy, and M&A is the main route to shareholder value.

• With investment yields poor and interest rates low, the world is awash with capital. Nine private equity firms have called Avondale over the last few days as they have funding in place that still needs a home. It is possible that deal structures become more creative as banks tighten their ‘credit belts’ but this does not stop the fundamental drivers behind deals.

• Profits will soften in some sectors which actually creates opportunity for those with capital, and a lower value pound will potentially reassure foreign investors.

We need measured, pro-business leadership from the Government in the coming months. Combined with careful negotiation in the EU and calm minds, this should and could enable us to adopt a ‘business as usual’ approach.

Indeed, quality assets with sustainable cash-flow and high growth potential become more desirable, not less, in any market slowdown. Over the coming months, this will hopefully create an increase in demand in the smaller capital M&A market.

As we’ve said before, UK business in robust, agile and resilient. This time we have the benefit of over two years to adjust to our new environment, which is plenty of time to implement strategies for success and to thrive rather than just survive in our non-EU status. This can only be a good thing for M&A.

Overall we need to look at how people behave and what they do, and not guess, or speculate. For example, if new car sales continue and the supply and demand issues hold value in the housing market, consumers will remain robust which along with exports and financial services are key drivers for our economy. Many economists predict, at worst, slowdown in growth but not a recession, ie two consecutive quarters of negative growth.

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The impact on mergers and acquisitions From a legal perspective, private mergers and acquisitions (“M&A”) are unlikely to be affected by Brexit because, firstly, any EU Directives or regulations directly affecting this area of law require implementation into UK law in order to have effect and secondly, the documentation relating to M&A are reliant on English law and the exclusive jurisdictions of the English court. Brexit does, however, result in some practical and commercial implications on existing and potential deals.

Clients are advised to commence due diligence of existing contractual arrangements to consider whether any contractual rights arise on a Brexit; for example, is Brexit a material adverse change? Other provisions to review as part of such due diligence exercise include financial covenants, events of default/termination rights, ratchets and force majeure.

Contracts governed by English law, will be interpreted in accordance with the general principles of English law. The courts will consider the intention of the parties in relation to the terms of the agreement if the meaning of the relevant provision is not clear from the drafting. For example, if a material adverse change clause is drafted in a broad general nature then it is unlikely that Brexit would enable the bidder or the purchaser to rely on such a clause to terminate the agreement as either (i) the effects of Brexit would not be deemed specific enough in the context of the relevant transaction; or (ii) such a general market risk may have been expressly carved out from a general material adverse effect clause.

On the other hand, if the material adverse change clause is drafted to target a specific business in a specific sector or geographic location, then there is a higher risk of the material adverse effect clause being invoked by either the bidder or the purchaser. Alternatively, the material adverse effect clause may specifically make reference to Brexit. Under both circumstances, the courts would be more inclined to conclude that it is the intention of the parties that Brexit be deemed as a material adverse change.

Public M&A? Any proposed acquisition of a UK public company is subject to the UK Takeover Code. Although the UK Code implemented the EU Takeovers Directive, the Directive itself contains a large number of UK specific rules and has over time adapted to both UK and global market conditions.

It is, therefore, expected that these rules will continue substantially in the same format. There may be some amendments to the UK Takeover Code to reflect Brexit and adapt to the shift in the market, however, we consider it unlikely that Brexit would prompt dramatic changes to the UK takeover rules.

Company Law Legislation The Companies Act 2006 is the main piece of legislation governing the incorporation and operations of UK companies. Some of the provisions, albeit a minority, derive from EU Directives, such as the Company Law Directives, the Shareholder Rights Directive, the Transparency Directive and the EU Accounting Directives, which could be repealed.

These provisions may be reviewed now the UK has voted to leave the EU but we would not expect a radical overhaul to be made. Companies are unlikely to experience a high impact in terms of operative and administrative matters such as the M&A process but over time there may be an increase in divergence between EU and UK company law; indeed the UK Government may seek to further liberalise the law in this area to enhance the UK’s reputation as one of the most attractive jurisdictions to establish a company in.

Cross border mergers Assuming that Brexit takes the form of a total exit from the EU and the EU single market, the EU Cross Border Mergers Directive, which has been enacted into UK legislation which allows mergers between companies incorporated in different EEA states provided that the merger consists of companies from different EEA member states will most likely cease to be available in the UK. Under such framework following Brexit, such mergers will no longer be possible as the UK would fall outside of the definition of EEA member states.

European companies The European Company Statute allows a company, a European public limited company (Societas Europaea (“SE”)) subject to EU-wide laws, to be formed in any EU member state. Although such entities have not proved to be that popular, all existing SEs whether incorporated in the UK or not will be affected now the UK has voted in favour of leaving the EU. These entities should consider whether they are currently located in the optimal jurisdiction in light of their medium to long term strategy and to utilise the mechanisms available to them prior to Brexit should they wish to move because the SE Regulations will cease to have effect in the UK.

An overview On 23 June 2016, in public referendum, the British public voted in favour of the UK leaving the EU (“Brexit”). As a result of the uncertainty caused in the run up to the referendum, the financial markets and transactional activity in the UK has been markedly lower this year. This uncertainty will now continue for a number of reasons.

Firstly, the question posed at the referendum decided that the UK should leave the EU, but it did not (and did not have the power to) determine how that exit will occur or the nature of the UK’s relationship with the EU following Brexit.

This will be the first time that a significant member of the EU has left and there is

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no detailed mechanism in the treaties establishing the European Union for a member to exit.

Article 50 of the Treaty on the European Union requires a member state which wants to withdraw from the EU to notify the European Council of its intention to secede. The referendum result in the UK does not constitute such notice and the timing of service of such notice is likely to be a matter of intense political discussion in the UK in the coming weeks or months. Following service of an Article 50 notice, a withdrawal agreement between the UK and the EU will then need to be negotiated. Brexit will occur on the earlier of the date of the UK withdrawal agreement or the second anniversary of the notification to the European Council (unless all remaining member states agree to extend this period).

There is no clarity on the trading arrangements which will apply in respect of the UK after Brexit: as part of the Brexit negotiations, Britain will undoubtedly seek to arrange an appropriate free trade agreement with the EU. However, other European countries which have free trade agreements with the EU have also been required to accept certain fundamental EU principles, such as free movement of workers and, given that immigration into the UK was one of the principal concerns of those in favour of Brexit, it remains to be seen whether a free trade arrangement can be agreed between the UK and the EU. In addition, following Brexit, the UK will be unlikely to benefit from the free trade agreements which the EU has entered into with many countries worldwide and it will need to negotiate new free trade agreements with countries outside the EU. Accordingly, the precise impact of the Brexit decision on the UK as a place to do business and on the UK legal system will likely take at least two years, perhaps longer, to determine which will only become clearer as the negotiations surrounding Brexit progress.

Author: Paul Hastings

Brexit and M&A : uncertain times call for uncertain measures Brexit has thrown much into doubt; the only certainty following Britain’s vote to leave the European Union after more than forty years of membership is the lack of certainty.

This uncertainty has percolated through to the M&A market, with activity value in the UK dropping 51% on-quarter in the April-June period, from $38.9bn to $19.3bn. For the moment, many companies are postponing deals while they take stock and consider their options. In the longer-term, we are faced with at least one profound question: what will the impact of Brexit be on M&A activity?

For the time being, from a legal perspective, nothing has changed. As Donald Tusk was eager to remind Theresa May and the wider electorate, the UK remains a full member of the European Union, with continued access to the single market. Against a backdrop of government dithering, the status quo may prevail for a little longer.

That said, M&A valuations and transactions might be revalued, whilst companies eager to establish a European presence may consider other jurisdictions in which to base their hubs. Until a decision is made though, we will not know the full extent to which existing laws can and will be amended or repealed. For those undertaking M&A activity, the following areas should be kept in mind:

The structure and execution of UK private M&A transactions should not to be materially impacted as EU-derived legislation plays little part in the laws governing such transactions.

• For public company acquisitions there are unlikely to be substantial changes to the UK Takeover Code. The Code is a universally accepted and respected regime, which pre-dates the EU Takeover Directive and influenced the approach taken in the Directive.

• The nature of intellectual property rights will be affected along with the ability to enforce them. National rights will remain unaffected, but Community Trade Marks and Community Design Rights may cease to apply to the UK. • The UK data protection laws are derived from the EU regime. If the UK Government elects to stay out of the EEA it has the option to amend the current legislation. However, the UK will want to ensure that it has a regime, which is regarded as acceptable, by the remaining EU countries.

• The impact of certain EU-derived employment regulations on labour relations, for example the Working Time Regulations, may be affected over time if the UK adopts a more laissez faire approach to the employment relationship.

Naturally, a great deal of uncertainty surrounding the impact of Britain’s EU exit on domestic law will dissipate when an agreement on the UK’s post-Brexit relationship is reached.

Though the outcome of the negotiation is far from certain, it should be remembered that each of the most commonly discussed models for the UK’s new relationship with Europe could have some effect on M&A. 1. ‘Swiss model’ – sees the UK leave the EU and join EFTA, but not the EEA. Consequently, the UK Government would need to negotiate a series of bilateral agreements with the EU to secure access to the single market. In this model, the UK will have greater flexibility to change its laws and move away from the EU regulations. As such, this model presents greater uncertainty and so companies contemplating or engaged in M&A activity will need to be nimble to react to the changing regulatory framework around M&A and also those areas of law which impact on the running of UK businesses, such as tax, employment, intellectual property and data protection.

2. ‘Norwegian model’ – this sees the UK leave the EU and join the European Economic Area (EEA) and European Free Trade Association (EFTA), accepting the principles of free movement of goods, services, capital and people in exchange for access to the single market. This is possibly the lightest touch in terms of change and so the effect will be minimal.

For example, the EU Takeover Directive and the EU Merger Regulations, which provide a single competition clearance process across the EU, will both continue to apply.

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3. Total exit from the EU and the single market – the UK would either rely on the rules of the World Trade Organisation to continue trading with the EU, or would seek to negotiate a new free trade agreement. The issues facing the UK M&A market in a total exit scenario are very similar to that under a Swiss model and acquisitive companies must be able to react to the changes that would follow.

When determining the way forward, the government will, of course, consider the likely effect of each model on the UK economy. So if the UK does leave the EU, but does not join the EEA, the temptation to cut red tape must be weighed against the potential impact on UK businesses trading or operating in the EU. At present, we must wait and see what happens; decisions affecting our future relationship with Europe are out of the hands of those at the forefront of the M&A market.

Businesses should not panic, however. Andrea Leadsom’s withdrawal from the Conservative Party leadership election has made the appointment of a new prime minister more expeditious than it might have been and has restored some direction for the country. We would also assume that the UK Government would not wish to make the UK unattractive for businesses to operate and to trade with the EU, and therefore maintain the UK’s strong position as an investible jurisdiction.

No Lehman moment What is clear is that the impact of Brexit is not as global as the Financial Crisis of 2009. Under our Central Scenario global M&A transaction activity is only modestly down for the next two years before fully recovering. And while domestic UK deals are down under either scenario there will still be plenty of London based activity.

Tim Gee, London M&A partner, Baker & McKenzie says, “Regardless of the volume and value of UK specific deals the primacy of English law for many cross-border deals, even when they don’t involve UK assets or business, will continue.

London will also retain a remarkable concentration of financial, legal and economic talent.

“In the last few days we have seen evidence that the M&A market in the UK won’t come to a crashing halt even if it won’t be at its previous pace. There are still plenty of buyers and sellers for the right deal at the right price. There are already some clear upsides - global organizations looking to acquire UK companies will find that a weaker pound makes UK valuations more attractive, although the uncertainty surrounding trade negotiations could deter the more risk averse.”

Sam Pearse, Partner, Pillsbury Law

Central Scenario - orderly exit

Counting the cost oF Brexit on UK, European and Global M&A

Capital markets in the UK and the rest of Europe have already been hit hard by the uncertainties surrounding the UK’s relationship with the EU as the Cross Border IPO and Cross Border M&A indices Baker & McKenzie released last week highlighted, with EMEA IPO and M&A activity down by 50% and 17% respectively in the first half of 2016.

• No ‘Lehman-like’ crash in global activity • UK M&A levels will take four years to recover parity with ‘No Brexit’ predictions as vote will cost the UK economy at least US$ 240 billion in lost M&A • Significant short term impact on European activity if further political uncertainty The post UK referendum global M&A market could face a deficit of up to US$ 1.6 trillion in lost merger and acquisition activity unless an orderly and swift Brexit process is followed.

Baker & McKenzie’s Global Transactions Forecast, based on financial modeling by Oxford Economics (OE), shows the potential scale of the damage both an orderly and disorderly exit by the UK from the EU could do to markets and deal making activity. Unsurprisingly the impact is disproportionately felt in the UK and rest of Europe.

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The central scenario of the Transactions Forecast suggests more of the same, even with a relatively quick and painless Brexit leaving access to the single market in place. With GDP forecasts for the UK halved to 1.1% growth in 2017, M&A transactions will also fall by 33% next year with, a cumulative drop of US$ 240 billion (or 24% drop) over the next five years and a recovery only by 2020 to parity with the no Brexit scenario. The picture for IPOs is equally depressed as these flows tend to be even more sensitive to confidence effects than M&A transactions, so the UK market is likely to remain relatively quiet over at least the next couple of years.

Michael DeFranco, Global Chair of M&A at Baker & McKenzie: “An active M&A market is all about confidence and credibility. To restore that confidence the UK Government will need to get to grips with the enormous challenge of negotiating a new trading relationship with the EU as quickly as practically possible. Otherwise we move into more dangerous territory.”

The central scenario assumes that spillovers to markets outside the UK are modest with M&A levels in Europe falling by 8% in both 2017 and 2018 but recovering by 2019.

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Adverse Scenario - disorderly exit However without a clear Brexit roadmap a more damaging cycle of political and market uncertainty could be unleashed with subsequent repercussions for transaction activity globally. In this ‘adverse Brexit scenario’, the UK vote to leave adds to the existing strength of populist mood across Europe leading to further questions about the unity and stability of both. Lack of available resource and the complexity of renegotiations as well as lack of access to the single market hamper substantive progress on Brexit.

Under the more adverse scenario with heightened uncertainty about the future political and economic landscape in Europe, business confidence is hit hard and near-term investment plans scaled back. Over the five years, UK M&A would be down 34% or US$ 340 billion and there is a significant slowdown in Eurozone GDP growth, which eases to 1.0% in 2017 and 1.2% in 2018, M&A activity in Europe (ex. UK) is predicted to be almost 40% lower in 2017 than would have been the case if the UK had voted to remain in the EU. Under both the Central Scenario and the Brexit Adverse Scenario global M&A levels would be impacted but less dramatically and the recovery to the ‘no Brexit’ forecast would be quicker. That said, the forecast suggests that with an adverse Brexit scenario Global M&A levels in 2017 and 2018 would be 19% or over US$ 1.17 trillion lower.

UK underperforms as "Brexit" uncertainty fails to dent M&A in rest of Europe • Europe, Middle East & Africa (EMEA) outperforms all global regions • UK early-stage M&A declines • Globally, FY 2016 will see flat, or only slight, growth in M&A announcements, due to weakness in North America Despite uncertainty surrounding the timetable and shape of “Brexit”, the EMEA region showed the strongest growth in early-stage merger and acquisition (M&A) activity in Q2 2016 at 15.7% year-on-year, compared to global growth of only 1.2%. The UK, however, is underperforming the rest of Europe, with UK early-stage M&A activity declining by 1.4% in the same period. Due to the length of a typical deal cycle, early-stage M&A activity in Q2 2016 is a strong indicator of future M&A announcements in Q4 2016.

This is according to the latest Intralinks Deal Flow Predictor report released by Intralinks® Holdings, Inc. (NYSE:IL), the leading global provider of software and services for managing M&A transactions. EMEA’s strong Q2 2016 performance is being driven by increasing deal pipelines in France, Italy and Spain, which grew by 34.3 percent, 15.4 percent and 28.4 percent, respectively.

While Q2 2016 only includes one week of data after the UK’s EU membership referendum, early indications from the Intralinks Deal Flow Predictor data since June 23 appear to support the continued divergence of UK and European M&A: in the 4-week period after June 23 2016 compared to the same 4-week period last year, early-stage M&A activity in EMEA, excluding the UK, rose by 19.8 percent whereas in the UK it declined by 7.4 percent.

The Intralinks Deal Flow Predictor also reveals that EMEA deal pipelines are increasing fastest in the Healthcare, Energy & Power, Consumer & Retail, and Industrials sectors, while the Materials and TMT (Telecoms, Media & Technology) sectors are weakening.

The Intralinks Deal Flow Predictor forecasts the volume of future M&A announcements by tracking early-stage M&A activity – sell-side M&A transactions across the world that are in the preparation stage or have reached the due diligence stage. These early-stage deals are, on average, six months away from their public announcement.

“The EMEA region is facing a lot of uncertainty at the moment, and yet it’s still beating early-stage M&A growth across the rest of the world,” said Philip Whitchelo, Intralinks’ vice president of strategy and product marketing. “The fallout from the UK’s vote for Brexit is certainly top of mind for many firms, but we are also seeing European dealmakers adopting a “keep calm and carry on” approach, and starting more deals than last year. With regards to M&A, in the short term at least, European assets could see increased demand.

UK assets, however, may have too much risk attached for some acquirers, despite their relative attractiveness after the sharp drop in the value of the pound.”

Germany, meanwhile, has been able to bounce back and is once again showing positive growth in early-stage M&A activity of 9 percent in Q2 2016, following volatility over the previous four quarters. “German Chancellor Angela Merkel’s steady hand in dealing with the German economy is allowing German companies to proceed with investment plans with greater confidence”, said Philip Whitchelo. “Looking ahead, Merkel’s challenge will be to apply the tough but levelheaded approach that she has become known for to the UK’s exit negotiations with the EU, particularly with regard to the UK’s continued access to European markets, while at the same time doing what she can to deter other countries from following suit and leaving the EU,” he added.

Other global highlights from the Intralinks Deal Flow Predictor report include: • In North America (NA), early-stage M&A activity declined by 11.2 percent compared to the same period last year - the second consecutive quarter of declining activity. A slowdown in US economic growth, the prospect of further interest rate rises by the US Federal Reserve in 2016 and uncertainty over the outcome of the US Presidential election in November have combined to cause NA dealmakers to pause for breath in 1H 2016.

• In Asia-Pacific (APAC), early-stage M&A activity declined very slightly by 0.4 percent. South East Asia (down 47.8 percent) and North Asia (down 8.3 percent), are showing the weakest levels of growth, with the rest of the region, especially India and Australia, performing strongly.

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• LATAM has staged a recovery in Q2 2016: despite the continued slump in Brazil (down 1.8 percent) and weakness in Mexico (down 29.4 percent), most other countries in the region are showing double-digit increases in early-stage M&A activity. Despite the boost to the Brazilian economy from Olympics-related spending, Brazil is enduring its worst recession in over 100 years as the economy continues to struggle due to its heavy reliance on commodity exports, the prices of which have been hit hard by the slowdown in Chinese demand.

The Intralinks Deal Flow Predictor has been independently verified as an accurate predictor of future changes in the global number of announced M&A transactions, as reported

by Thomson Reuters.

Report: https://www.intralinks.com/resources/ publications/deal-flow-predictor-2016q4

The first saw Agilitas Private Equity LLP, the UK-based private equity firm acquire Exemplar Health Care Ltd, the UK-based mental health and physical and learning disabilities residential nursing care homes operator, for 180m. The continued investor interest in high acuity specialist care is seen as a safer investment than publically funded elderly or domiciliary care services, where there is more rationing of public funds.

Second, Synova Capital LLP, the UK-based private equity business acquired Oakland Primecare Limited, the UK-based luxury care home operator, for 36m. The UK high-end, self-pay elderly market offers investors good returns and attractive levels of demand, growing steadily with the ageing population demographics.

Also this month we saw The Carlyle Group, the US-based private equity house acquire a majority stake in Akari Care Limited, the UK-based provider of residential care activities for the elderly and disabled. This deal showed international investors remain interested in high quality healthcare assets.

There are a number of other care homes believed to be coming to market in the coming months and all are expected to attract private equity interest: • SARQuavitae, the Spanish operator of nursing homes and other facilities is rumoured to be coming up for sale by their backers Palamon Capital; • Brookdale Senior Living are believed to be selling 44 communities in the US with a revenue of 80m; and

Intralinks Deal Flow Predictor ®

Our quarterly prediction of future trends in the global M&A market

>

Forecast of global M&A activity through Q4 2016 Includes a spotlight feature on the UK’s vote to leave the European Union and guest commentary by Jonathan Silver, Partner at Clyde & Co, on investing in Iran

• The Priory Group, the UK-based specialist and rehabilitation services provider are considering the divestment of some assets, due to the Competition and Markets Authority.

At Clearwater International we believe we will continue to see private equity investment into the care home sector with particular areas of interest being the private pay and high acuity care markets. While Britain and Europe ride out the current wave of uncertainty, you can find more insight into the European residential care market in the calm waters of our recent Healthcare Assets Clearthought.

Medical Equipment & Supplies STAR Capital Partners Limited, the UK-based private equity firm acquired Synergy Health Managed Services Limited, the UK-based manufacturer of sterile and non-sterile surgical linen packs from Steris Plc, the UK-listed, US-based manufacturer of infection prevention, contamination control, and surgical support products, for 60m.

M&A activity in care home market following Brexit Following on from Britain’s EU referendum decision we have seen a new prime minister in place and a sense of normality slowly beginning to return. While some critics branded the decision as disastrous, fearing that Britain would become a less attractive destination for investment, this does not seem to have materialised in the short term. This month alone we have seen three deals involving private equity companies acquiring UK health & social care homes.

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RoundTable Healthcare Management, LLC, the US-based healthcare-focused private equity firm acquired and delisted Symmetry Surgical Inc., the US-based manufacturer of retractor systems, sterilisation devices and surgical instruments, for 124m.

Terumo Corporation, a listed Japan-based manufacturer of medical products and equipment acquired Sequent Medical, Inc., a US-based developer of neurovascular devices, for 336m.

Zimmer Biomet Holdings, Inc., the listed US provider of musculoskeletal healthcare products and systems acquired a 58.8% stake in MedTech SA, the France-based robotics company with interests in minimally invasive neurological and spinal procedures, for 112m. Zimmer Biomet have also made a tender offer to buy the remaining 41.2%.

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GE Healthcare Ltd, the UK-based medical imaging and information technologies provider acquired Biosafe SA, the Switzerland-based cell processing products manufacturer.

Sinocare Inc. the listed China-based developer of point-of-care testing products acquired CHEK Diagnostics, the US-based manufacturer of point-of-care and home diagnostic testing tools, for 174m.

Steris Plc, the US-listed, UK-based manufacturer of infection prevention, surgical and gastrointestinal products acquired Medisafe UK Limited, the UK-based developer and installer of sonic irrigation equipment and accessories, for 32m.

Frontier Resources International Plc, the listed UK investment firm acquired Concepta Diagnostics Limited, the UK-based fertility products developer, for 4m.

Jazz Pharmaceuticals Plc, the listed Ireland-based neurologic and psychiatric disorder speciality pharmaceutical manufacturer acquired Celator Pharmaceuticals, Inc., the US-based oncology-focused biopharmaceutical company, for 1.1bn.

Hansa Medical AB, the listed Sweden-based biopharmaceutical company, focused on developing novel immunomodulatory enzymes acquired Immago Biosystems Ltd, UK-based developer of antibody based cancer therapies using antibody-modulating enzymes.

Merck & Co., Inc., the listed US-based manufacturer of vaccines and medicines acquired Afferent Pharmaceuticals, Inc., the US-based neurogenic disorders pharmaceutical manufacturer, for 1.1bn.

Health & Social Care

Author: Clearwater International

Orpea SA, the listed France-based nursing home and clinic operator acquired a 66.5% stake in Sanyres Sur, S.L, the Spain-based operator of residences and resorts for seniors, for approximately 150m.

IMF should not point finger at Brexit for slow down in global growth - City lawyer claims

MedData, Inc., the US-based provider of revenue cycle management and patient financial lifecycle services acquired Cardon Outreach, LLC, the US-based provider of services and technology solutions to healthcare facilities, for 354m.

VPS Healthcare Ltd, the UAE-based operator of healthcare facilities acquired Rockland Hospitals (Qutab) Limited, the India-based operator of a chain of multi-speciality hospitals, for 201m.

Leonard Green & Partners, L.P., the US-based private equity firm acquired and delisted ExamWorks Group, Inc., the USbased provider of independent medical examinations (IMEs), peer and bill reviews, and related services, for 1.7bn.

Pharma & Biotechnology Alivira Animal Health Ltd, the Ireland-based veterinary active pharmaceutical ingredient (API) and formulation manufacturer acquired a 60% stake in Vila Vina Participacions SL, the Spain-based veterinary medical and nutritional product manufacturer, for 12m.

Arbor Pharmaceuticals, LLC, the US-based speciality pharmaceutical company acquired and delisted Xenoport, Inc., the US-based neurological biopharmaceutical company, for 407m.

Bristol-Myers Squibb Company, the listed US-based manufacturer of pharmaceutical and nutritional products, has acquired Cormorant Pharmaceuticals AB, the Sweden-based developer of cancer and rare disease therapeutics, for 469m.

Albany Molecular Research Inc., the listed US contract research and manufacturing company acquired Euticals S.p.a., the Italy-based manufacturer of APIs, customs synthesis, and fine chemical products, for 310m.

Macarthy’s Laboratories Ltd (aka. Martindale Pharma), the UK-based speciality pharmaceutical company acquired Viridian Pharma, the UK-based developer and supplier of niche pharmaceutical products.

A leading City lawyer believes that the IMF has unfairly blamed Brexit for a slowdown in global growth predictions.

This week, the International Monetary Fund (IMF) ditched its original forecasts for an upturn in global growth this year, citing the fallout from Brexit as one of the main reasons.

As it stands, the IMF still expects the British economy to grow 1.7 percent this year, down from a projection of 1.9 percent in April. The IMF cut its forecast for British growth in 2017 by 0.9 percentage point to 1.3 percent.

According to Rufus Ballaster, a partner who leads City-based Carter Lemon Camerons LLP’s commercial property team, growth forecasts are more often wrong than right and he argues that Brexit cannot be blamed for everything.

“We at Carter Lemon Camerons could sense a slow down before the Referendum result,” Rufus Ballaster says: “The IMF is looking at data rather than making political comment and it may genuinely accidentally be indulging in a bit of self-fulfilling prophesy. The reduction of growth prediction worldwide cannot be entirely due to fallout from Brexit. The UK is part of the EU and will remain so for at least 24 more months on current expectation. The growth prediction changes fall within that period.

“What the IMF is saying is that the sort of mind-set that leads the UK to have a 52 per cent leave outcome to a referendum “in or out” has wider application and there is a very real risk of business being less global, less adventurous and more insular, resulting in more slow and steady growth.”

Rufus continues: “Then again, Aesop has something to say about slow and steady as a good thing in his famous fable The Hare and the Tortoise!

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“Perhaps a global slow recovery with growth albeit near zero growth over a period is what the world needs in order to steady itself and reduce the risk of a crashing downward adjustment. Lawyers like things to be predictable and boring. Maybe that is why I’m not too worried about the idea of modest growth rather than a meteoric rise in the economy of the UK in the short-term - not that a drop from almost 2 per cent to something closer to 1.5 per cent is really the difference between a meteor and a geostationary satellite.”

He also applauds recent efforts to remind the whole world that London remains open for business and joins Sadiq Khan and others in promoting the reality that – in or out of the EU – this is a great country with amazing opportunities for those who do business from here or who chose to invest here from outside #LondonIsOpen Rufus adds: “Maybe we are hunting for bad news rather than enjoying the very real opportunities we have. Perhaps more people, especially those of us who work in SMEs, should work on #LondonIsOpen, rather than bewailing the end of the world as we know it!”

Europe an recovery of debt after Brexit When debts from European countries need to be enforced, the process has involved obtaining a European Order for Payment in the debtor’s domestic Court, which can then be enforced in other European Courts. Historically, this has been a relatively simple solution to recovering this debit however, what happens when we Brexit?

In reference to the issue of enforcing European debt when the UK leaves the EU, we can look at this in two ways, one being how Euro businesses recover debt in the UK and the second, how UK companies recover debt in the EU zone.

In light of these questions, we could look to offer up an article containing the following: Technical background on the current position • The implications of ‘Brexit’ and the fact that the UK will likely “fall out of” the regulation that previously relied on in order to enforce client debt in the UK • Using examples of situation in other countries which are in Europe but not in the EU, as a way of example of possible processes to come (Denmark, for example)

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Long -term Brexit Impact on US middle market private equity On June 23, 2016, British voters surprised much of the world by voting in favor of “Brexit” in a 52% to 48% vote. By now, most people that watch or read the news are familiar with the term Brexit, but for any uninitiated readers, Brexit is the withdrawal of the United Kingdom (“UK”) from the European Union (“EU”). The Brexit vote on June 23 began a period of uncertainty that has shaken, to some extent, nearly every business sector in the world. The Brexit vote did not actually cause the UK’s withdrawal from the EU, rather, the UK is required to give formal notice of its withdrawal under Article 50 of the Treaty on European Union. Under Article 50, the UK must give two years notice of its intent to withdraw, but this notice has not been given and the UK government has not yet set a definitive timeline in which it will give such notice. A major source of consternation is the fact that Article 50 has never been tested before and no one has any visibility as to how smoothly this process will go (or not go).

But how does this affect the average US-based middle market private equity fund? Many articles have been written about the Brexit impact on UK-based business and multinational businesses with significant presence in the UK and EU in general, but Brexit has the potential to be felt by many of our own middle market private equity firms in the coming years. Brexit has the potential to directly affect two areas that are of vital importance to most private equity funds – interest rates and trade in the EU.

Interest Rates In the leveraged private equity world, any threat to interest rate levels is a concern. Many had deep concerns about the impact of a negative Brexit vote on global interest rates. PreBrexit vote reports warned of significant potential harm to the UK economy, and the world economy, if Brexit became a reality. A number of institutions, including, for example, the International Monetary Fund, cited the potential for a decline in the UK economy as a result of delayed investment, a lack of hiring, and a litany of other reasons. This instability raised fears that we would see a drastic increase in global interest rates.

Take for example the London InterBank Offered Rate to Fed Funds (“LIBOR-FF”) spread, a key measure of credit risk within the banking sector that tracks the movement of LIBOR against the US federal funds rate. During times of economic peace, the LIBOR-FF spread typical stays within a narrow range close to zero basis points. The spread will rise as banking institutions perceive more risk with other financial institutions and charge more for interbank borrowings. The LIBOR-FF spread is a direct measure of interest rate risks for many private equity groups. In a post-financial crisis world, the commonly available choice in floating rates between a US prime-based rate and a LIBOR-based rate has, in many cases, been replaced by the LIBOR-only based rate. Thus, many private equity portfolio companies no longer have the primebased option to fall back on.

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based option to fall back on.

During the financial crisis of 2007, the spread reached levels north of 350 basis points. In contrast, despite turmoil in worldwide stock markets in the days that followed the Brexit vote, the LIBOR-FF held fairly stable around a range of 25 to 35 basis points. Unlike in 2007, the world’s banks had plenty of time to prepare for the Brexit vote, and several central banks pledged to maintain liquidity in the markets to quell Brexit fears in the days leading up to the vote. The immediate risk of large movements in the interest rate market appears to be low, but the longer-term risk is still open. With the requirement of a two-year notice for the UK to leave the EU, coupled with the fact that no such notice has been given or has a definitive timeline to be given, the full impact of Brexit will not be known for some time. During that time the interest rate market will likely depend on the willingness of the world’s major central banks to remain committed to stepping in to provide stability. So far, the indications are that central banks will stay ready to provide support when and if needed.

Trade and the EU " Passport " A potentially greater impact of Brexit on US-based middle market private equity groups is the access their portfolio companies will have, or not have, to EU countries. As a member of the EU, the UK has the equivalent of a “passport” to trade with other EU member countries in a streamlined fashion. This “passport” is a combination of harmonized trade policies that streamline the ability to transport goods and people throughout the EU without the imposition of tariffs and many other restrictions. Due to the benefit of this “passport,” an overseas business that establishes itself in one of the EU member nations essentially establishes itself in the entire EU. The UK, and London in particular, is one of the primary springboards into the EU utilized by US middle-market companies due to the lack of a language barrier, a huge talent pool, and easy access to the rest of Europe.

Establishing a presence in the UK is an obvious choice for any middle-market US company looking to expand into Europe.

Without this “passport,” US-based companies looking to expand into Europe may have to establish themselves in other EU member nations, and, unless these companies desire to abandon doing business in the UK, they may also need a separate establishment in the UK, increasing the cost of an expansion into European markets.

During the two-year notice window required of the UK to leave the EU, it is expected that the UK will negotiate specific agreements with the EU to govern how an orderly exit will take place. It is possible that agreements will be reached that seek to replicate the current “passport” the UK currently has. In fact, certain non-EU countries, such as those in the European Economic Area (Iceland, Liechtenstein and Norway), enjoy a similar “passport” into the EU without being member nations. Certainly many hope that, should the UK formally separate from the EU, the UK will reach an agreement similar to the one with the European Economic Area (or that the UK will even join the European Economic Area), but the procedures under Article 50 of the Treaty on European Union are untested and there is no guaranty such an agreement will be reached. Further, with the UK government’s plan to not even begin discussing a Brexit plan until next year at the earliest,

it could be years before any such agreement is reached. This creates a dilemma to those US companies that are looking into establishing a presence in the EU now, as they could be forced in the future to repeat the process in the future by establishing in another current EU member nation.

Punchline For the time being, it appears that Brexit will not alone increase the cost of debt to private equity firms and their portfolio companies, but private equity firms looking to acquire domestic companies with an eye on international expansion had better take a second look at the forecast for European growth, or more specifically the cost of European growth. The next few years will likely be a period of uncertainty where such expansion may not be as efficient, or cheap, as it has been while the UK enjoyed its “passport” into the EU.

Britain votes to leave the European Union - what's next for personal investors?

The ballot papers have been counted and verified and it is now known that Britons have voted to leave the European Union. The Share Centre, comments on what this result could mean for personal investors: In the run up to the referendum we surveyed our customers on a number of occasions, most recently in mid-May when 56% indicated they would vote to leave*. It might be assumed that the majority of personal investors would therefore welcome this result as being in line with their wishes. However, our survey also highlighted that a substantial majority (66%) felt that a vote to leave would have a negative impact on the economy and on the market.

The market has been subject to significant volatility and uncertainty in recent times. The vote to leave will not help in this regard as there will now be a process of negotiation which the UK government must go through to agree the exit process and format of trade deals with the EU and other countries. That uncertainty will be exacerbated by the likely political fallout within the UK, which will most likely result in substantial changes in personnel within the UK Government.

The market will likely respond unfavourably to this potential increased short-term uncertainty. While the market may be expected to decline in the short term, a fall in the value of sterling relative to the Euro and/or Dollar will actually make UK exports more competitive and will boost the sterling equivalent of overseas earnings for many of the large corporates in the FTSE 100. As such, after an initial dip, the market may return to a focus on those underlying fundamentals which may be more favourable than the initial reaction might suggest.

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Personal investors should also note that while the market may be driven by sentiment in the short term, not all companies will be affected in the same way by the vote to leave. Even within the same sector different companies will be impacted in different ways. In time the market will differentiate between those companies and this may serve to demonstrate that any initial blanket market reaction will in fact have provided buying opportunities for discerning investors able to differentiate between the impacts on different companies.

Commenting on the referendum result, Richard Stone, Chief Executive of The Share Centre, said: “At a personal level a majority of investors may welcome the result as it meets with the wishes a majority indicated to us in our recent customer surveys. However, it is likely in the short term to result in increased market volatility amid uncertainty over what a vote to leave will mean for the UK. “That negative short-term outlook may soon be reversed for those companies which will benefit from their exports being more competitive or their overseas earnings being more valuable in Sterling terms. Investors will need to be surefooted in identifying those companies which may benefit from the outcome of the vote and look for opportunities where whole sectors have been written down without any meaningful differentiation between companies to reflect the variation in impact the vote will have. The market will return to valuations based on fundamentals in due course.

“It is vitally important for markets and for personal investors that any changes in Government take place swiftly and that those charged with negotiating our exit from the EU set out as clearly as possible how they plan to steer the course for the UK going forward. We would urge the Government not to undertake any knee-jerk reactions in terms of an emergency budget, and should such a budget be deemed necessary tax incentives which encourage investment should not be a target for savings. To do so would be short sighted as the UK economy now more than ever before will be reliant on the small businesses, many backed by personal investors, to drive economic growth and future employment.”

Exporting post - Brexit: Business as usual, but approach with caution The EU Referendum now seems but a distant memory for most, with the majority of businesses continuing with a business as usual approach until further news of the negotiations around Britain’s exit from the EU. However, September isn’t far away and on their return from summer recess, MPs may begin to tackle to beast that is Article 50.

It’s fair to say that it has been a tumultuous journey for UK businesses in recent months, and whilst much of the scaremongering has died down, companies based in the UK are somewhat in limbo. In the five weeks since the outcome, the value of the pound has depreciated more than 10% against the euro, and sources say it could drop as much as 30%.

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Although this drastic currency drop may have been welcomed with open arms by some UK exporters, having previously battled with the over-priced currency, businesses are by no means out of the woods yet. With the currency rollercoaster set to continue as negotiations begin to unfold from September onwards, now is the time to be planning ahead to ensure that profits are not hit by these uncertain times.

How to act in the meantime For many businesses that export to the EU, the question that has been on their lips is whether or not they should, or would, continue trading with those countries. For the time being, however, it is common sense that trade between the UK and EU has to continue, and it would be detrimental to both parties to try and undermine a long established relationship between neighbour countries.

Although there has been a lot of noise around higher tariffs for exports, this is an aspect that is not likely to change imminently. The Scotch Whisky Association, representing an industry that exports more than 90% of its production, has called for clarity on impending tariff changes, and has urged the UK government to push for favourable trade conditions after leaving the European Union. With such widespread industry support, it is likely that pragmatism will prevail, and trade between the EU and UK will continue with similar trade negotiations.

With this in mind, businesses should not be altering any relationships with their EU trading partners, as trade agreements will likely take years. Businesses could now begin looking to non-EU trading partners as one of the key aims of Brexit negotiators will be to look at improving trade conditions with other nations, such as Japan and China.

What to expect as Brexit negotiations start The fact that a weak pound is in some cases a blessing for exporters because it makes their products more competitive in foreign markets, shouldn’t lull exporters into a false sense of security. Currencies are a hard bet and nothing is certain.

European exporters who were confident that the euro was going to drop to parity against the dollar twelve months ago, when the potential “Grexit” was playing out, took a hard beating only one month afterwards, as the currency surged 8% in a matter of weeks, to hit $1.17.

As discussions play out, British exporters will remain in a favourable position if they implement a clear FX strategy to ensure that their profits are not dented by currency swings.

Planning ahead Currency fluctuations can have a direct impact on a business’ profit, and if one thing is certain, we can expect plenty of shifts and turns in the next few months, even years.

Risk management techniques must be put into place as a matter of urgency to ensure that companies are not caught out – the teams must keep a close eye on the live market rates to hedge against this FX risk. In addition the finance team should pool knowledge from the business in order to calculate the company’s exposure, margins, profitability of the business and risk tolerance to establish a coherent FX policy. By approaching this exercise in this way, the end policy

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much more likely, but given that the regulatory regime in the UK already matches that of the EU, the process of bringing forward the approval of an AIFMD third country passport should be relatively straightforward.

“If the UK’s regulatory landscape substantially changes, we can expect the European Securities and Markets Authority (ESMA) to take a tougher line on passporting, pushing the UK further down the queue. Any gap in passporting rights could create significant upheaval and high costs for rerouting and restructuring funds. It would also raise questions about pre-existing investors around ongoing marketing, and parallel vehicles may need to be established. A sensible compromise is necessary to avoid increased fragmentation of the industry and costs, which investors will ultimately end up bearing.

Will fund managers leave London?

“Although London’s power as a global financial centre may be called into question should the UK lose its broader passporting rights, Britain remains a large economy with a significant investor base. Despite this, its focus could shift from being an operations centre for the majority of European fund managers, to a base, which primarily supports UK investors, and fund structures.

Philippe Gelis, CEO and Co-Founder of Kantox should be empirical rather than emotional – a decision based on real numbers and excluding optimism.

It’s also best practice to plan for a ‘worst case scenario’, so in this case, a turbulent negotiation period and unfavourable tariff’s imposed, resulting in immediate currency implications.

The FX strategy must consider the amount of risk that the company is able to absorb without significantly denting profits. Of course, this will vary depending on the company’s profit margins and individual appetite for risk, but a strategy that is underpinned by these elements will ensure that enterprises are able to withstand the negotiation period, which will no doubt come with unexpected twists and turns.

Philippe Gelis, CEO and Co-Founder of Kantox

AIFMs must ensure investors don'T pay for Brexit passporting fall-out

“The impact on the rest of Europe is potentially disadvantageous. On one hand, a loss of the UK’s passporting rights could encourage mangers to move their European operations to other jurisdictions, which would benefit those locations. On the other hand, should a fund’s primary investor base be the UK, we could see those products re-domiciled to the UK and become unavailable to European investors.

“Any requirement for fund managers to move their operations away from the UK will very much depend on the wider outlook for its financial services sector. Should London retain its status as a jurisdiction of choice, any movements are likely to be small enough to allow continued marketing in Europe, rather than a large scale overhaul of entire fund management operations.”

Cross - border order volumes at record high following Brexit The volume of online retail orders being sent cross-border was at a record high for July, according to the latest data from the IMRG MetaPack UK Delivery Index.

The loss of AIFMD passporting rights that enable UK-based alternative fund managers to market products across the EU has been one of the industry’s main concerns since the Brexit vote. Tim Thornton, COO, Fund Services, MUFG Investor Services, explores potential implications.

For the second month running, the proportion of orders leaving the UK was recorded at almost 27% – the highest percentage for June and July in the five year history of the Index. Usually around this time of year we would expect to see cross-border volumes account for around 23% of the total.

“Whether the UK retains its existing AIFMD rights or is required to apply through the equivalency process will only become clear as negotiations progress. The latter scenario is

July represents the first full month of data we have had since the EU referendum result on 23 June and since then the value of sterling has fallen sharply against the euro and

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The 2016 buy-outs and buy-ins report from Barnett Waddingham, the UK’s leading independent provider of actuarial, administration and consultancy services examines the impact of Brexit, Solvency II and the changing players in the bulk annuity market.

The report, which highlights the important considerations for employers and trustees in order to transact successfully, finds that: dollar, making products on UK retail sites attractive to foreign shoppers in Europe and the US. Last month we recorded a sharp drop in cross-border average order values, as shoppers took advantage of the relative strength of their currencies. This month we have seen a recovery, although it is still below where we would expect it to be.

Andrew Starkey, head of e-logistics, IMRG, said: “While it’s hardly surprising that cross-border volumes have risen since the Brexit vote, the question is whether this upturn in orders will be temporary or sustained over a longer period. As the July average order value has risen on June, we might surmise that shoppers initially used the opportunity to snap up a bargain or two, but are now realising that the deals are very attractive and are loading up their baskets with more goods each visit. While this upturn is good news in a way, clearly there will be pressure on margins due to all products being discounted for cross-border shoppers, in effect.”

Kees de Vos, chief product officer at MetaPack, said: “July is usually a month in which retailers enjoy a mini-peak in sales, but the impact of Brexit on shopper confidence is now being felt. The increase in order values from EU consumers snapping up bargains thanks to the drop in Sterling is welcome, however. We expect that over the next few months we’ll see a return to much greater volume growth, ensuring that forecasts for the year are met.”

Bulk annuity annual report 2016: The impact of Brexit and Solvency II on the bulk annuity market • Opportunities still exist for the “right” schemes in the medically underwritten bulk annuity market • Weakening of sterling following Brexit may help to improve transaction affordability • Being prepared and actively managing the de-risking journey is key to achieving the best possible transaction

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• 2015 was another strong year for the bulk annuity market particularly at the end of the year as the implementation of Solvency II approached. The first half of 2016 has been quieter with the retail annuity books of some insurers providing competition for pension schemes.

• The medical underwriting market can continue to offer attractive pricing opportunities for the right schemes, with the total volume of medically underwritten business insurers now exceeding £2bn.

• “Brexit” has highlighted the need for schemes to be actively monitoring their position, as several opportunities came to light around the referendum date. For overseas parents movements in the exchange rate can also increase the attractiveness of de-risking.

• Ultimately being prepared and actively managing the de-risking journey is key to achieving the best possible transaction. This includes considering data, liability management exercises and getting engagement between the sponsor and the trustees.

Gavin Markham, partner and head of bulk annuity consulting at Barnett Waddingham, commented: “For this year’s report we have sought views from the insurers themselves on some key issues including factors affecting growth in the market and their assessment of a transaction coming to market.

Their views provide an interesting insight into how the insurers are placed.

“Whilst the financial conditions may be challenging, there are still opportunities for schemes. Being prepared and understanding what those opportunities are for the schemes own circumstances should be high up the agenda of corporates and trustees.

“The development of actuarial tools has really helped schemes understand the risks they are facing, such as longevity. Modelling can be done on the different elements of longevity risk and for different groups of members. This type of analysis also allows the long-term longevity risk to be assessed alongside the financial risks to provide the full picture.

“Solvency II is still in its relative infancy, with insurers still trying to make the most efficient use of their assets. This can result in further opportunities for particular characteristics of schemes, meaning it is important to understand how the insurers operate and when these opportunities might arise.”

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Brexit won't save practices from the new EU data protection rules Practices must continue to prepare for the introduction of the new EU General Data Protection Regulations (GDPR) that will come into force from 25 May 2018, as the regulations will still apply when we Brexit and will impact many M&A transactions, says David Alexander Executive Chairman of My Wealth Cloud, a secure communication and collaboration tool for M&A advisers.

The long-awaited EU General Data Protection Regulation (“GDPR”) entered into force on 24 May 2016 and, following a two year transition period, will apply from 25 May 2018. Considered to be one of the most ground-breaking pieces of EU legislation in the digital era, the GDPR will make businesses more accountable for data privacy compliance and offers citizens extra rights and more control over their personal data.

Following Brexit, once the UK gives notice to leave the EU the expiry of two years from giving notice is expected to be late summer 2018, which means the GDPR will already be in force before the UK will have been able to leave the EU. The GDPR is going to affect all UK businesses offering any type of service to the EU market, even when we Brexit.

The new rules will have significant impacts for all organisations, especially in the M&A context, a non-EU entity that targets or monitors EU individuals will be subject to the GDPR. Here are the obligations you need to be aware of: Territorial Scope: Any organisation, whether established in the EU or not, processing the personal data of data subjects located in the EU, and data controllers and processors established in the EU, will be subject to the GDPR. Elevated threshold for consent: In addition to the requirement for consent to be specific, informed and freely given, under the GDPR an unmistakable form of statement or clear affirmative action to be obtained from the individual. This will make it more

difficult for consent to be relied on as a legal basis for data collection.

Elevated threshold for consent: In addition to the requirement for consent to be specific, informed and freely given, under the GDPR an unmistakable form of statement or clear affirmative action to be obtained from the individual. This will make it more difficult for consent to be relied on as a legal basis for data collection.

Breach of Security Reporting: Security Breaches must be notified to the Authorities within 72 hours, unless the breach is not going to result in a risk to freedom rights of individuals. Where there is a high risk, affected data subjects must also be notified without delay.

Records of Processing Activities: There is an obligation to allow individuals to see their own data, to release a copy of any data you hold about them in a readable format so they transfer any of their data from one service provider to another.

Enhanced rights of the individual: There is an obligation to perform data erasure in response to individuals’ exercise of their “right to be forgotten” – that is, the right to withdraw their consent to your storing or using their personal data and to request their data be deleted.

Privacy by Design: Privacy by design theme permeates the GDPR, with the objective being for businesses to design services and products with the privacy rights of any individuals at the forefront. Businesses will be required to administer privacy from the outset of any endeavour impacting on personal information.

Required Data Protection Officer (DPO): A DPO must be appointed by all public bodies and by businesses where core activities involve a regular and systematic monitoring of data subjects on a large scale or if the handling of a large scale of special categories of data.

Purchasers must carefully consider post-acquisition integration and any transfer, or new uses of data. Privacy and compliance considerations should be central to the integration process to ensure buyers can use the data as envisaged post-sale.

Encouraging a target to use a selfadministered online secure vault designed for sharing confidential information with clients whilst adhering to all compliance requirements should be enforced.

What do I need to do?

• Consider this as an opportunity to revise your existing privacy policies and procedures in relation to data storage, transmission and processing.

• Start to consider which parts of your operations are established in the UK and may be affected by proposed changes.

• Identify personal data flows from the EU to the UK as new adequate safeguard measures will be required for them if the UK leaves the EU and so falls outside the European Economic Area.

• Identify UK-based 3rd party online portals that will enable you to communicate and store data securely whilst also strictly adhering to the GDPR requirements and remaining compliant.

• Keep this area and UK developments under regular review and keep your plans up to date accordingly.

The GDPR changes the rules for EU data protection compliance and will be an essential consideration in any M&A transaction that falls under the new regime.

David Alexander, Founder, My Wealth Cloud

Fines & Enforcement: The GDPR imposes mandatory data breach notifications and much stronger sanctions for non-compliance. Fines of up to 4% of annual worldwide turnover or 20 million, whichever is higher, can be imposed.

Before you start negotiating with the CFO or the CEO for a budget to resource a GDPR-compliance

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The Effect of Brexit

The Current UK Cyber Security Framework

on Cyber Security: A

The UK currently has a patchwork body of legislation and guidance to deal with cyber risk:

national response to an

• The Communications Act 2003 places obligations on public electronic communications network and service (PECN/ PECS) providers to ensuresecurity and notify breaches and reductions in availability to Ofcom, the regulatory body that enforces the act.

international threat?

As the risk of cyber attacks respects no borders, a cohesive and harmonised EU­level approach to cyber security is appropriate. It is therefore understandable that UK organisations have questions following the recent referendum result, and the UK’s imminent split from the EU. How your organisation should react to Brexit from a cyber security perspective is still uncertain. However, the UK currently remains part of the EU and will continue to do so until a withdrawal agreement has entered into force, or, by default, at the end of the two­year negotiation period following the invocation of Article 50 of the Lisbon Treaty.

As it stands, EU regulations and directives, and the statutory instruments transposing those directives into UK law, still have effect. But what will the future of cyber security in the UK look like?

The Current EU Cyber Security Framework In 2013 the European Commission proposed the Network and Information Security Directive (NISD), with the objective of harmonising the European approach to combating cyber risk.

In May 2016 the European Council formally adopted the new rules, which aim to: • Improve cooperation between member states on the issue of cyber security.

• Improve and standardise cyber security capabilities in member states.

• Require each EU country to designate one or more national authorities.

• Ensure that operators of essential services in critical sectors (e.g., banking, health care, energy, and transport), and key digital service providers (e.g., online marketplaces, search engines and cloud services), take appropriate security measures and report cyber security incidents to the national authorities.

• Establish a EU­wide strategy for dealing with cyber threats.

The NISD will build on previous directives such as directives 2002/58/EC and 2002/21/EC, which placed obligations on organisations in the electronic communications sector to implement appropriate technical and organisational measures to ensure the security of personal data and protect the integrity of their systems. The NISD intends to harmonise the varied implementation of these directives by requiring each member state to implement a national network and information security strategy, a minimum threshold for the harmonisation of security, and mandatory incident notification. Cooperation between both public and private entities is an essential component of the NISD, allowing for the circulation of early warnings on risks and incidents to ensure a coordinated response.

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The Privacy and Electronic Communications (EC Directive) Regulations 2003 as amended in 2011 place obligations on PECS providers to take appropriate technical and organisational measures to safeguard the security of their services. The Information Commissioner’s Office (ICO) must be notified of any personal data breach “without undue delay” or at least within 24 hours after the detection of the breach.

• The Data Protection Act 1998 imposes various obligations on data controllers including a requirement to take appropriate technical and organisational measures against unauthorised or unlawful processing and against accidental loss or destruction of or damage to personal data.

• The Computer Misuse Act 1990 as amended by the Serious Crime Act 2015 criminalises cyber offences such as unauthorised access to or interference with a computer and the impairing of a computer such as to cause serious damage.

Both Ofcom and the ICO have provided extensive guidance on best practice and how to comply with the legal requirements. The majority of cyber risks can be mitigated through the implementation of fairly basic policies and procedures, such as updating outdated software and systems. Organisations can protect themselves even further by implementing more technical compliance measures including the use of encryption, firewalls, and antivirus software.

As reported in May, the Department for Culture, Media and Sport revealed cyber risk as one of the biggest threats to UK businesses and announced a raft of measures to tackle the issue on a national level. The House of Commons Culture, Media and Sport Committee more recently released a report outlining several cyber security recommendations. These include the implementation of custodial sentences for certain cyber security offences, the identification and sanctioning of those guilty of failing to ensure appropriate levels of cyber security within organisations, the implementation of breach response plans, and a new ICO ‘sliding scale’ of fines based on failures to respond to previously exploited security vulnerabilities. The National Crime Agency and the Strategic Cyber Industry Group recently released their 2016 cyber crime assessment, highlighting the immediate threat of cyber crime for UK businesses, outlining proposals for addressing this threat, and calling for greater cooperation between businesses, government, law enforcement and other bodies.

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the clear benefits that a coordinated European information sharing effort would provide. Further, the setting of minimum cyber security standards and planning requirements is of clear mutual benefit. It may therefore be wise for organisations operating in the UK to proceed under the expectation of a UK implementation of the NISD.

Authors: Cynthia O’Donoghue, Kate Brimsted, Philip Thomas

The above table illustrates that the UK already matches the EU in its capacity to provide most of the cyber security functions crucial to addressing cyber risk. The importance of an EU­wide coordinated effort to combat cyber risk will not be forgotten during withdrawal negotiations and in deciding whether and to what extent the UK should implement the NISD. Although no stand­alone cyber security act has been implemented in the UK, it does have the issue very firmly on its agenda and boasts a varied offering of legislative protections, regulatory guidance, and information sharing and preparedness schemes.

Cyber Security and out sourcing The effect of Brexit on cyber security outsourcing is already evident. The stark drop in the value of the pound directly increases the cost to UK businesses of outsourcing cyber security functions to overseas providers. Compliance with UK and EU (where businesses are trading in the EU) cyber security legislation will therefore represent a higher financial and administrative cost as organisations analyse alternative options, such as bringing online security functions inhouse. Unless the pound significantly recovers, this negative consequence is unavoidable and organisations should simply be aware of it and factor these increased costs into their budgets.

The Future of UK Cyber Security As the UK remains part of the EU until negotiations close and a withdrawal agreement has been signed (or the two year negotiation period has elapsed), it is technically under an obligation to transpose the NISD into its national law.

The NISD is likely to enter into force this autumn, following which member states will have a 21-month period to implement its provisions. The UK, in the absence of any finalised withdrawal agreement, will therefore be required to adopt the NISD. This should not be a point of concern as most commentary on the NISD has been positive: it outlines a practical and reasonable approach to countering cyber risk on a European scale through planning requirements, the exchange of information, cooperation and common security requirements.

What if the UK decided against the implementation of the NISD? The UK bodies which currently address the cyber threat and ensure compliance with cyber security legislation already cover many of the functions that EU cyber security bodies such as ENISA provide, including those that will be set up under the NISD. However, the NIS Cooperation Group (established by the NISD) will provide a unique and mutually beneficial tool in the prevention of cyber crime. As cyber risk is such an international issue, it would be unlikely that the UK would elect to tackle cyber risk alone, in the face of

"Brexit insurance" to calm fears for UK's e-money firms New entrants and those expanding in e-money and payments sectors will still choose to locate in the UK despite last month’s Brexit vote, according to one of the UK and Europe’s leading regulatory specialists.

Neopay, which has helped more international payments firms set up in Europe than any other specialist consultancy, is helping these businesses with ‘Brexit Insurance’ - a scheme designed to remove the uncertainty for payments and e-money firms establishing themselves in Europe.

The EU remains the largest single market in the world, and no other single market has a better environment for firms entering the fast growing e-money sector. However, uncertainty over future licensing arrangements, and in particular the continued ability of firms to operate across the whole EU and UK under one license, is causing concerns.

Craig James, CEO at Neopay, says: “We certainly understand the concerns being expressed in the payments and e-money space regarding the result of the recent EU referendum.

The UK’s decision to leave the EU has obviously caused a sense of instability. We’ve considered how we can remove the uncertainty for businesses looking to set up within the EU market and that is why we have launched our ‘Brexit Insurance’.”

Craig goes further to state that, after the initial shock of the Brexit vote subsides, to all intents and purposes it will be business as usual for the at least the next few years.

“Following that, it is likely that a trade agreement will be reached which will enable business as usual to continue across the EU and UK under one license. If an agreement can’t be reached, however, there will still need to be transitioning arrangements for firms who currently operate across the EU and UK to ensure that existing consumers of ‘passported’ financial service products are not put at risk.

“Although the UK has always been the favourite location for payments and e-money firms looking to enter the EU, we have already seen an increase in the number of firms asking about licensing in other EU states. We want to reassure firms that, wherever they decide to base themselves and whatever the result of this political turmoil, the requirements to gain a license will remain the same across the UK and the EU.

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‘If the worst happens, and firms do require additional approvals, this process will be straightforward for firms within the market. Our ‘Brexit Insurance’ will also ensure that the impact to firms of this worst case scenario will be minimal.”

“No payments company wants to ignore Europe, the biggest single market in the world, or the UK as one of the world’s largest economies. We hope that the both the European and UK governments will act quickly to clarify what the future will hold for the ‘passporting’ of financial services, but in the meantime we will do everything we can to support our clients by removing the uncertainty faced by firms entering the European market.”

Neopay, Leading e-money and payment regulatory specialist

A flexible supply chain spells success It is a well-acknowledged fact that agility is key to business success. So why should your supply chain be any different?

The period of uncertainty and flux resulting from the outcome of the recent UK referendum means that businesses must be even more flexible and prepared for change. Despite this, supply chains often remain static and outdated, having been built with complicated and intricate processes over numerous years.

There are a number of ways to make your supply chain more dexterous; by being open to new supplier options, having financial flexibility, and being responsive to any slight tremors in commercial, financial and regulatory frameworks.

Explore new horizons In many respects Brexit should be the incentive to explore opportunities to gain some competitive advantage. The British departure from the European Union could signal the beginning of new relationships between the UK and markets further afield. These relationships could also prove far more successful in the long run as a number of emerging markets are expected to grow more strongly and with Brexit are starting to look more appealing than ever. In order to embark on these new and exciting opportunities, however, businesses need financial agility.

Flex your finances Businesses have been bombarded with the anxiety of potential changes to VAT regimes, increased levies for trading with the European Union, and major fluctuations in exchange rates and stock prices. There are certainly going to be rapid instabilities in the market, as all these factors change from day to day. Having financial clout means you can adapt your business model to them, as and when it’s necessary. For example, in the past few months, AIG and PrimeRevenue have seen increasing interest in their flagship Supply Chain

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Have a rapid response At the heart of these measures to enhance financial control is the need to move quickly. In order to do so, businesses must have a strategic plan, along with fundamental knowledge to support it, to respond immediately to the various changes that are inevitable in this evolving environment. This planning and management of a global supply chain affects, not just certain departments, but the whole organisation, from procurement and operations to finance and sales. Therefore, it is important to ensure there is transparency and consistency across the entire business. Similarly, knowledge of the local markets on supply chain is crucial to ensure you understand what is happening with your suppliers within a number of arenas such as tax, employment legislation or even health and safety laws. Armed with a strategy and the knowledge to back it, professionals can act directly, and instantaneously, to any problems that arise.

Take action now So in light of the political, economic and regulatory changes that seem likely following 23rd June, have you examined your supply chain? Are you fully prepared, and agile enough to weather the storms that could well lie ahead? If not, it is essential that you take the time to analyse your supply chain in order to better explore further markets, enhance your working capital, and prepare yourself to make decisions without delay.

Neil Ross, Global Head of Trade Credit, AIG

UK retail salES figures defy expectations as consumers indicate no change in behaviour post Brexit Ian Forrest, investment research analyst at The Share Centre, comments on what this week’s economic data may mean for investors.

“Some good news for Britain’s retailers today as retail sales figures for July, the first hard data announced in this area since the EU referendum, showed they were better than expected. Sales rose 1.4% compared to June and were up 5.9% on July last year. The main contribution to this growth was once again from non-food stores.

“This was the latest in a series of important economic releases this week in the UK. Jobs data yesterday for the April to June period also showed no impact from the uncertainty in the run up to the referendum. The unemployment rate remained at 4.9%, as expected, while the claimant count in July actually fell by 8,600, which was better than expected.

Average earnings grew by 2.4% including bonuses, which was in line with market forecasts.

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“On Tuesday the Office for National Statistics reported that inflation in the year to July ticked up slightly from 0.5% to 0.6%. That was higher than expected with the main contributors being motor fuels, alcoholic drinks and accommodation services. Food prices fell less than at the same time a year ago. With the fall in the pound following the referendum, economists are expecting to see further rises in inflation fuelled mainly by the increase in the cost of imports. There was some indication of that in other data this week as input prices for manufacturers rose 4.3% in the year to July.

“Overall, the data this week was better than many expected, or feared. It certainly shows that concerns about a big economic slowdown in the run-up to the referendum were overdone, and there are indications that consumers have not significantly changed their behaviour in the first weeks following the referendum. Of course, it is still too early to make firm judgements about the impact of Brexit and formal negotiations with the EU have not yet begun, but investors should appreciate that this data is encouraging.”

Professional hirinG stable post- Brexit “It is interesting that demand for contractors within financial services remains strong despite widespread volatility in the sector” • Permanent vacancies show 0.2% growth year-on-year • Contract vacancies dip by 2% • Contract vacancies within financial services jump 21% • Engineering vacancies fall by 9% • Average salaries dip by 0.8% Professional recruitment firms reported that vacancy numbers remained stable in the month following the EU Referendum with 0.2% year-on-year growth in July 2016 according to new survey data from the Association of Professional Staffing Companies (APSCo). This is in line with the latest data from the Office for National Statistics (ONS), which reported in August that the overall employment rate was 74.5% in the three months to June 2016 – with 23.22 million people working full-time, 374,000 more than a year earlier.

The latest data from APSCo reveals notable variations between the trade association’s core sector groups in terms of hiring activity. While permanent vacancies across both financial services and marketing, for example, have increased (6% and 16% respectively), IT and engineering have both recorded dips (7% and 9% respectively).

Contract vacancies within financial services jump 21% Following a steady increase in demand pre-Brexit, temporary and contract vacancies dipped across the professional staffing market in July, with opportunities softening by 2% year-onyear. The clear exception is the finance and accounting sector where vacancies increased by 21% in July. Most likely due to a reluctance to bring on board talent on a permanent basis

until there is greater clarity around what Britain’s relationship with Europe will look like post Article 50 – and how this will impact the operations of multi-national financial institutions moving forwards.

Engineering vacancies dip Permanent vacancies within the engineering sector dipped by 9% year-on-year in July. This is in line with recent reports from the CBI which found that the UK’s manufacturing output eased back in the three months to August with 34% of businesses reporting a rise in output and 23% reporting a fall. This represents a balance of +11%, which is down from +16% reported in July.

This fall in confidence may be in response to anticipation of a post-Brexit funding gap, with a large proportion of research and development spend in the sector currently coming from the EU. However, this dip in demand is juxtaposed with a simultaneous increase in average salaries with both manufacturing and engineering recording uplifts of 3.4% and 2.3% as ongoing skills gaps, created by a steep retirement cliff, continue to impact the supply of professional talent.

Average salaries dip APSCo’s figures also reveal that median salaries across all professional sectors dipped by 0.8% year-on-year. This figure is characterised by notable fluctuations in terms of sector, with financial services, for example, recording an uplift of 3.6%. Average salaries within the professional sectors fall short of the national increase in pay as reported by the ONS, which found that average earnings grew at an annual rate of 2.3% in the three months to June 2016.

Ann Swain, Chief Executive of APSCo comments: “Pre-Brexit, it was widely hypothesised that market confidence and the UK economy would spin into freefall if Britain was to leave the European Union. However, so far, these fears have proved unfounded. Data shows that both retail sales and the labour market performed strongly in July and August’s Purchasing Managers’ Index (PMI) reported that Eurozone activity was at its highest for seven months.”

“It is interesting that demand for contractors within financial services remains strong despite widespread volatility in the sector. Lloyds Banking Group, for example, said in July it would axe 3,000 jobs and close 200 branches to cushion against a more testing economic environment caused by Britain’s vote to quit the EU. Similarly, European banks including HSBC and Deutsche Bank have also gone on record to say they may have to move people or activities to France and Germany if rules around passporting rights change post Article 50. It seems that an increasingly flexible workforce is being utilised to keep the wheels in motion until there is greater certainty around what the UK’s future relationship with the EU will look like. Until then, the professional recruitment sector will continue to provide talent to firms’ immediate and short-term needs.”

Adam Pode, Director of Research for Staffing Industry Analysts, which compiles the report for APSCo, comments: “The drop in the demand in the engineering sector comes as no surprise. The oil industry, which makes up an important part of the sector, has seen revenues tumbled 96% from 2014-15 to just £60m in 2015-16, according to Government figures. Last year the number of jobs supported by the UK’s oil and gas industry fell by an estimated 84,000 and are forecast to fall by a further 40,000 this year. Separately concerns about commercial construction are also having a negative impact.”

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Brex-odus: Workers frantically look abroad for jobs post-Brexit • Google searches for ‘work in the EU’ up 243% in the UK • Dream escapee destinations are Iceland, Norway and Switzerland • Most popular potential EU getaways include France, Italy and Spain While the UK may have voted to leave the European Union, this hasn’t stopped UK workers wanting to remain working in the EU - in fact quite the opposite. Analysis from office-search site OfficeGenie.co.uk discovered that, in the weeks following the historic June 23 vote, Google searches for ‘work in the EU’ were up 243% year-on-year.

In light of this, Office Genie has created a guide for workers looking to head abroad.

While there was increased interest in working in many EU countries, the ones leading the way were all non-EU member states: Searches for ‘work in Iceland’ (up 132%), ‘work in Norway’ (122%) and ‘work in Switzerland’ (108%) saw the biggest increases.

Escapee hotspots Canada and New Zealand were also popular with increases of 62% and 46% respectively.

Singapore also saw searches up 39%.

However interest in working EU countries is also up post-Brexit: France led the way with searches going up 62%, followed by Italy (30%) and Spain (30%). European-economicpowerhouse Germany rounded off the top 10 destinations for escapee workers; searches for the phrase ‘work in Germany’ were up 17%.

Peter Ames, Head of Strategy at OfficeGenie.co.uk, said “There was much fear of a ‘brain drain’ with serious increases in the number of people researching how they can continue to work in the EU, or elsewhere abroad.

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“Most interestingly, all the most popular countries are non-EU members.

So it’s not all good news for fans of the Union; people might be concerned about life working in other EU countries now that Britain is leaving.

“And of course the greatest irony in all this is that a leave vote, fueled by campaigning around immigration, is causing many workers in this country to look abroad themselves.”

Recruiter predicts boom in six-figure-salary Brexit Jobs National recruitment specialist, Search Consultancy predicted a boom in heavy hitting ‘chief Brexit officer’ roles as big business prepares for the aftermath of the referendum.

The expert commentary comes as PM Theresa May appointed David Davis to the role of Cabinet Secretary for Brexit and top-four consultancy firm KPMG assigned a senior partner to role of Head of Brexit.

Search director Phillip Piper, Head of Leadership Practice, says this is just the beginning of a growing trend that will sweep across all industries. He believes the landmark vote to leave the European Union will see the creation of a raft of new six figure specialist jobs to manage the switch.

He said: “Theresa May has already created a position within her cabinet to deal specifically with Brexit and now is not the time for big business to dither either. Those who act immediately and take action to deal with the fall-out from Brexit will be the ones that stay ahead of their competitors.

“The weeks before the result were very challenging for the recruitment sector and big business as a whole.

There was a drastic difference in the number of companies hiring before and after the vote – many simply didn’t want to hire until they knew the state of play. This was evidenced by the fact the week following the referendum was Search’s most successful week this year.

Phillip Piper, Director, Search Consultancy “Knowing the outcome has given organisations a better platform for planning, and in turn has created demand for a brand new type of specialist role. This will be especially important for those with vested interests in mainland Europe, whether as a main market for business or with EU offices and headquarters – they will need to hire staff to deal specifically with the aftermath and logistics of managing the transitional period following the Brexit vote.

“This needs to be carried out by highly capable operatives with the experience to manage a programme of work to move operations – I believe many senior teams will be incomplete without the inclusion of a ‘chief Brexit officer’ to fulfil that function. Theresa May has already created a role within her cabinet and big business will undoubtedly follow.

“Candidates stepping into this role could possibly come from a HR or financial services background but anyone undertaking such a position also needs to have the gravitas, commerciality and strong negotiating skills to own the process.

“KPMG has appointed one of its most senior partners into this role, while Mr Davis is someone who is seen as a strong natural leader and negotiator – in both cases they have turned to those who will deliver.

“Nobody is sure what will happen when the government invokes Article 50 but one thing is for sure – large businesses will not be entrusting this role to the unknown. The landscape has changed and will continue to change at pace over the next six to twelve months so the business world must be agile in its approach and methodology.”

Phillip Piper, Director, Search Consultancy

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Lending Works' investors show faith in P2P lending in wake of Brexit vote Internal poll shows overwhelming majority set to maintain or increase P2P investments • Rapidly growing peer-to-peer lending platform surveyed its 1,600 active lenders two weeks after EU referendum vote • Poll shows 62 per cent plan to maintain current investment levels in P2P in the short-term, while one in five plan to increase them as a direct result of Brexit • Just seven per cent plan to reduce their P2P investments, while 12 per cent are unsure • Further customer feedback shows confidence in sector’s ability to deal with a downturn, and strong appetite for the Innovative Finance ISA Lending Works, the first peer-to-peer lender to have insurance against borrower default risks such as accident or loss of employment, revealed the results of a poll of its investors’ attitudes towards peer-to-peer (P2P) lending following the surprising EU referendum vote on 23 June. The research shows strong support for P2P, with the majority of respondents set to maintain or increase their P2P investments.

Around 1,600 active lenders were asked how the Brexit vote and subsequent economic volatility would affect their levels of investment in P2P lending as a relative share of their investment portfolios. Just over 62 per cent confirmed that they would be leaving it unchanged in the short-term, while 19 per cent said they would be looking to increase their portfolio allocation to P2P. Only seven per cent said it was likely that their P2P investments would decrease, while the remaining 12 per cent said they were undecided.

The results represent a firm vote of confidence in the sector as a whole, and its ability to offer sanctuary and preferential rates to investors at a time of widespread economic uncertainty among many other asset classes.

Nick Harding, founding CEO of Lending Works, commented: “We’re delighted to see such a significant and overwhelmingly positive response to our poll, which is indicative of the confidence our customers have in peer-to-peer lending, despite the volatility in the various investment markets at present.

“It was always our position that we were in favour of Britain remaining in the European Union. But, as a company, and indeed as part of the wider P2P industry, we’ve also firmly held the belief that our immediate exposure to the ramifications of Brexit would be minimal and indirect. As a result, we’re confident that we’re well placed to offer stability to investors at a time of great uncertainty, and it’s wonderful to see this viewpoint echoed in this response from our active customers.”

Focus on partnerships and growth Lending Works also conducted more in-depth research with 30 of its most engaged lenders to further understand the thought processes of a typical P2P investor following the UK’s vote to leave the EU. The group was asked four qualitative-style questions, which looked at attitudes towards the company, P2P lending in general, and other asset classes in the context of Brexit.

Responses regarding fears in terms of other investments were mixed, but overall the group held a comfortable and optimistic outlook on the merits of P2P lending. While the risk of increased defaults in the event of a downturn was acknowledged, most participants were at ease with the levels of protection in place to deal with such a threat. A greater concern among participants was the potential impact on interest rates within the sector, while many also conveyed that the arrival of the Innovative Finance ISA (IFISA) was the issue most prominent in their minds.

Harding added: “Our ongoing mission is to better understand the rationale behind the decisions our customers make. After all, our lender base is made up of many successful investors with plenty of expertise to offer. We were once again struck by the optimistic attitude of our lenders, with regard to both the short and long-term prospects of P2P lending.

“Their concerns about rates offered through a platform such as ours being suppressed by external forces are duly noted. Yet while there can be no guarantees, we are immensely confident that returns will remain equally, if not more, competitive in relation to other asset classes in terms of risk and reward for the foreseeable future – regardless of what happens to rates in the wider economy.

“We also share our investors’ sense of anticipation regarding the launch of the new IFISA – something we’re expecting to happen very soon, and which will bring great benefits for many years to come.”

Record lending for Ultimate Finance as it pledges post Brexit support for SMEs Ultimate Finance Group, a leading independent provider of finance to UK business, announced that its total loan book to the UK’s SME sector has exceeded £100 million, with significant further funds available to businesses looking for support during this time of post-Brexit economic uncertainty.

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Ultimate Finance’s loan book has increased by a third in the last 12 months, a period of record growth for the business. At a time when the vote for Britain to leave the EU is causing unease across the business community, Ultimate Finance’s commitment to support UK SMEs is stronger than ever as it begins ambitious expansion plans.

“The vote to leave the EU has caused concern for a number of our clients and for the wider business community,” explained Ron Robson, chief executive officer of Ultimate Finance. “We remain fully committed to supporting UK SMEs, and with the strong financial backing of our parent organisation, Tavistock Group, we have significant resources available to us, a strong appetite to lend and a tremendous team of people to provide the outstanding service our clients deserve.”

“In uncertain times it is vital that businesses have stable and reliable funding partners that they can rely on and who will not, as the cliché has it, “remove the umbrella when it starts to rain”. In Ultimate Finance, our clients have that strong, reliable and knowledgeable business partner who will support them through whatever challenges lie ahead.”

“As part of Tavistock Group we have access to significant financial resources and are not dependant on financial markets or banks for our funding. As a privately owned business ourselves, we understand the realities and pressures facing our clients and stand alongside them.”

According to Robson, the £100 million landmark is just the beginning for Ultimate Finance: “We have ambitious growth plans that will see us strengthen our position across the traditional areas of Asset, Invoice and Trade Finance whilst also bringing an exciting and innovative pipeline of new products to market to address the changing needs of UK businesses. We will continue to extend our geographical reach, providing a locally based service, backed up by the strength and commitment of a national business.”

Ultimate Finance already offers a wide range of lending-based products that allows it to offer a tailored solution for virtually any business.

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“At heart and in action, we are very like the clients we serve,” concluded Robson. “We are a lean, flexible and helpful team that specialises in giving small and medium sized businesses the support they need to respond swiftly to changing situations. With ample funds to lend, a passion to see our clients succeed and experienced staff that have the freedom to use their own initiative, we are in a great position to ease post-Brexit business woes and surpass our own ambitious expansion plans.”

Lamont Pridmore on the ball with 4-4-2 Brexit Plan Lamont Pridmore, the award winning family run firm of chartered accountants and business advisers, has created a dedicated five-person Brexit team to help its clients prepare themselves for the challenges of the new business environment ahead.

The UK’s decision to leave the EU has created significant uncertainty in the markets and amongst businesses.

As part of its pro-active approach, Lamont Pridmore has brought together a team of specialists to help Cumbria’s businesses defend themselves against the additional costs and risks that may be involved with Brexit, whilst helping them to take advantage of any opportunities that may come their way.

Following the example of some of Europe’s most successful football teams, they have created a skilled defensive package against the impacts of Brexit, whilst creating the attacking forward nature of a talented team seeking opportunities and helping clients to achieve their goals.

The 4-4-2 Approach covers the four weeks following the vote, the following four months and the two years up to full Brexit, helping businesses to develop their plans over the short, medium and long-term as the UK and Europe finalise their trading arrangements.

Chris Lamont who will head up the Brexit Team at Lamont Pridmore said “Importers, exporters, customers and suppliers of all sizes will be affected in different ways and our team of experts will be on hand to help all of our clients with the challenges and opportunities that Brexit is likely to bring.”

Lamont Pridmore’s Chief Executive, Graham Lamont, added: “It will be vital for all businesses to understand their customer base in even more detail and work with their supply chains both to reduce the impact of the UK exit from Europe, but also to take advantage of the many opportunities that will become available to them with other countries around the world.

“While there is a lot of fear and anxiety surrounding Brexit there are still strong prospects for future prosperity, as long as businesses have the right team behind them.”

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apartment sector well placed to weather Brexit storms says Cycas Hospitality Looking beyond the immediate uncertainty brought about by the Brexit outcome Cycas Hospitality sees the extended stay property sector as one, which is extremely well positioned to survive and indeed thrive despite the outcome.

The fundamentals of the extended stay market in London and UK remain positive. The lack of abundant supply and the small percentage by which anticipated supply is expected to grow in the segment, offers both near and long term potential for those properties that specialize in the long stay sector of the overall lodging industry.

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Eduard Elias, Managing Partner of Cycas Hospitality, believes the Brexit situation is likely to have a positive impact on the extended stay property market in the UK. This is for various reasons: 1. The foundations of the market remain overwhelmingly positive - the economics of the extended stay property market are, of course, dependent upon the relationship between supply and demand. The supply of properties remains low, but demand seems set to remain at or near current levels for the foreseeable future - wider factors such as Brexit notwithstanding.

Research into demand for rooms in Greater London by Savills supports this. The market is still growing and, at 10.5% below the all-time peak, it has yet to hit the kind of business travel levels last seen in 2006. During 2015 the RevPAR or ‘Revenue Per Available Room’, figure grew by an annual 3.1% within the sector, clearly demonstrating a robust underlying industry structure.

The UK extended stay market is still nascent - In London, the market for extended stay hotels or serviced apartments represents something under 2% of the total room stock, whereas in the US this figure is approximately 8%. All trends show that demand for serviced apartments and extended-stay hotels of all types, will continue to grow. The market is showing a growth pattern, which mirrors what, happened in the USA two decades ago.

2. The fall of the pound against currencies from around the world may work as an advantage by making the UK a more attractive and affordable leisure destination for travellers from the likes of Europe, Asia and the US. This view is supported by Oxford Economics, which predicts, “Although the longer term impact on overall UK domestic economic activity will be negative, there is a potential positive impact for the hotel industry, due to increased affordability of the UK and London as a destination, derived from a weaker exchange rate.”

We have seen direct evidence of this.

Immediately after the Brexit vote when the Pound dropped in value – pre-paid bookings in our London hotels went through the roof!

3. The growth of Airbnb highlights the opportunities in the extended stay market -Airbnb shows a move away from the standard hotel offer within the leisure market, and towards larger units or self-contained apartments. This is an untapped market, which is ripe for exploitation. A trend from which we extended stay hotel operators benefit as well. Although their focus is strongly on corporate guests, we see more and more, that leisure guests find extended stay hotels attractive alternatives to traditional hotels, despite the limited marketing done towards this leisure market.

4. Historically, long stay hotels outperform the standard model during times of recession. Cycas witnessed this phenomenon first hand in 2008, when its Liverpool hotel opened and thrived at the very moment that the economic crisis hit and other parts of the hotel market began to suffer.

The Cycas Hospitality experience within the sector clearly demonstrates the following facts, all of which contribute to this underlying strength: Although transient demand often softens in a downturn, project work is harder to postpone, as the advanced planning is more complex and harder to ‘unwind’.

Companies seeking longer leases for project work prefer the flexibility and ease of booking a long stay apartment over making a commitment to a house or flat.

If the wider economic conditions lead to redundancies it is often safer for businesses to contract for work using temporary or contract staff. These temporary ‘employees’ are unlikely to buy or rent a permanent residence so are more likely to opt for ‘temporary’ accommodation.

The extended stay hotel sector in the US, which suffered a drop in room revenues in 2009, rallied soon after in 2010 and has experienced steady yearly growth ever since, growing to circa $10 billion market.

Going back further in time; Hotel Online reported in 2002, “Extendedstay has held up relatively well in the recession because it caters to people working temporary jobs and looking for work, local executives say. It also appeals to budget-conscious business travellers.” As evidence, during the crisis following 9/11, during the first quarter of 2002, “extendedstay properties were 70 percent full, compared with 55 percent for all hotels”.

Looking at the past one can conclude that if there is one segment of the tourist accommodation market that has weathered economic downturns and contraction in visitor numbers, it is the extended stay segment, or serviced apartments.

Eduard Elias, Cycas Hospitality The growing popularity of apartment style accommodation – as evinced by the rise of Airbnb – should provide a growing leisure market for extended stay accommodation which, boosted by the falling value of the pound, is capable of providing a viable bulwark against any temporary drop in corporate demand.

Put all of these factors together, throw in the international appeal of a weaker pound, and you have a picture of a sector well placed to cope with any future turbulence.

Eduard Elias, Cycas Hospitality

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Families ' £400 worse off after brexit vote increases cost of summer spending As Value of Holiday Pound Plummets consumers look to innovative ways to manage their holiday cash

“Holidaymakers have always been subjected to poor exchange rates and extra charges when spending their money abroad. The recent fluctuations in exchange rates have made them even more aware of such costs and are increasing appetites for alternative solutions.

“Prepaid financial services companies are seeing increased demand from travelers wanting to store travel money at times when rates are favourable, locking in their holiday spending sometimes months ahead of time.

“Using prepaid travel money cards to store currency is a popular way to guarantee the price of holiday spending in advance.

British holidaymakers are starting to feel the effects of Brexit and weaker exchange rates on their holiday spending according to a survey* of summer holidaymakers.

“In addition, we are also seeing the emergence of services such as Supercard by Travelex, allowing travelers spending money to be converted at the wholesale exchange rate (rather than the lower retail rate).

The average holidaymaker heading to the EU is £51 worse off per person, per week, according to the survey undertaken by Prepaid International Forum (PIF), the not-for-profit trade body for the prepaid financial services sector.

“The growth of contactless and mobile payments such as Apple Pay are also leading to increased interest in tech and wearable payment devices devices, that help make carrying money abroad more convenient.”

This is based on the average UK holidaymaker spending £241 per week while on holiday and exchange rates plummeting 17.5% (from a high of 1.43 to 1.18) since the vote to leave the EU. This means an average family of four, taking a fortnight’s holiday in the EU, needs an extra £408 to match their spending on the same holiday last year.

As if to rub salt into their wounds, it is ‘Remain’ voters who are hardest hit, according to the survey. 54% of those suffering from weaker exchange rates on foreign summer holidays are ‘Remain’ voters, compared to 46% ‘Leave’ voters. ‘Remain’ voters also reported spending more while on holiday (£258 per person, per week compared to £221) further increasing their post-Brexit losses.

According to experts, increased holiday spending costs are encouraging travel money providers to look at new ways to help holidaymakers get better deals.

Alastair Graham, spokesperson for PIF, says:

Google partnership is just what the doctor ordered for Glaxo SmithKline GlaxoSmithKline has been a revelation since the Brexit vote five weeks ago. The devaluation in sterling has obviously helped, as a vast amount of its revenues come from the US, but since the vote to leave the EU, Glaxo has further solidified its presence in the UK. It announced that it is investing £275m in three UK manufacturing sites and the news broke that it’s teaming up with Google’s life sciences arm, Verily.

Together they will invest around

£540 million over the next seven years into researching and developing bioelectronics medicines as they continue to diversify from their current portfolio of drugs.

The share price currently trades just above the £17 mark, which is a staggering 18% rise since June 23.

They are now only £1(5.8%) from their all-time high of £18.16 and whilst it may prove very difficult to get close to those sorts of levels this year, it is not unfathomable that the firm will hit the lofty heights of £18 in the longer term if it continues down the path of innovative medicines.

Vinay Sharma, Senior Trader, ayondo markets

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5 ways to improve your customer service and stay on the right side of 2016's ever-demanding consumers New research undertaken by virtual assistant service provider ava has shown that 51% of people in the UK would happily pay over the odds for something if it meant they received better customer service.

The study also confirmed that 33% of us are particularly angered by poor call handling services, while 29% cited unhelpful store staff as their biggest bugbear. Bad websites, slow responses to email queries and a lack of social media interaction also grind our gears. To that end, here are five ways to improve your company’s customer service…

Jo Causon, CEO of The Institute of Customer Service, recently said: “Getting it right first time has to be a prerequisite for any organisation. Customers expect to be dealt with quickly and competently - as soon as they start to feel let down or ignored, their trust is lost.”

Her comments were made shortly after it was announced that Amazon.co.uk currently leads the way in the UK Customer Satisfaction Index (UKCSI).

The report also showed that it is possible to make significant customer service improvements in a relatively short space of time. Indeed, Wilko secured second position, having risen from 45th place in 2015, while Land Rover made an even more impressive improvement, rising 54 places since July 2015.

It goes to show that if you put the effort into getting your customer care right straight away, your reputation - and ultimately your profits - will inevitably grow.

1. Get it right first time

2. Be quick (consistently!)

Companies are becoming far less likely to get a second chance to rectify a customer service mishap. As such, it’s crucial that you start as you mean to go on.

According to research by Toister Performance Solutions in 2015, customers now expect businesses to reply to their email within an hour.

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According to research by Toister Performance Solutions in 2015, customers now expect businesses to reply to their email within an hour.

Once upon a time, consumers were happy enough to receive a response on the same day. Things have changed and businesses are under an incredible amount of pressure to be responsive.

Social media has really changed the game in terms of how quickly businesses must react to queries and complaints.

Facebook keeps close tabs on how long it takes you to reply to people. This shows you how it works in a little more detail.

Getting the elusive “Very responsive to messages” badge of honour isn’t easy. To be eligible, your page must have demonstrated a 90% response rate and an average response time of just 15 minutes over the previous seven days.

This is a tall order even for the biggest companies with the deepest pool of resources, but it demonstrates that if you can be consistently quick to deal with customers’ questions, other potential customers will notice.

In terms of dealing with phone calls, speed and professionalism are imperative. Research by Addison Lee in 2013 found that the average Briton will spend 22 days of their life being stuck on hold. Lengthy calls also cost us up to £385 a year on average.

3. Prepare for the ‘customer of the future’ & keep it personal As you can tell, the emergence of technology has had a dramatic impact on our customer service expectations and it’s safe to assume that these will only grow even further in the coming years.

The Institute of Customer Service recently conducted some research into the ‘customer of the future’ and it’s clear that businesses will have their hands full.

One of the key takeaways from the report was that consumers will want a personalised service. In fact, this is already happening to an extent.

Some brands are also equipping their in-store staff with tablets, which enables them to offer a more thorough, customised service to shoppers. From a customer service standpoint, we can say with great confidence that automated systems aren’t going to cut it for much longer.

People don’t want to be palmed off on a robot - they want human contact and to feel like the company actually cares about them.

4. Treat social media like an actual store Research undertaken by BDRC Continental and published by Marketing Week showed why it’s so important that brands have a robust social media strategy.

BDRC Continental Director, Tim Barber, was quoted by Marketing Week as saying: “It is 2016 and people expect a rapid response. If they don’t get it, you could lose them forever.” Crucially, he suggested that businesses need to treat social networking platforms as an extension of their bricks-and-mortar stores.

“You have to have the infrastructure in place to respond to every single tweet – that’s important,” he added.

“You don’t pick and choose who you speak to when someone walks into a store – you aim to speak to everyone, so why do the opposite on Twitter? Treat every Twitter user like a shopper inside your flagship store.”

In 2013, the Internet Advertising Bureau conducted a study, which concluded that 90% of consumers would recommend a brand after interacting with them on social media. The main lesson here is that customers’ habits are changing and businesses - regardless of their size cannot afford to view social media as a “nice to have”. It’s essential.

5. Earn new customers’ trust by shouting about your good service We’ve already seen how Facebook allows brands to promote how responsive they are, but are businesses doing enough to shout about their exemplary levels of service elsewhere?

This Trustpilot report from 2015 explained why customer reviews and online reputation are the “cornerstone of online success”.

One point in particular summed it up nicely…

“Online reviews are the middle point of digital and traditional business, where customers meet sellers and talk to other customers about their experience with a particular seller.”

Earlier this year, Trustpilot announced that it had garnered more than 20 million reviews across 130,000 businesses in 119 countries. Online reviews are crucial as they can make all the difference between securing a new customer and seeing them take their money elsewhere.

The overriding message is this: if you’ve put so much time, effort and money into improving your service offering, make sure everybody knows about it. Otherwise you won’t reap the rewards.

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A challenging time for M&A activity but opportunities arise for the right investors Hedge funds and day traders might like volatility, but mergers and acquisitions deal-makers do not.

M&A activity is closely aligned with market confidence and stability, and the events in the UK over the past month have played a significant role in upsetting the potential deal pipeline globally. But will this be a short term stumble, or a longer term slowdown in activity as the UK comes to grips with its new future?

Following the UK’s decision to leave the EU, the FTSE has plummeted – and then bounced back to an 11 month closing high. Sterling has hit a 31-year low against the dollar, a prime minister has resigned and only the second female UK prime minister in history filled that power vacuum quickly thereafter promising to heal divisions. A lot of deals were on hold prior to the referendum and the shock of the result has forced some to be pulled.

Ratings agency S&P also predicts tougher times for the UK. Following the Brexit result, S&P revised their macroeconomic assumptions for the UK downward, predicting the country will barely escape a full-fledged recession. It also revised growth to 0.9% in 2017, less than half of 2.2% previously forecast in April and dropped the UK’s coveted AAA rating by two notches.

This uncertainty, coupled with fears of a Donald Trump presidency in the US, has rippled into a wider problem for the global M&A market as many planned deals look to have pressed the pause button. According to a Dealogic report, global M&A activity for the first half of this year amounted to USD 1.71 trillion, an 18 per cent drop compared with the same period last year. It’s not Armageddon, but it’s certainly not time to celebrate either.

But is there a silver lining to the Brexit cloud as some see this lull as a buying opportunity?

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At some point the market will realise the impact will not be immediate with trade continuing with the world’s fifth largest economy, despite the potentially messy exit from the European Union. We’ve already seen the aforementioned bounce back in equity markets and I believe M&A will follow suit.

Foreign buyers – particularly those in America, The Middle East and Asia – will and should be taking a very close look at UK companies, as assets in the UK become instantly cheaper in the day following the Brexit vote, especially those purchasing in Dollars or currencies linked to the Dollar. This could present buying opportunities within the UK market, as competitors look to acquire or consolidate assets.

SoftBank, the Japanese telecoms group, is one market player who has taken advantage of the weak Sterling against the Yen having recently made an offer to purchase the UK-based chip designer Arm Holdings for £24.3bn, following just two weeks of negotiations. The current terms have SoftBank paying £17 in cash for each share in Arm, a 43 per cent premium to its closing price the week before the deal was announced.

Outbound UK acquisitions may also increase as UK-based companies, especially those with substantial overseas operations, will see profitability (in Sterling terms) and offshore cash increase, increasing their financial performance as well as their acquisition war chests. As the long process of extracting Britain from the EU develops, outbound deals from the UK will therefore need to increase, with UK firms needing more substantial operations on the Continent, especially in financial and professional services sectors.

No one has a clear crystal ball to predict the ultimate UK and EU relationship, but even challenging times present opportunities. One company’s disposal, even at fire sale prices, is another company’s purchase at a bargain. All it takes is a bit of courage and confidence.

Professor Scott Moeller, Director of the Mergers and Acquisitions Research Centre

Big banks can be challengers too Paul Bowman from Market Gravity shares his insights on how traditional long-term strategies are dead and banking organisations are finding new ways to innovate quickly The banking sector is currently polarised between two camps: established high-street banks and the new breed of startup ‘challenger’ banks that are turning the traditional banking model on its head. The challengers have made some inroads, creating a more competitive market to keep the larger, more established banks on their toes. But does the culture and business as usual (BAU) mentality of the established banks stifles their innovation, or can they be challengers themselves?

It would seem long-term strategies and traditional consulting models are dead, especially within the banking and finance sectors. The high street banks are fighting back, and quickly: there is an emergence of traditional players who are embracing digitisation of the sector and disruptive technologies, bringing their offerings into the digital age.

They are building their propositions around the consumer and are thinking and acting differently. By playing to the strengths they have over and above the start-ups, it puts them back in the driving seat.

By combining their experience with innovation they have the potential to disrupt on a larger scale.

Challenging tradition Traditional banking brands undoubtedly have core strengths that set them apart from the fintech companies moving into their space, for example, by using their physical branch presence and combining it with an improved digital service, banks can offer what the start ups can not - an all-encompassing customer experience that blends the physical and the digital, spans a range of needs and reaches a broad audience.

The two greatest weak spots of traditional banks, and where focus must be concentrated, are technology and reputation. The challenger banks have been able to

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start with a blank sheet of paper on both counts. Some, like Atom, have built their bank using gaming software to encourage a competitive environment where deposits and spending on certain items can be ‘rewarded’. But having modern IT systems doesn’t automatically lead to the best customer experience – and it’s those that build reputations.

The established banks must work harder to offer account holders an integrated, multi-channel service where branches and online experiences are connected, and banks have the right data to hand at the right time to offer a connected, personalised service.

The time is now Now is the time to act. Many of the new kids on the block are yet to get a banking license or are still looking for funding. Many simply don’t have the pedigree of employee or investor you’d find in a traditional bank or don’t offer the breadth of banking products or the same customer services that a branch can.

There are four main elements banking organisations need to review and consider to keep up with these fast-paced changes: • Data – this allows organisations to understand and focus on the current situation and provides insight into customer behaviours and preferences, allowing them to recognise, move and adapt to changing demands quickly • Technology – this is advancing rapidly and means that both the time and cost to delivery to market have been collapsed which means bad news for traditional consultancies • Changing customers – it is impossible to predict what modern consumers will want in the future so focus on what they want now in the short term and deliver it quickly and effectively • Traditional barriers to entry – these are now open doors to fintech startups. There are around 100 new startups applying for banking licenses across Western Europe, which means larger, traditional corporations are having to respond to new technology rapidly and overhaul their short-term planning to

make sure they don’t get left behind.

Today’s consumers want banking options that are built around the lives they lead now; convenient; easy to manage and use technology in an intelligent way to help them achieve the things they want.

New technologies from apps and wearables, to Facebook messenger bots will change the way consumers bank, shop and manage their money.

But it seems that although consumers like the idea of a truly 100% online bank, they’re also quite wedded to the branches. There is still a human desire to get some reassurance and interaction from other knowledgeable and attentive human beings – especially when there’s risk and money involved.

But those branches must embrace technology too - offering a superior customer experience and faster payments.

New ways to pay with B It’s fully achievable as witnessed last month by the investment in disruptive technology by Clydesdale Yorkshire Bank Group (CYBG). The launch of ‘B’, a customer-designdriven online banking service, is a UK first and promises the fastest account-opening process and a host of features designed to enhance customer engagement and retention.

Existing customers can make the transition into mobile banking and younger, tech-savvy users will be attracted by the new experience.

It was achieved through intrapreneurship, the ability of established corporate organisations to combine experience with innovation by being entrepreneurial and innovative. It answers the dichotomy of how to achieve both by taking an approach where teams and individuals are driving new venture ideas from within the organisation. ‘B’ was a direct result of intrapreneurship and a testament to how established banks can play to their strengths whilst adapting to digitisation.

How did they do it? Proposition and design consultancy, Market Gravity helped CYBG place the importance of innovation into their growth strategy using technology to deliver better, sustainable services for customers faster, and in doing so

created a breed of ‘new challengers’.

Bank on it In conclusion, the market is moving faster than ever before and it’s important to recognise that we can no longer predict the future with any certainty. This hails bad news for strategists and traditional consultancy models. We believe that in response to all this change there is a new breed of challenger emerging. They are challenging and transforming their businesses by creating new ‘mission based’ cultures that empower their most talented people to respond to business challenges at pace without the traditional hierarchy and complex decision making processes.

They are embracing diversity and collaboration and bringing small teams of people together from across their businesses to solve business challenges.

They are finding rapid ways to bring their new innovations to market in record time, sometimes within 10 to 20 days, so they can learn from their customers and staff before they invest significant resources in building and scaling the solution for a full launch. They are opening up their ecosystems and looking for partners that can help bring new products and services to market quickly without impacting their existing platforms and systems.

With the emergence of new entrants to sector, in the form of completely new brands and new challenger products and services from the more established players, it’s important for banking businesses to stay one step ahead and embrace the technological innovations and digital trends to stay ahead in this competitive and fast-moving marketplace.

Market Gravity was founded in 2009 by Peter Sayburn and Gideon Hyde. They founded the company to help big businesses transform ideas into breakthrough propositions and inject an entrepreneurial spirit into corporate environments. Market Gravity’s clients include Barclays Bank, HSBC, BP, Boots, Argos, Standard Life, British Gas and the AA. Find out more at www. marketgravity.com

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"Credit Crunch Kids" raised on lessons in financial responsibility .

acquisitions deal-makers do not.

60% of Parents Opening Accounts Aim to Teach Kids How to Manage a Budget Parents of credit crunch kids are doing their bit to learn from the mistakes of the past.

Joining the evergreen list of life-lessons taught to children, such as never speak with your mouth full or always look twice when crossing the road, are the ability to manage a budget and avoid falling into debt.

Research by Prepaid International Forum (PIF), the notfor-profit trade body for the prepaid sector, reveals that the dramatic increase in specialist prepaid child accounts is being driven by parents’ desire to ensure children grow up with a strong sense of financial responsibility as well as basic skills such as managing their own budget.

60% of new accounts for children are being opened with this reason in mind according to a recent survey by PIF. As a result, PIF says, the number of live accounts and the variety of options on offer are growing dramatically. goHenry, one of the leading providers and first to market here in the UK, offers a pre-paid debit card and app with

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unique parental controls and currently has 250,000-plus users. Similarly, another popular brand, Osper reports hitting a peak of 30-plus cards being ordered every minute with at least 20% growth in orders every month since 2014. Nimbl, a recent entrant to the market has also reported a very positive response and higher than predicted sign-up rates.

Alastair Graham, spokesperson for PIF, says: “Parents are increasingly aware of the pitfalls of financial irresponsibility and excessive debt. Many will have suffered as a result of the recent economic troubles and they don’t want their children to make the same mistakes.

“Equally, with it becoming harder for young people to get on the property ladder and fears of meeting the costs of retirement, it is in parents’ own interests that their children are less of a financial drain as they grow older.

“In response to this demand we’re seeing increased innovation from financial services providers, especially those in the prepaid sector, looking to offer solutions to parents and children alike, meeting modern spending habits as well as the ability to track and analyse spending and budgets.”

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Alex Zivoder, CEO of goHenry, adds: “At goHenry we’ve heard from thousands of parents over the years about how we’ve been able to help their children learn the value of money and how to confidently manage a budget by providing a pre-paid debit card and app with unique parental controls. Pairing pre-paid with apps is definitely a winning formula – the ability for young people to track in real-time exactly how much they have spent and what they have left to spend is a powerful way to encourage sensible money decisions.”

Another industry survey conducted by nimbl, a financial platform for and provider of prepaid cards for 8-18 year olds, revealed parents’ key concern is the shift away from cash in everyday transactions. Two-thirds (66%) of parents surveyed believed that the increased use of cards and online transactions makes it harder for children to learn about money.

Also, with ‘single click’ virtual payments, parents who may have already been burnt with in-App purchases or unexpected bills resulting from their child’s Xbox or iTunes downloads, feel there is a need for children to appreciate the true cost of easy, ‘invisible’ money transactions.

Clint Wilson CEO and founder, nimbl, believes that parents want reassurance about how their children can manage the financial challenges of a digital world.

“New financial services for children must balance the ease of making online transactions with safeguards, such as budget setting or live reporting so that parents can see how money is being spent.

“Used in the right way, this allows parents to give children a degree of independence along with oversight to ensure budgets are managed and see where money is going.

“Parents can then offer advice and guidance, helping teach skills children will need when they begin work or leave home.”

Customer dissatisfaction with bank fees fuelling opportunities for e-money innovators Traditional banks are at risk of being buried by new, innovative e-money providers if they fail to overhaul outdated fees and charges systems, according to new research.

Over half of the 2,000 respondents in the survey by Neopay reported frustrations with their high street bank, with a quarter saying they were most annoyed at banks for applying unfair charges – for sending money overseas, becoming overdrawn etc.

With a host of new e-money entrants into the market offering innovative products - often boasting lower charges for money transfers and more modern features such real-time transaction updates - high-street banks are

now being warned they risk being left behind if they fail to innovate.

Indeed, a further 41% of respondents in the survey said that banks could provide a better customer experience by offering fairer and lower fees and charges.

Consumers also cited other advances, such as instantly updated account information (32%) and banks finding innovative ways to improve the banking experience (20%), as ways traditional banks could improve – leaving the market ripe with opportunities for e-money providers.

Commenting on the findings Scott Dawson, commercial director at Neopay, said: “Living in an increasingly digital world means that consumers have grown accustomed to services being delivered instantly, and at low - or no costs. As a result, the charges and time scales inherent of the traditional banking system are becoming increasingly frustrating for consumers.

“There are now a whole host of e-money businesses entering the market in order to tackle these issues and create novel solutions that provide consumers much faster ways of accessing and exchanging funds. Innovative businesses such as international money transfer service GlobalWebPay.com and currency exchange business WeSwap have changed the way the market works by offering consumers the services they need, with much lower associated costs and charges. It’s likely that similar innovative businesses will continue to enter the market, looking for ways to challenge the traditional status quo.”

UK firms not prioritising better online security The majority of the UK’s SMEs are not prioritising better online security in the next 12 months, despite the impending impact of the EU’s new data protection legislation, General Data Protection Regulation (GDPR), which was adopted in April 2016 and takes effect within two years. Notwithstanding the EU referendum result, the Information Commissioner’s Office has confirmed that, ‘if the UK wants to trade with the single market on equal terms we would have to prove ‘adequacy’ - in other words UK data protection standards would have to be equivalent to the EU’s GDPR framework starting in 2018’.

The findings, which form part of Close Brothers’ quarterly survey of UK SME owners and senior management from a range of sectors, found that 63% of companies have made the decision not to invest in better online security while the remaining 37% indicated they would.

“Businesses of all sizes should be aware of their responsibility when it comes to protecting customer data,” said Ian McVicar, Managing Director, Close Brothers Technology Services. “Keeping customers’ details safe are at the core of the EU’s new data protection legislation, General Data Protection Regulation (GDPR), which was adopted in April 2016 and takes effect within two years.

“It is intended to strengthen and unify data protection for individuals within the EU and the penalty for noncompliance, which is up to 4% of annual revenue or 20

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million, whichever is the higher.”

A mixed picture has also emerged about UK firms’ readiness for the impact of cybercrime on their businesses. While the majority of the UK’s small and medium sized businesses (SMEs) are concerned about cybercrime and the impact it might have on their business (57%), a significant minority are not (36%).

Further analysis of the results reveal that only 41% of businesses feel ‘adequately protected’; 17% are unsure of their levels of protection; 21% know it is an important issue but ‘haven’t had time to look into it’, while a further 21% don’t think ‘it is an issue for our business’.

When asked the question ‘do you have data breach / security policies in place around the use of email, internet and mobile devices?’, 51% of respondents answered ‘yes’, 38% ‘no’ with 11% ‘unsure’.

Ian continued: “This picture of uncertainty may be driven by the feeling that many SMEs, particularly in sectors like construction, feel that they don’t rely on IT as much as companies in more technologyfocused industries. Even if this is the case, companies must remember that GDPR requires all personal data collected to be gathered lawfully, and for specific purposes only. In addition, it must be used for the purposes for which it was collected, and must be accurate and up-to-date.”

Unilever buys Dollar Shave Club: desperate or strategic?

IMD Professor Mike Wade on the surprising deal Unilever announced last week that it would purchase Dollar Shave Club for $1 billion. On the surface, this may look like yet another desperate attempt by a lumbering legacy giant to buy (and overpay for) digital street cred. However, look at little more closely, and this acquisition is packed full of strategic and tactical benefits.

For as long as anyone can remember, the market for razors, or more specifically for razor blades, has been the closest thing to an annuity that exists in business.

Unwanted hair stubbornly grows through all business cycles. High fixed costs and an iron grip on distribution has led to an oligopoly in most advanced markets, so the gains are shared among a few huge players. In the US, Gillette (part of P&G) and Schick (part of Energizer) have owned 80% of the market for decades.

Few people take pleasure in buying razor blades.

They are expensive and the purchase experience is pretty crappy. For example, in many locations across the globe, razor blades are in locked cabinets, so that

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they cannot be directly taken off the shelves.

Thus, we have a great potential for disruption: high profit margins for incumbents, coupled with low cost and experience value for consumers.

Enter Dollar Shave Club.

Dollar Shave Club is a the venture capital financed, quirky, social media savvy upstart, who introduced cheaper ‘good enough’ razors and blades, delivered directly to a consumer’s home. Over the past two years, company’s growth has exploded, and today it owns an estimated 10% of the US razor blade market. Dollar Shave Club achieved sales of $150 million in 2015 and expects to reach $200 million this year.

Gillette, with a 60% share of the market, took notice, but their options were limited by their incumbent position. They launched their own home delivery razor ‘club’ but maintained their margins, and thus were a lot more expensive than Dollar Shave Club. In short, they stopped short of disrupting themselves.

Enter Unilever.

Without a legacy business to disrupt (Unilever is not a significant player in the razor or blade market), Unilever saw Dollar Shave Club as an entry point into a coveted market dominated by its nemesis, P&G. Unilever didn’t need to have an awkward conversation with a channel partner like Duane Read or CVS about cannibalization and channel conflict.

What happens next will be interesting to watch. How will Gillette react? How will Unilever leverage Dollar Shave Club? Will other startups, like Harry’s capitalize on this new competitive space?

Unilever looks very smart in this deal. Its own ecommerce efforts have not been spectacular, and so it will be able to learn a lot from Dollar Shave Club.

Plus, it controls a large number of bathroom brands that it could leverage on the same platform as Dollar Shave Club, such as Axe, Dove, and Noxema. Dollar Shave Club combined cost and experience value, and Unilever brings a strong and robust platform into the mix. All together, Unilever now has the ingredients to build a new and powerful digitally-enabled business model.

Michael Wade is the Cisco Chair in Digital Business Transformation, and Professor of Innovation and Strategic Information Management at IMD. He is Director of the Global Center for Digital Business Transformation and co-Director of IMD’s new Leading Digital Business Transformation program (LDBT) designed for business leaders and senior managers from all business areas who wish to develop a strategic roadmap for digital business transformation in their organizations.

He is also co-director of the Orchestrating Winning Performance Program (OWP).

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Woo's "The Woondex": HR's Guide to Trends Driving Today's Tech Professionals.

Woo’s quarterly survey on career decision-influencing factors can help hire the right talent The latest Woondex from Woo, a platform targeting highly qualified passive tech candidates, clarifies the state of the job market to allow companies to see areas of most concern to their potential tech hires.

The Woondex is generated via an analysis of what thousands of tech professionals say they want for their ideal jobs and related benefits.

The Woondex provides data on job compensation and other trends, such as: • Salary expectations of men vs women - Data show a trend of 16% decline in salary expectations since the beginning of Q1 2016. Moreover, for women in technology positions, compensation is impacted by the gender pay gap, with women’s salary expectations 14.4 % and 19.6% lower than men’s in San Francisco and New York, respectively.

• Despite the overall trend of declining salary expectations, the data revealed that some positions (data scientists and software engineers) actually sought 6% and 3%, respectively, above the average offered compensation. Others followed the trend, expecting 5% less (product managers) and 14% less (UX Designers) than the offered salaries.

• Interestingly, salary didn’t always correlate with quality of life. For example, Boston offers a lower average salary ($134,411) than Seattle ($143,910) but provides a higher quality of life at 191.14 than does Seattle at 189.36.

“The Woondex is a great way for HR pros to learn the expectations of today’s tech talent,” says Liran Kotzer, CEO of Woo. “They can get a complete picture of the passive candidates, who are often the better and right candidates they need to fill critical tech roles,” he added.

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Woondex Q2 2016 Career trends driving tech talent in the US: A quarterly report for HR professionals What’s Inside: • Compensating tech employees: Sliding salary expectations • Paying male vs female techies: Women expect less • Tech specialties that expect more/less than average offered salaries The Woo Index, or The “Woondex,” is a report created by Woo.io, a platform targeting highly qualified passive tech candidates. The report provides Human Resources with insight and clarity on the US job market, specifically the career compensation and other trends driving the tech talent sector. This empowers HR professionals with the data they need to make effective hiring decisions.

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10 Best Workplaces in Manufacturing and Production This year’s ranking of the best manufacturing employers includes the makers of GoreTex and M&Ms. - via the Great Place to Work review

1. Hilcorp “This is a great place to work because all the people here give a damn. We all do our best and put our best foot forward to make things better for tomorrow. We all show up every day with our A game and do our best. This is unique to Hilcorp because these days it’s hard to find one individual to go the extra mile, here we have a whole company full of them. I am proud to be considered a Hilcorp employee.”

Headquarters Location: Houston, Texas Numbers of locations: 18 U.S. Employees: 1,400 Global Employees: 1,400 Year Founded: 1989

3. Arthrex “Here at Arthrex, I feel that each year gets better than the previous one, which is no easy task as I can say for the last 19 years … I feel healthier, physically and mentally, by being challenged to do the best job that I can. I feel stronger emotionally by working with co-worker friends that support me when needed. I feel that Arthrex has engaged a process to help people be better, healthier individuals that can achieve high levels of success when working as a team. I am a better person having shared this opportunity and look forward to working at Arthrex for another 19 years.”

Headquarters Location: Naples, Fla. Numbers of locations: 13 U.S. Employees: 2,246 Global Employees: 3,192 Year Founded: 1984

2. Tactical Electronics “This company’s owner is always making decisions based upon the well-being of the employees. We are treated fairly and with respect and are provided with a rewarding and fun atmosphere to work in every day. The work that we do is exciting and meaningful – and we have a blast working together as a team each day. I enjoy coming to work every day. We celebrate victories together and work through challenges that arise as a team that is united and collaborative. Decisions are made with the employee’s best interest in mind.”

Headquarters Location: Broken Arrow, Oklahoma Numbers of locations: 4 U.S. Employees: 67 Global Employees: 68 Year Founded: 1999

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4. Stryker “I think that the people that work at Stryker are a unique brand. We don’t just make a medical device. We truly care about making that device the best that it can be for the person that will use that device. I do believe that what we do every day makes a difference in the lives of the healthcare providers and patients that use our devices.

And…we are a team. When push comes to shove, this group will come together to make it happen, meet the deadline, make sure that quality is built into our products every day. Right down to the last person on the production line, Stryker people make it happen, and I am really proud of that! That’s a great reason to come to work every day!”

Headquarters Location: Kalamazoo, Mich.

Numbers of locations: 172 U.S. Employees: 12,579 Global Employees: 22,992 Year Founded: 1941

6. W.L. Gore & Associates “I believe that the uniqueness of this company is that the majority of its associates share a common bond of wanting to build relationships with one another and from that we all can accomplish more. There is a personal pride and commitment in wanting a business, project and individual to succeed when you are personally vested with those associates. With that support structure, it allows associates to be more creative and more productive.”

Headquarters Location: Newark, Delaware Numbers of locations: 38 U.S. Employees: 6,579 Global Employees: 10,690 Year Founded: 1958

5. Field Fastener “Field is more than a business focused on generating revenue. The company and its team members embrace being called to a higher purpose and take hold of opportunities to impact the lives of people and improve people’s futures both within the Field Family and throughout the community. A high value is placed on each individual team member and the desire to build strong, lasting relationships permeates throughout the Field team; whether those relationships are with our customers, our suppliers, our community, or our team members. I am proud to be a part of this family. I have worked at many places over the years and none come close to comparing with Field.”

Headquarters Location: Machesney Park, Illinois Numbers of locations: 1 U.S. Employees: 78 Global Employees: 78 Year Founded: 1976

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7. JM Family Enterprises “The operational word in our corporate name is FAMILY. I truly believe, at all levels, that the culture here is to make people feel that they are part of a bigger family, where people have a true and sincere desire to care about you as an individual and not just as a co-worker. This company truly takes care of its associates; our benefits are rich and in an era where others are cutting back, our company does everything it can to make people want to stay here.

Examples are our 401K, profit sharing, pension plans, Health & Wellness Centers, cafeterias and gyms to name but a few.”

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Headquarters Location: Deerfield Beach, Fla. Numbers of locations: 26 U.S. Employees: 4,005 Global Employees: 4,048 Year Founded: 1968

Numbers of locations: 2 U.S. Employees: 137 Global Employees: 137 Year Founded: 1995

8. American Transmission “One of the critical factors that makes American Transmission a great place to work is the passion that people—from the CEO to individual contributors — bring to their job every day. People here believe in the mission of the company and their role in accomplishing that mission.”

Headquarters Location: Waukesha, Wisconsin Numbers of locations: 5 U.S. Employees: 635 Global Employees: 635 Year Founded: 2001

10. Graco “The challenge and variety of work makes it a very interesting place to work. I’ve continually seen new innovative ideas in design, manufacturing and management over the last six years and I expect that will continue. There is a vast knowledge base here and everyone is willing to share their knowledge and experience whenever needed.”

Headquarters Location: Minneapolis, Minnesota Numbers of locations: 10 U.S. Employees: 2,212 Global Employees: 3,314 Year Founded: 1926

9. MBX Systems “A lot of corporations talk about caring about their employees. MBX Systems actually does. My manager take a personal interest in helping me to achieve my potential within MBX and helps me in several ways to take initiative.

Simple things like letting me switch up my lunch to leave early to run errands of make appointments. More complicated things showing concern for my personal situations and helping me with suggested, options, and strategies.”

Headquarters Location: Libertyville, Illinois

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Line of credit for the acquisition of assets of Brazilian insolvent companies On August 25, 2016, the Brazilian Development Bank (Banco Nacional de Desenvolvimento Econômico e Social – BNDES) approved a Program to Promote the Revitalization of Productive Assets (Programa de Incentivo à Revitalização de Ativos Produtivos), which aims to support the transfer of economically viable assets (productive assets) held by insolvent companies, i.e. companies in judicial or extrajudicial recovery, bankruptcy or, at the discretion of BNDES, in economic-financial crisis and high risk of credit.

the social function of the company, preserving jobs and generating income. In addition, the program will strengthen the adoption of best practices of governance and management in relation to the disposed assets.

Law No. 11.101, of February 9, 2005 (the Brazilian Bankruptcy Law) governs the recoveries in and out of court and the bankruptcy of the individual businessperson and of the business company, including the companies performing in the aeronautic industry, whose certificate of formation provides for the exploration of air services of any kind and of aeronautic infrastructure. This law prioritizes the recovery of companies rather than the bankruptcy, which may maintain job positions and safeguard the interests of creditors, by preserving the company, its social-interest role and encouraging economic activities, provided that the continuance of the debtor´s operations is viable.

Among the alternatives to permit the company´s judicial recovery provided for in the Brazilian Bankruptcy Law, it is possible to structure the deal as a partial sale of assets or the formation of a specific purpose company to adjudicate, in payment of the claims, the debtor´s assets.

The indirect support, through the financial agents of BNDES, may only occur if the company is under judicial or extrajudicial recovery or bankruptcy proceedings.

Companies in economic-financial crisis and high risk of credit are not eligible for this purpose.

The realization of assets is also admitted in the case of a bankrupt company. The realization of assets means the disposal of bankrupt´s assets. Pursuant to Article 140 of the Brazilian Bankruptcy Law, assets will be realized in accordance with the preference order, that is: (i) disposal of the company, by selling pre-determined block of assets; (ii) disposal of the company, by selling branches or production units separately; (iii) disposal of pre-determined blocks of assets of the debtor´s establishments; and (iv) disposal of assets considered on a case-by-case basis.

The Brazilian Bankruptcy Law innovates in that the bankrupt´s assets, either entirely liquidated or not, will be discharged of labor, occupational accident related and tax obligations. This is because the acquisition is not of the bankrupt legal entity´s liabilities but of the set of certain assets required for the production operations, which may include the transfer of certain specific agreements. These benefits are inapplicable where the buyer is a partner of the bankrupt or company controlled by the bankrupt, direct or indirect family up to forth degree, whether consanguineous or the like, of the bankrupt or of partner of the bankrupt or identified as agent for the bankrupt with a view to defraud the succession.

The alienation of productive assets of insolvent companies must be made to other companies that wish to acquire them to undertake economic activity and reinstate such assets to the production system. The new program aims to promote the exploitation, utilization and conservation of existing assets of insolvent companies, avoiding their deterioration and preventing the formation of environmental liabilities.

This program will have a budget allocation of BRL 5 billion and will be valid until August 31, 2017. The transfer of productive assets will stimulate economic activity and

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The direct support from BNDES will be intended solely to the purchaser and will be through loans (fixed income), with the possibility of introduction of securities subscription mechanisms. The seller must be an insolvent company.

The beneficiaries (purchasers) of the program will be companies and cooperatives, with headquarters and financial situation compatible with the acquisition and the intended exploitation of the asset as well as with the desired financing; (ii) the asset must be acquired for the purpose of undertaking an economic activity, even if different from that of the seller; (iii) the purchaser must have financial statements audited by an independent audit firm registered with the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - CVM); and (iv) the purchaser cannot integrate the same economic group of the seller, be a related party to the seller, or be identified as the seller’s agent.

Among the assets to be financed are industrial units, commercial establishments, equity participation representing the company`s control or part of the block control. The underlying asset of the purchaser’s interest is expected to be in the implementation phase, operational or disabled. This financing may also be extended to the acquisition of real estate, used machinery and equipment and intellectual property rights.

Studies, projects, consulting and auditing (in particular for the preparation of business plans, business restructuring, implementation of corporate governance practices and strategic planning), as wells as working capital associated with the acquisition and initial operation of the asset, may also be financed, provided that they are linked to the purposes of the program.

The financial terms and conditions of the proposed financing are the following: (i) interest rate: market cost benchmarks and/or financial cost equivalent to any already existing credit from BNDES by the seller of the asset, limited in this second hypothesis to the value of that credit; (ii) maximum participation of BNDES: up to 100% of the eligible items; (iii) basic spread: 1.5% per year; (iv) spread of risk: according to the risk of the purchaser; and (v) total period: the length of a grace period and amortization must be compatible with the designed cash flow, limited to a ten-year term.

This program will be very attractive for those investors that would like to acquire productive assets from Brazilian insolvent companies to develop their activities in Brazil. As a result of the so-called Operation Car Wash (Operação Lava Jato) many Brazilian companies are under judicial recovery proceedings and must dispose of their assets to survive.

Walter Stuber, Walter Stuber Consultoria Jurídica

“A Gamechanger changes the way that something is done, thought of or made; they transform the accepted rules, processes, strategies and management of business functions. They shift behaviour, shape culture and make clever happen.�

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Law Firm of the Year in �orth ��erica (Transactions) — PRIVATE EQUITY INTERNATIONAL

We thank our clients for the opportunities that have made this honor possible.

New York Washington, D.C. London Paris Frankfurt Moscow Hong Kong Shanghai

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STRINGED INSTRUMENTS AS INVESTMENTS?

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M&A ACTIVITY POST-BREXIT: WHAT ROLE CAN ASSET BASED LENDING HAVE?

IGF GROUP

VIOLIN ASSETS GMBH

PRINDIVILLE

INVESTING IN CLASSIC CARS AND SUPERCARS

Stevens & bolton llp

AVOIDING IMMIGRATION ISSUES IN DUE DILIGENCE: LESSONS TO BE LEARNT FROM BYRON BURGER

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Investing in classic cars and supercars With the financial markets still reeling from Brexit, an uncertain economic future ahead and ultra-low interest rates the new norm, now is a perfect time to look at alternative avenues of investment.

Classic cars and supercars offer a potentially lucrative return for investors, and although you can view them as a tangible asset – an investment you can touch, smell, hear, sit in and even drive – what really fires the market here is passion. Cars have a very special way of getting under your skin, of making one person feel they need to pay more for a particular model than the next person; emotion is a powerful motivator for buyers accustomed to getting what they want.

Some buyers are inspired by childhood memories. Others admire beauty and rarity. Celebrity and cinematic connections will always be a seductive lure; so will motorsport successes. The market loves a car with a tale to tell, an enthralling story to recount to friends and colleagues in bars and boardrooms.

And, of course, if you enjoy showing off, few other forms of investment make quite such a visible statement as four-wheeled exotica.

My view is that you should invest in a car because you like it. Combine pleasure with business. It takes away some of the sting of putting down the money in the first instance, then gives you enjoyment while you’re waiting for your investment to mature.

There’s no magic wand to finding the right car. Do your homework, make sure the car is certified accident-free and you know its history. You should be looking to get a broad understanding of the

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car’s background and in an ideal world, speak to a previous owner and collect whatever information you can. You have to dig around, talk to manufacturers, find out who was the first owner, who serviced it. When you’re looking at a classic car, employ a reputable specialist in the marque to give it a thorough, independent inspection – fakes and bad restorations are rife, so it really pays to peer beneath the shine.

How rare is it? How many were produced in that colour combination?

What is its provenance? Has it been owned by anyone famous or used in a film? An Aston Martin DB5, produced between 1963 and 1965, sells for around £800,000, almost double the price of its successor, the DB6, because it featured in Goldfinger and has since become synonymous with the Bond franchise.

The classic car and supercar markets are niche arenas and you may well find that the knowledge and contacts of a professional broker will be invaluable in helping you spend your money wisely.

But if you’re determined to go it alone there are some basic rules to follow.

The global appeal of classic cars is your best security: if the market in one country stumbles, there’s always another where things are still rosy.

Over a 10-year period classic cars have performed better than gold, art, wine and stocks and shares, even the housing market. Prices have increased by more than 400%. Total sales of classic cars at auctions were $144m in 2000; in 2015, they were just under $1bn. In total, the industry is worth more than £6bn.

Always buy the best you can afford.

But before signing on the dotted line, have the car professionally inspected to ensure you’re buying what you think you are. Stick to cars built in small production runs, nothing too mass-produced. For example, the Ferrari 456m. This car still has lots of legs left. It’s the last production Ferrari with pop-up lights, running with a fantastic V12. This car can carry two adults and kids and some serious speeds. With 550s changing hands for up to £150,000, these cars are still great value at £60,000 - £70,000. Check the Internet forums, read the specialist magazines, find out what makes the car desirable.

For example, prices for early air-cooled Porsches have gone through the roof, particularly for the 911. However, to fetch proper money these days they have to be in exceptional condition and preferably rare versions with motorsport connections; the RS, GT2, GT3 and GT3 RS derivatives are the real high flyers.

There will always be a good market for classics; in difficult times investors shift to tangible assets, which are beyond the whims of financial markets and which governments can’t touch. And you can trade them in any currency. To be termed classic, a car must be over 40 years old. Classic cars are exempt from UK capital gains tax and road tax if bought as investments.

After its stellar performance over the last decade the classic car market is levelling off. Without a doubt it will bounce back, but only once some of the rubbish has been sifted out of the market and only the very best cars remain. However, the market for supercars shows no sign of abating. Look out for the ultra-rare numbered models, such as the Ferrari LaFerrari or the McLaren P1, where production was very tightly limited.

ARISE Rarity can double the price. The LaFerrari was Ferrari’s first hybrid sports car and benefitted from lessons learned from the company’s Formula One operations. It’s a phenomenal car with probably the most desirable badge in the business. They originally sold for £1m, now they’re fetching as much as £2.8m: they’re an exceptionally rare beast and I’ve already managed to sell one of them.

McLaren the road car manufacturer is a comparatively young company, but the P1, made in Woking, is a world-beater. McLaren has followed the lead of Lamborghini and is producing crazy, outlandish designs that stir the emotions. It’s something that shouldn’t make sense, but it works. Straight from the showroom the P1 cost £750,000: now you’re looking at £1.7m, if you can find one. I’ve sold four – they’re popular because they’re British, they’re hand built, and have the performance to take on any other brand in the world.

But it’s not just about the very top end. Take the McLaren 675LT Spider. It’s a £300,000 car but only 500 were produced and global demand comfortably outstrips supply. That fact alone increases the value by £100,000 straight away.

Alex Prindiville, Founder, Prindiville

£150,000 gives you access to the supercar market. There are two types of buyer; those who see the car simply as an asset, and those who genuinely love cars, are buying for the enjoyment, and are happy if the car makes money on top of that.

I remember an old boy coming into my showroom in Limehouse to buy a S-type Jaguar. He came in with a friend and it was obvious the car meant a lot to him. It turned out it was almost the exact model that had belonged to his father and it obviously brought back a lot of memories. He never thought he’d be able to buy one but now he could, for £22,000. He started crying and, of course, we all had tears in our eyes by the end.

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Stringed instruments as investments?

More than ever before, the investment in material assets now offers exciting investment opportunities. Material assets, in times of high uncertainty in the financial markets and in light of low interest rates, are a special type of value; they deserve to be included in every portfolio. As an investment class, stringed instruments are profitable, low-volatility investment assets: they enhance a portfolio in a unique way.

Ex-entrepreneurs with an enthusiasm for music can continue to be “entrepreneurial” by purchasing a high quality stringed instrument. They invest a portion of their sales proceeds in a way that will maintain value; at the same time, they support young musicians.

According to KfW, a German government-owned development bank based in Frankfurt, more than 600,000 medium-sized entrepreneurs intend to sell their company or hand it over to a successor by 2018. But people who have held the reins and made all the decisions for thirty years or longer cannot let go that easily. Some want to stay in the business after selling and do some consulting. Others try their hand at investing, attempting to put their sales proceeds to use as profitably as possible. The fewest pursue purely private interests or hobbies. But the one is not exclusive of the other.

New asset class: stringed instruments Those who are keen on music can combine their personal passion with entrepreneurial objectives. What will make this possible is a new asset class: stringed instruments produced by old and new masters. The fact that they are a scarce commodity and the rising demand will ensure price stability and – if you are well advised and avoid making mistakes – the prospect of a good profit as well.

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Attractive average yields In 2011 the “Lady Blunt” made a name for itself internationally. Antonio Stradivari’s master violin was auctioned off for 11.6 million – as of today the highest price ever paid for a musical instrument. The “Albert-Fuchs-Taxe”, the German publication relevant for the instrument market, shows annual average yields in a higher single-digit range for the years 2000 to 2008.

Experts are now eagerly anticipating the release of the next edition of this acclaimed instrument price list.

From investor to patron For those buyers who do not just want to invest their capital profitably, but also want to pursue their passion for music and do something culturally meaningful, there is a way to loan the precious instruments to gifted young musicians or already established artists.

The step from entrepreneurial investor to patron is just a small one. “Return” then not only refers to the increase in financial value, but also to an ideological enrichment, growth in empathy and social commitment.

As an investment class, high-class stringed instruments are profitable, lowvolatility investment assets: they uniquely enhance a portfolio. Gamechangers Magazine spoke with Christian Reister, German investment banker turned violin investor and the founder of Violin Assets GmbH, about his career, his passion in musical instruments, and why the investment in such rare material asset offers exciting investment opportunities.

Q. How did you come across 17th/18th century string instruments as a stable, capital profiting investment?

Actually, it seems to be common wisdom that high-class stringed instruments are very valuable goods in general.

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Video: https://vimeo.com/94728169 Your readers may remember the auction in the summer of 2011 where the “Lady Blunt” – a violin made by Antonio Stradivari in 1721 – changed owners for approximately 11 million Euros. This might be the best known example for the investment possibilities for premium stringed instruments from that period.

At Violin Assets we made some analyses to sort out the sustainability of asset performance over the centuries. In Germany, for example, we have a publication called Albert Fuchs’ “Taxe”, which is the standard work describing the financial performance of stringed instruments since 1907, based on collections of the respective market data.

It points towards continuous capital growth.

Interestingly, this is true for high-class stringed instruments not only from the 17th and 18th centuries, but also for high-class instruments built later, even for some contemporary instruments.

Q. How do you consider yourself either a player or collector?

Actually my partner, Jost Thöne, is a violist – “a player”, and his father was a famous German composer. And Jost is one of the world’s leading experts for string instruments. He has been in the business of string instruments for 30 years and, as a publisher, has also released a number of widely acclaimed publications. These include a largeformat publication released in 2010 and 2016, consisting of eight volumes so far, in which Jost documents the work of

Antonio Stradivari. (www.stradivaribooks.com) As for myself, I have been a classical music lover for decades. It is very interesting now to combine my personal interest in music and my professional background in the Private Wealth and Asset Management area.

Q. What other centuries would you invest in?

High-class stringed instruments make attractive investments, from their origin in late 16th century up to the present time. Take the violins, the violas and the cellos of the great master Antonio Stradivari, for example. They were highly appreciated even in his lifetime – we know that the Medici family and the Spanish king ordered instruments from Stradivari. Their increase in value has developed steadily over the centuries.

Nevertheless, there are also other great makers from the past, such as Guarneri del Gesù, G.B. Guadagnini, Guarnerius fiius Andrea, D. Montagnana, T. Balestrieri, to name just a few. But even contemporary masters like L. Salvadori, F. Foto, D. Sora, A. Ciciliati and S. Levaggi are definitely worth a look for investors and patrons.

Q. How would you describe your passion for string instruments?

For us as a company, high-class string instruments are great investments: these instruments are tangible assets, they are mobile goods and they steadily and reliably increase in value over time. We enable our clients to obtain an

exceptional instrument for the purposes of investment; they can then choose simply to have it stored properly or to lend it to musicians who can then play it. I find this fascinating.

Q. What is your true passion?

I love bringing people together. The business of Violin Assets is very exciting as we deal with great personalities, both on the clients’ side and on the musicians’ side.

Q. How did you get into investment private banking and asset management? How did you begin your career?

Well, in Germany it is possible to do a 2-year apprenticeship in banking, which I did in a highly respected private bank some 20 years ago. After my studies in law, I went back into banking, and worked in private banking, also internationally, and in asset management. I think that today I do combine all of my experience in my own company, a great leverage.

Q. What motivated your career change?

Actually, my desire to become selfemployed was a key driver. Since I knew that my experience was a very valuable asset, I kept looking for business models that could fit, and then I met my partner at VIOLIN ASSETS, Jost Thöne, a few years ago. The idea for Violin Assets arose from my first meeting with Jost, who is a highly acclaimed expert for

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ARISE Stradivari instruments and publisher of the great Stradivari books, an amazing encyclopedic work on the master luthier.

Q. Can you name the reason why you chose to invest into musical instrument?

As I continued to meet with Jost, he told me what he knew about the instruments from a dealer’s perspective, and we began to look into the facts and statistics. We found that high-class stringed instruments had always been attractive for investors, as they are valuable right from the beginning. Their increase in value develops steadily over the centuries.

And we realised that in today’s investment scene, these were characteristics that a number of investors must be looking for – but that no one else was offering in the context of high-class stringed instruments. We recognised our unique chance.

By the way, we are talking only about great stringed instruments – only these are suitable for investors because they are able to increase in acoustic quality and value.

Q. What is the most fascinating in this area of investing?

We offer our clients the opportunity to lend their fine instruments long-term to very talented musicians who, being dependent on the perfect sound of an outstanding instrument that suits them well, have applied with us for certain instruments – and it may or may not be surprising to know that the majority of our clients then decide to become patrons. They love the idea that, being an investor, it is easy to become a patron. So we see different aspects of “investment”and “return” at work in this asset class, the benefits of which reach far beyond the investors themselves. For me, this is the most fascinating aspect of our work.

Q. What have been the most memorable moments of your career?

Signing the contract with the client who bought the first instrument from VIOLIN ASSETS some years ago.

Q. What makes a good investor?

Well, in my opinion a good investor makes reasonable and responsible investments. As I’ve already mentioned, I believe a reasonable investment will offer reliability and steady growth,

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with relatively low risk. Responsible investments, as we are seeing more and more, are those that take into account environmental, social and governance factors with the aim of managing risk and generating sustainable, long-term returns.

For the individuals, foundations and companies whom we enable to invest in premium stringed instruments, the aspect of combining investment and patronage is very appealing. While investors naturally benefit from the stability of the investment in the instrument, this decision to become a patron is a fabulous opportunity for them to promote excellence in the form of preserving our society’s cultural heritage and supporting the arts. In my opinion, this is a

ARISE very responsible, very valuable achievement for a reasonable investment.

Q. Who has inspired you?

There are many great men and women‌

Q. What has been the greatest challenge in your career so far?

Deciding to become an entrepreneur and leaving my former employer, the 340-year-old Metzler Bank in Frankfurt, Germany. But it has paid off.

Investors in great string instruments benefit from the fact that these instruments are tangible assets, they are mobile goods and that the appreciation from musicians, collectors and investors grows continuously.

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Q. What valuable lessons have you learned?

Q. What has been a defining moment of your career?

Being brave pays off more often than you think.

Each entrepreneurial success so far has been defining.

Q. What advice would you give yourself if you were starting your career today?

Q. What would you have done if you were not been in finance?

I would give myself two bits of advice: First, “stay hungry, stay foolish” and second, “keep calm and carry on”. Life often plays in between these two.

Maybe I would have ended up in law, but I wouldn’t have made a good stickler, I’m afraid.

Q. What keeps you awake at night?

Nothing.

Q. What is the key to job satisfaction?

Satisfaction is the key, also to job satisfaction.

Q. Who or what comes to your mind when you hear the word “success”?

What do you associate with this word?

Have you read Stephen R. Covey’s “7 Habits”?

Q. Do you have any bugbears?

Q. What do you do to relax?

Listening to very different kinds of music.

Q. What are you proud of?

It has been amazing to establish a sustainable and enriching business that connects investors, instruments and musicians – a proposition that my partner, Jost Thoene, and I created from scratch.

No.

Q. What would you like to achieve in the future?

Q. What do you find most rewarding about your job?

We definitely plan to develop the markets further and help the asset class to get more attention from the public.

Being an entrepreneur gives a lot of satisfaction as the leverage of my work is ultimately higher now than in earlier chapters of my life.

Q. What are the key challenges facing the industry today?

Q. What’s the most extraordinary thing you have seen?

Sometimes the most natural things seem to be most extraordinary: being present when a child is born.

As there are many people wanting to do something reasonable with their wealth who are now discovering the combination of investment and cultural impact, our challenge will be to find these people and make them aware of the great investment opportunities we offer. This will be a great entrepreneurial task. But Violin Assets is in a unique position, and we believe in what we do.

Being brave pays off more often than you think.

Violin Assets, the young enterprise based at Bedburg Castle near Cologne, specialises in the business of high quality stringed instruments. Founded by Christian Reister and Jost Thöne in 2014, Violin Assets connects buyers and sellers and also buyers and musicians. Historical premium instruments make worthwhile investments starting at about 100,000; stringed instruments produced by modern violin makers are suitable starting at about 25,000 to 30,000.

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Philips is the world’s largest patent applicant at the European Patent Office Philips’ position in the European Patent Office (EPO) ranking

3

2

1

2013

2014

2015

Intellectual Property (IP) is a strategic and value-creating business asset for Philips and supports the company’s growth, competitiveness, profitability and creates new business opportunities

Philips manages one of the world’s largest and strongest IP portfolios 2,402 patent applications filed

by Philips at the EPO in 2015

Philips leverages advanced technology and deep clinical and consumer insights, delivering integrated solutions to improve people’s lives

Philips ranks #1 in 3 of the 10 leading technology fields at the EPO: ‘Medical Technology’, ‘Electrical machinery, apparatus, energy’ and ‘Measurement’

Philips’ total IP portfolio consists of 76,000

47,000

91,000

5,000

Patent rights

Trademarks

Design rights

Domain names

March 2016. Patent figures with courtesy of the European Patent Office.

For more information about Philips Intellectual Property and Standards: www.ip.philips.com

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M&A activty post-Brexit: What role can asset based lending have?

The latest figures from Thomson Reuters have defied concerns regarding a drop in M&A activity following the EU referendum vote, with a staggering £72 billion of deals completed so far in Q2 2016. With businesses taking up the opportunity to fund their growth via purchases, how will future transactions of this nature be financed?

At the beginning of the acquisition process, it is crucial for businesses to consider what the best financing options are when the deal is in its initial stages. Each transaction is different, and must be considered on its own merits when looking for funding support. For firms, which aren’t cash-rich but have a number of assets on their balance sheet, accessing the value in these assets could be the key to financing an acquisition.

Putting ABL at the forefront of the business mindset Asset based lending (ABL) is an alternative funding solution that works for a number of stages a company may go through in its corporate lifecycle, a merger or acquisition being just one of these. So why is ABL not usually considered as a viable option from the off in acquisition scenarios?

As its name suggests, ABL is a solution based on the value of any debt-free assets listed on a business’ balance sheet. These range from invoice finance, inventory, plant, machinery and other valuable equipment - all the way through to commercial property. When combined, these assets can be used as collateral to help an organisation improve its cash position and fund the acquisition process, as credit is extended against the items’ value. In addition, asset-based funding provides working capital for the new, larger organisation once the transaction has been completed, helping the business post-transaction as well as during the buying process.

SMEs and M&A Funding M&A activity is not just about the cost of the deal itself or the long-term possibilities for increased

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synergies, growth and profits. The short-term cashflow, which keeps client activity running through this process, is vital too. By releasing the value of the assets within a business in the form of credit, ABL can help to stabilise a firm’s cashflow in the short-term in order to finance an acquisition in the longer term.

Similarly, for a newer organisation or a spin-off from a larger company, there may not be the cash history present in the business’ books to support a nonsecuritised loan. However, the assets held within the business could in fact be enough to back up the loan.

Also, many businesses hold the belief that asset-based lending could not offer a large enough sum to fund M&A transactions, but this is often not the case. If required, an additional cash loan can be offered on top of the value of a business’ assets to further increase the sum available to part-fund the deal.

acquisition, and these traditional lenders may also be unwilling to support this activity. In contrast, ABL provides a more suitable option for firms without a great sum of cash on their books, or for smaller enterprises where cashflow levels are more prone to fluctuation.

Asset based lending can be a favourable alternative for industrial sectors such as manufacturing, which could benefit most from this type of solution given the large amount of plant and machinery locked up within a business. This more specialised offering works in a business’ favour, as ABL providers can offer advice on how to maximise the liquidity of any items on their balance sheet, as well as minimising the risks of the deal’s execution.

Comparing ABL to traditional funding

By its very nature, ABL is flexible enough to cope with the transitional requirements of a business going through a merger or acquisition process. A majority of acquisition deals experience unforeseen problems, particularly in the initial stages.

A traditional lender will look at the cashflow within a business as the first port of call, and then later to its collateral. In many cases, getting a loan from a mainstream bank can be a drawn-out process for SME businesses in particular looking to finance an

However, the focus on assets offered

by ABL providers means that these solutions are better able to accommodate these temporary hitches along the road. If you’re thinking about an acquisition – you should be thinking about asset-based lending.

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John Nelson, Managing Director (ABL), IGF Group

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Avoiding immigration issues in due diligence: lessons to be learnt from Byron Burger

By Kerry Garcia, Partner and Head of Immigration at Stevens & Bolton LLP

It seems immigration is never far from the headlines. The recent Byron Burger controversies not only highlight the importance of having the right procedures in place to ensure employees have the right to work in the UK, but also reminds buyers and investors of the importance of carrying out due diligence on a target company’s immigration compliance and right to work check procedures.

There is often little attention paid to immigration matters during M&A and PE investments. However, there are potentially significant financial and reputational risks to buyers of, or investors in, a target company that does not comply with

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immigration legislation. Carrying out appropriate due diligence is recommended to determine any compliance issues and, where possible, rectify these prior to acquisition or investment.

Potential risks Financial penalties – UK Visas and Immigration (UKVI) may issue civil penalties up to £20,000 per employee found to be working illegally. Employers will have a defence if they can demonstrate right to work checks were carried out before the individual’s employment began. Civil penalties apply even if the employer was unaware that the person did not have the right to work. .

ARISE Criminal sanctions – It is a criminal offence to employ an individual knowing, or with “reasonable cause to believe”, they do not have the right to work in the UK. This carries a maximum sentence of five years in prison.

made within 20 working days of the acquisition. Share sales resulting in change of control may lead to the target company’s sponsorship licence being revoked and they may need to apply for a new one or arrange to be covered by the buyer’s licence

Effect on sponsor licence – Many employers have a sponsor licence and this is often essential when employing non-EEA nationals. Sponsor licences may be downgraded, suspended or revoked in the event of a civil penalty or immigration offence, which could prevent further sponsorship and employment of nonEEA nationals.

• Checking who the Key Personnel are in relation to the sponsor licence and whether their employment will continue post acquisition, or whether new staff members

Reputation – The UKVI publicly names and shames companies issued with civil penalties, potentially affecting that company’s reputation. However, the bad publicity Byron Burger received shows businesses have the difficulty of finding a balance between meeting their legal obligations whilst maintaining good employee relations. In most cases, meeting legal obligations will take precedence given the onerous consequences of failing to do so.

What can business learn from Byron?

From an immigration perspective, Byron acted entirely appropriately. We understand that the correct right to work checks were carried out, but unknowingly Byron had been shown fraudulent documentation. Byron were therefore not liable to pay any civil penalties and did not face any criminal action. Despite this, the company was criticised for arranging a meeting with employees where immigration officers arrested attendees. Arguably though Byron had little choice as employers are required to co-operate with UKVI and immigration legislation is now so strict that employers are forced to take a tough stance when it comes to the prevention of illegal working.

What should buyers / investors consider?

Immigration due diligence should include: • Gathering details about the target’s workforce and whether it employs non-EEA nationals. Higher risk businesses often have a high turnover of low paid staff, such as those in catering and hospitality, care and IT. Smaller business with little HR support or those with a number of different offices which all operate with minor support also increase the immigration risks.

• Obtaining details of the immigration status of all non-EEA nationals • Checking if the target is covered by a sponsor licence • Investigating any sponsor compliance issues and the effect of the acquisition on the sponsor licence. For example, if there is an asset purchase Tier 2 sponsored employees need to transfer to the buyer’s sponsor licence. If they do not have one an application must be need to be appointed • Requesting information about the right to work check procedures

Buyers or investors should also: • Insist upon warranties in the share or asset purchase agreement that all employees have the right to work in the UK, the employer has carried out right to work checks and, if applicable, has complied with its sponsor obligations • Consider asking for indemnities to address any specific concerns regarding breach of immigration legislation • For an asset purchase resulting in employees transferring under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE), it is advisable buyers carry out their own right to work checks within 60 days of the transfer as this is the only way the buyer will have a statutory excuse if a civil penalty is issued in the case of a TUE transfer • For a share purchase, the employer remains the same and the business may rely on previous right to work checks.

However, buyers should consider carrying out their own checks post-completion to flush out any individuals in breach • Put in place procedures to ensure ongoing right to work checks • Ensure all appropriate sponsor licence notifications are made post completion. These could include changes to the corporate structure, changes to premises or Key Personnel or Tier 2 employees leaving

Overall, businesses are strongly advised to: • Train all managers on the correct procedure for right to work checks – these must be undertaken before an employee starts work and correct signed/dated copies must be kept. If the employee has limited leave to remain, these checks must be carried out again upon expiry of the leave to remain • Take prompt action if they suspect any breach of the right to work in the UK, seeking legal advice. Even a suspicion could trigger criminal liability • Ensure immigration and right to work processes are audited regularly • Obtain legal advice in relation to employees’ immigration applications • For those with a sponsor licence, ensure ‘Key Personnel’ are aware of their duties and keep the Home Office updated regarding changes of personnel and to the business, such as office locations/overseas companies.

125 Gamechangers

€2 billion new fund closed €1.9 billion exit proceeds €612 million invested Demonstrating why we’re one of Europe’s most active lower mid-market investors In 2015, Equistone closed a new €2bn fund, returned €1.9bn to investors as a result of 11 successful exits and committed €612m in eight new investments across France, Germany and the UK. Equistone will continue to source deals and build value with management teams in 2016. www.equistonepe.com Birmingham | London | Manchester | Munich | Paris | Zurich

© 2016 Equistone Partners Europe Limited. Authorised and regulated by the Financial Conduct Authority.

REPORTS A PRESENTATION OF FACTS OR FINDINGS

128.

142.

144.

ESMA PUBLISHES FURTHER ADVICE ON THE APPLICATION OF THE AIFMD PASSPORT FOR NON - EU JURISDICTIONS

GLOBAL M&A ACTIVITY DECLINES IN THE FIRST HALF OF 2016

141.

AUTOMOTIVE M&A ACTIVITY: Q2 2015 - Q2 2016

BAIRD

DECHERT LLP

BUREAU VAW DIJK

143.

BAIRD REPORT & VIDEO HIGHLIGHTS EUROPEAN HEALTHCARE M&A TRENDS

CLEARWATER

Bircham Dyson Bell

UK ENTREPRENEURS GIVE THEIR VIEW ON POST-BREXIT PROSPECTS

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UK Entrepreneurs give their view on post-Brexit prospects More than half (51%) of entrepreneurs surveyed fear that Brexit will have a negative impact on their business

Leading London law firm Bircham Dyson Bell today reveals the findings of its first Entrepreneur’s Optimism Index (The Index) since the EU Referendum result, showing that small business owners and entrepreneurs – the lifeblood of this country’s economy – are concerned about the post-Brexit landscape.

The Index, published quarterly and supported by Rockstar Mentoring Group, tracks the opinions and levels of optimism amongst entrepreneurs in the UK. The Index surveys nearly one hundred businesses on key issues focussing on what Brexit means for entrepreneurs and the opportunities and challenges they see on the road ahead.

This quarter’s Index found: • Only 9% of entrepreneurs think that Brexit will have a positive impact; • Just under half of those surveyed (45%) worry that Brexit will lead to a period of uncertainty which will in turn cause a reduction in client demand; • With the fall in sterling, 20% are concerned that it will make importing goods or services more difficult and / or expensive.

However, more positively: • Only 9 % thought Brexit would make raising finances more difficult; • There is a significant number (40%) who are keeping cool, calm and collected and are neutral about the impact Brexit will have on their business; • 16% of the survey’s respondents thought it would bring a greater degree of workforce flexibility by reducing EU related employment legislation; • Moreover in respect of global talent, the same number of entrepreneurs (16%) believed that Brexit will remove the limits on non-EU immigration – making it easier to recruit skilled workers from outside the EU. Commenting on the findings, Hollie Gallagher, Head of the Entrepreneurs Team at Bircham Dyson Bell said: “The Entrepreneurs Optimism Index shows that despite entrepreneurs having real concerns over what Brexit will mean for their businesses they are also seeing enterprising opportunities on the horizon. This is evidenced by almost three quarters (69%) feeling confident to start a new business in the current economic climate and the increased potential to bring in skilled non-EU immigrants – a key issue for many entrepreneurs.”

Stuart Thomson, Head of Public Affairs at Bircham Dyson Bell, commented on the views of the entrepreneurs: “Despite the political uncertainty, entrepreneurs, a nimble and creative section of the business community, are alive to new possibilities. The Government will be keen to ensure that they are addressing the apprehensions of this integral part of the British economy and we will wait with baited breath to see the policies and initiatives put forward by the newly created Department for Business, Energy and Industrial Strategy.”

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ENTREPRENEURS OPTIMISM INDEX A quarterly review of the highs and lows from the UK’s leading entrepreneurs Edition 4 | A Brexit Special 129 Gamechangers

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This publication is not meant as a substitute for advice on particular issues and action should not be taken on the basis of the information in this document alone.

This firm is not authorised by the Financial Conduct Authority (the FCA). However, we are included on the register maintained by the FCA (www.fca.gov.uk/register) so that we can offer a limited range of investment services (including insurance mediation activities) because we are authorised and regulated by the Solicitors Regulation Authority (the SRA). We can provide these services if they are an incidental part of the professional services we have been engaged to provide. Mechanisms for complaints and redress if something goes wrong are provided through the SRA and the Legal Ombudsman.

Gamechangers 130

Bircham Dyson Bell LLP processes your personal data in connection with the operation and marketing of a legal practice and will occasionally send you information relating to the firm. If you would prefer not to receive this information or would like us to amend your contact details and/or mailing preferences, please notify us by email: databasecoordinator@bdb-law.co.uk.

Bircham Dyson Bell LLP is a member of Lexwork International, an association of independent law firms. www.lexwork.net.

Printed on sustainable paper.

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ENTREPRENEURS GETTING BREX-FIT! There has been fevered debate about the practical implications of Brexit since the results were announced in the early hours of 24 June. The uncertainty of what will happen next both politically and economically has caused some concern, but what do small business owners and entrepreneurs – the lifeblood of this country’s economy – think? Are they concerned or are they feeling their entrepreneurial spirit and identifying potential opportunities? In this quarter’s Entrepreneurs Optimism Index we asked our surveyed readers what a Brexit means for entrepreneurs and the opportunities and challenges they see on the road ahead.

Perhaps unsurprisingly, given the inevitable uncertainty over the terms of Brexit, more than half (55%) of entrepreneurs surveyed felt that a Brexit would have a negative impact on their business. This is in stark contrast

to the 11% who thought it would be positive. There are also a significant group (45%) who are keeping cool and are neutral about the impact Brexit will have on their business.

Digging down into what they fear are the negative impacts, just under half of those surveyed (45%) worry that it will lead to a period of uncertainty which will in turn cause a reduction in client demand. With the fall in sterling, 20% are concerned that it will make importing goods or services more difficult and / or expensive.

More positively, only 9% thought it would make raising finances more difficult. Funding is crucial for setting up and growing businesses and the Government will be keen to plug any funding gap for businesses left by Brexit. Furthermore, 16% thought it would bring a greater degree of workforce flexibility by reducing EU

related employment legislation. In respect of global talent, the same number of entrepreneurs believed that Brexit will remove the limits on non-EU immigration – making it easier to recruit skilled workers from outside the EU. The Index shows that despite entrepreneurs having real concerns over what Brexit will mean for their businesses they are also seeing enterprising opportunities on the horizon. This is evidenced by almost three quarters (69%) feeling confident starting a new business in the current economic climate. One thing that is for certain is that this nimble and creative section of the business community will be alive to new possibilities and the Government will be keen to ensure that they are addressing the apprehensions of this integral part of the British economy.

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A POLITICAL PERSPECTIVE – THE HARD WORK STARTS HERE The outcome of the Referendum on the UK membership of the EU came as a shock to many, not least to those who supported Brexit. The business community, in particular, fought hard to remain part of the EU and the single market that comes with membership.

“

...the challenge now comes for both businesses and Government in having no choice but to make the best of the situation.

”

Stuart Thomson, Head of Public Affairs, BDB

Not that support was wholly universal, especially amongst small and medium-sized businesses, but the fears of what might happen in the event of Brexit appeared to dominate the thoughts of many. For others, ‘Project Fear’ was simply a campaigning tool, and the question on everyone’s minds is now whether those fears will come to pass.

For many, such as those we talked to before the event, there were real concerns over the implications of withdrawal and a failure to see any benefits from a life outside the EU. The challenge now comes for both businesses and Government in making the best of the situation.

There is a lack of clarity over how the withdrawal process will work and what the timings will be. It will be the responsibility of Theresa May to make many of these decisions.

But businesses can take some control, and it should not all be left to the

politicians. Ideas need to be given, and the Government too are struggling with what to do and how to do it. A unit has been established in the Cabinet Office to help plan and deliver the withdrawal but they are starting with, whatever people may say, a blank sheet of paper.

With the civil service having been cut back in recent years, there are fewer people to deal with the withdrawal process and particularly a lack of negotiators. These are not skills that have been needed in recent years and, it could be argued, given the lack of time that UK civil servants have spent in the EU institutions, they do not have a depth of understanding and knowledge needed to deal effectively with the withdrawal process, and that makes the voice of businesses even more important to bring to the table.

So there is a need for political engagement to help ensure that the shape of the UK’s future fits in with the needs of businesses, particularly

Index statistics

44%

aged 25-44

2 Gamechangers 132

56% aged 45+

45% start-ups

55%

serial entrepreneurs

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“

With the civil service having been cut back in recent years, there are fewer people to deal with the withdrawal process and particularly a lack of negotiators.

”

Stuart Thomson, Head of Public Affairs, BDB

where it comes to exporting and importing, both issues which the Index highlighted as being a concern amongst entrepreneurs.

There are existing resources and campaigns out there and more support could well emerge – that also means utilising those resources and being alive to any new opportunities. For instance, the 'Exporting is Great' campaign, led by UKTI, is now of even more importance to understand new funding opportunities that may be

introduced and monitoring what the Government is saying and doing. These opportunities may not just come from the public sector, changes are already being made in the banking sector to help release finance. The more relationships that can be established and protected in advance of the UK’s eventual withdrawal, the better.

Some have suggested that Brexit may not even happen but that looks highly unlikely, and for businesses to plan on that basis would be bordering on the negligent. Instead, entrepreneurs and all businesses need to get ahead of the curve before ‘Exit Day’ so that they minimise the potential for shock and maximise the potential for opportunity.

They are, after all, resilient and creative at the best of times.

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2016 PARLIAMENTARY SNAPSHOT In 2015, the greatest political concern was the manner in which Labour leader Ed Miliband ate his bacon sandwich; this year, England getting knocked out of Euro 2016 was demoted to the fourth most important story of the day, as markets and political leaders collapsed. The apocryphal Chinese curse ‘may you live in interesting times’ has never felt so apt.

Philip Salter (Director of The Entrepreneurs Network) www.tenentrepreneurs.org T 07919 355290 E philip@tenentrepreneurs.org @Philip_Salter

Perhaps we shouldn't be too surprised that the majority of the public voted to leave. After all, our annual survey of MPs – the Parliamentary Snapshot 2016 – which we undertake with Bircham Dyson Bell and YouGov showed that 70% of Conservative MPs thought leaving the European Union (EU) would be good for entrepreneurs.

If the people in power in Westminster are sceptical of the EU, it's perhaps not all that surprising that a labourer in Sunderland isn’t enamoured with Brussels.

My impression is that entrepreneurs were as surprised by the result as the rest of the country. But after the initial shock, entrepreneurs have come out fighting. They have businesses to run and refuse to talk the country into a recession.

Yet entrepreneurs are clearly concerned about what this means in practice for their business. I doubt many will be shedding too many tears over the loss of political union, though many care deeply about their ability to do business across the continent – the freedom of goods, capital and people.

Immigration is an emotive issue.

Although the Referendum wasn't actually a vote on immigration, the Vote Leave campaign ran on a platform that means people now believe we need to stop the free movement of people into Britain – which in turn threatens our access to the Single Market.

Returning to our Parliamentary Snapshot, some interesting findings emerge. Although 70% of Conservative MPs think entrepreneurial activity

4 Gamechangers 134

would improve if the UK left the EU, and 88% think British entrepreneurs would benefit from us being exempt from EU business regulation, 86% of Conservative MPs support foreign entrepreneurs moving to UK, and more than half, 58%, want it to be easier to hire skilled workers from abroad – a support that has grown 18% on last year despite of the Referendum debates.

In other words, despite the rhetoric you are hearing, MPs in the governing party understand the importance of keeping the door open to talent.

Whether this leads to us getting a Norway style EEA option or an Australian style point system, I think we can take some comfort in the fact that the Conservative Party isn’t made up of too many Little Englanders.

As to be expected, the vast majority of Labour MPs, 97%, thought that leaving the EU would have a negative impact on entrepreneurial activity in the UK. And a large proportion, 84%, thought that allowing easier movement of entrepreneurs to the UK would be a positive thing. Also, two thirds, 66%, of Labour MPs supported the idea of making it easier to hire skilled workers from abroad. This is more good news – Labour MPs aren’t so focused on defending the rights of UK workers that they aren’t open to the benefits that come from foreign entrepreneurs and workers.

Perhaps all this shows a disconnect between our political class and the man and woman on the street, but I’m still optimistic that post-Brexit there is a way of navigating these differences.

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“

...after the initial shock, entrepreneurs have come out fighting. They have businesses to run and refuse to talk the country into a recession.

”

Philip Salter, Director of The Entrepreneurs Network

The fact is, the freer movement of people, goods and capital benefits everyone – particularly when you factor in the benefits that accrue to us all as consumers of their goods and them as consumers of ours.

And the evidence suggests that immigration isn’t the overriding issue for most of the country. Lord Ashcroft polled the public just after the Referendum to find out why people voted to leave. He found nearly half (49%) of leave voters said the biggest single reason for wanting to leave the EU was ‘the principle that decisions about the UK should be taken in the UK’. While just one third (33%) said the main reason was that leaving ‘offered the best chance for the UK to regain control over immigration and its own borders.’

Similarly, polling by YouGov, commissioned by the Adam Smith Institute before the Referendum, found that voters would support the EEA option 54% to 25%, even if it meant retaining freedom of movement.

I'm sure immigration is a concern for a significant minority, but I don’t think it needs to be the linchpin upon which we move forward. Perhaps it would take a brave leader to come out for EAA as an option, but shouldn't bravery be a characteristic we look for in a leader?

Putting aside the issue of Brexit (if it's possible), the aforementioned Parliamentary Snapshot also found that our MPs could do with knowing a bit more about the policies in place to support entrepreneurs – particularly the tax breaks.

We asked MPs which initiatives are successful at supporting entrepreneurs. The most popular were business rate relief (87% thought this was effective), Enterprise Zones (82%), the Regional Growth Fund (75%), Start Up Loans (72%) and the Employment Allowance (66%). In contrast, some policies are remarkably unknown.

More MPs have never heard of key polices such as the Enterprise Investment Scheme, Entrepreneurs’ Relief and the British Business Bank than think they're effective.

Parliamentary Snapshot 2016

We will work to inform the debate, the government and MPs in the House of Commons about what they are already doing, about what entrepreneurs want and need from their policies, and about what works. Let’s hope things become a little less interesting soon. I much prefer the stability of analysing the eating habits of our politicians than watching Game of Thrones made real.

5 135 Gamechangers

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MY LIFE AS AN ENTREPRENEUR MY LIFE AS AN ENTREPRENEUR

Entrepreneur, full time Marketing Director at VanillaIP and co-founder of Kakapo Systems, Steve Tutt, isn’t short of drive and creativity. Winner of the 2015 Internet Telephony Product of the Year Award, Kakapo Systems now Entrepreneur, full time MarketingStarting Directorwith at VanillaIP and co-founder of Kakapo Systems, Steve Tutt, celebrates ten years in business. two brothers in the UK, this software development firm isn’t now short boastsof drive and creativity.

Winner of the 2015 Internet Telephony Product of the Year Award, Kakapo Systems now an array of large US and European clients. Steve talks to BDB about his life as an entrepreneur: celebrates ten years in business. Starting with two brothers in the UK, this software development firm now boasts an array of large US and European clients.

Steve to BDB about life as an entrepreneur: opportunity ten years ago when we set WHAT WAStalks IT THAT MADE YOU his DECIDE up the company. We had first-mover TO SET UP YOUR OWN BUSINESS? opportunity ten years agowe when we set WAS IT THATand MADE YOU DECIDE advantage but everything do now is I WHAT studied Marketing Commercial up the company.

We had first-mover TO SET UP YOUR OWN BUSINESS? about speed-to-market, product law at Victoria University and (like advantage everything we do now is I studied Marketing refresh and but continual innovation. most) I used to skip aand fewCommercial lectures about speed-to-market, product law at Victoria (like here and there, University especially and the less refresh continual innovation. most) I used to skip a few lectures WHO HASand BEEN INVOLVED IN THE exciting ones. However, I remember here and there, especially the less during my third year marketing course BUSINESS? WHO HAS BEEN INVOLVED THE exciting However, I remember We started out with me andINmy that everyones.

Thursday the lecture was BUSINESS? during year marketing course brother Chris. We worked together taken upmy bythird a guest speaker.

There started with mehe’s and amy that every Thursday the lecture was inWe the past inout telecoms; were some amazing and engaging brother Chris.

We in worked together taken up who by a talked guest speaker.

There developer and I’m marketing so speakers through their in the past in telecoms; he’s a were some amazing and engaging we complement each other well. experiences. There was one in developer and balance I’m in marketing speakers who through their There’s a good between so us. particular, a guytalked who setup a company we complement each other well. experiences.

There was one in called Seaworks which involved laying We now have three UK staff and have There’san a good balanceinbetween us.14 particular, a guy setup company opened R&D facility India with marine cables.

Hewho didn’t evena have a Steve Tutt (Marketing Director, and We now have three UK staff and have called Seaworks which involved laying developers. We obviously have the odd boat or some of the equipment, but Co-founder of Kakapo Systems) opened an R&D facility India with 14 marine cables.

He didn’t even have a disagreement, me beinginthe marketing ended up getting his first deal with Steve Tutt (Marketing Director, and www.kakaposystems.com developers.

We obviously have the odd boat or to some of the equipment, Erikson lay undersea cable. Hebut was guy I often have a number of ideas Co-founder of Kakapo Systems) T +44 (0)20 8588 0330 disagreement, me with beinghis thepractical marketing ended up getting his deal with which may conflict truly inspirational andfirst I remember Ewww.kakaposystems.com tellmemore@kakaposystems.com guy I often have a number of ideas Erikson to lay undersea cable.

He was thoughts. We can have different ways him saying ‘everybody gets a good T +44 (0)20 8588 0330 which may conflict with his practical truly inspirational and I remember of thinking, but it still works. idea at some point but the difference E tellmemore@kakaposystems.com thoughts. We can have different ways saying ‘everybody a good ishim most people don’t do gets anything with of thinking, it still works. sometake pointthe butgamble’. the difference HOW DID YOUbut INITIALLY FUND THE it,idea theyatnever At that is most people don’t do anything with BUSINESS AS A START-UP? point my eyes were opened.

YOU INITIALLY FUNDhad THE it, they never take the gamble’. At that ItHOW wasDID all self-funded.

We’ve BUSINESS AS A START-UP? I point don’t my think you just decide that you eyes were opened. people in the past enquire whether It was self-funded.

We’ve had want to be an entrepreneur, it’s one of they canalltake a stake but we’re not I don’t think you just decide that you people in the past enquire whether those things that just happens, but the interested in looking for partnerships. want to be one key thing is an thatentrepreneur, you’ve got toit’s have anof they can take a stake but we’re not those things that just happens, but interested looking for partnerships. idea that you think is good enough tothe DO YOU FEELinAS AN ENTREPRENEUR key thing is that take the risk on. you’ve got to have an THERE’S NEVER REALLY AN END TO idea that you think is good enough to DO YOU FEEL ASFOR AN ENTREPRENEUR YOUR APPETITE BUSINESS? takeDID the YOU risk CONVINCE on.

THERE’S NEVER REALLY ANtoEND TOit HOW YOURSELF You have to be committed make YOURRunning APPETITEyour FORown BUSINESS? THAT IT WAS WORTH THE RISK AND work. business is HOW DID YOU CONVINCE YOURSELF You have to be committed to make it WORTH DOING? not a 9-5 job.

It’s fun for us, and when THAT IThappens WAS WORTH THE RISKand ANDany work. Running your own business is Nothing in a vacuum you can actually see your products WORTH notthere a 9-5and job. people It’s funusing for us,them, and when good ideaDOING? is only suitable for a certain out you Nothing happens in a vacuum and any you can actually see your products time. We saw an opportunity within see the result of what you’re good ideatelecoms is only suitable for a certain can out there people using them, telecoms, software doing, it’s aand good feeling to see thatyou time. We saw anthe opportunity within can see the result of what you’re specifically, and behavioural from start to finish. telecoms,that telecoms software problems we could solve for many doing, it’s a good feeling to see that specifically, and the behavioural from start to finish. organisations.

Timing was extremely problems that we could solve important, and lucky for us we for sawmany the organisations. Timing was extremely important, and lucky for us we saw the

6 6

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“

I don’t think you just decide that you want to be an entrepreneur, it’s one of those things that just happens, but the key thing is that you’ve got to have an idea that you think is good enough to take the risk on.

”

Steve Tutt, Marketing Director, Kakapo Systems

Nanna Bryndís Hilmarsdóttir, lead singer of 'Of Monsters and Men' helping out with the Unicef Iceland telethon where Kakapo provided the telecoms software.

WITH BREXIT IN MIND, IS THE UK A GOOD PLACE FOR YOU TO BE LOCATED? Most of our customers are based in the US and a few in Europe. We could have been anywhere to be honest; we love London, but from a business point of view it wouldn’t have made a difference.

It’s obviously a worry that the economy could face another recession but it won’t really affect our business as we only have one UK customer so there’s not a lot of risk for us. Any softening of the pound impacts us because we pay our Research and Development fees in Rupees so the exchange rate would differ, but again it’s not going to have a massive impact on us.

WOULD YOU CHANGE ANYTHING NOW, AND IF SO WHAT ADVICE WOULD YOU GIVE YOUR YOUNGER SELF? No we wouldn’t change anything, we have a great product which we aim to preserve. Our software works with cloud communications systems, and this sort of technology was taking off globally when we launched so being early-to-market really helped us make our mark.

One piece of advice I would give would have been to get something out to market sooner. You can spend forever trying to make something perfect, and then lose time out on that first-mover advantage. Getting your concept out first is crucial and even though we were first out, we could have launched our product even sooner. The second piece of advice would probably be to not sell too cheap, it’s a lot harder to put the price up than it is to put the price down – something you learn in practice.

IN FIVE-TEN YEARS’ TIME WHERE DO YOU SEE THE BUSINESS GOING? It would be great to diversify and develop cross platform software, but overall we just want to keep doing more of the same and develop more apps to compete against the larger telecomm firms like Cisco and Verizon. We never saw ourselves working with the large, multi-office organisations though; we’ve been more successful developing our relationships with smaller more nimble organisations that have less barriers, and you can work with the decision-makers direct.

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AN ENTREPRENEURS VIEW ON BREXIT WHAT IMPACT HAS BREXIT HAD ON YOUR BUSINESS? Negative

Neutral

Positive 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

30 DAYS OF BREXIT voted to remain

51.9% voted to leave

28%

1.2 million Bregretters

Property prices expected to decline

20% 7 Second

May’s cabinet members:

Brexit protestors

10% 50%+ falls

increase in hate crimes

support Brexit

16

£200

support Remain

increase for an average family holiday

shadow ministers resign

sign petition for second referendum

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female UK Prime Minister appointed

172

Labour MPs vote no confidence in Corbyn

Campaigners raise

42 4,000,000+

turnout for the EU referendum vote

wiped off the world’s stock market 24 hours after the referendum

Welsh voters would support independence to remain in the EU

20,000+

72%

$2,000,000,000,000

48.1%

£27,000 700,000 to prosecute Vote Leave politicians

fewer jobs advertised online

43%

think it’s unlikely the UK will remain in the single market

82%

new cabinet with

100,000 new Labour members

30%

female

15,000 new Lib Dem members

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WHAT DO YOU THINK THE NEGATIVE BENEFITS OF BREXIT MIGHT BE TO YOUR BUSINESS?

9%

It will make raising finance more difficult

10%

The reduced immigration into the UK will make recruitment more difficult

16%

It will decrease opportunities for exporting my goods / services

45%

It will lead to a period of uncertainty that will cause a reduction in client demand

25%

There will be no negative impacts

20%

It will make importing goods / services more difficult and / or expensive

WHAT DO YOU THINK THE POSITIVE BENEFITS OF BREXIT MIGHT BE TO YOUR BUSINESS?

6%

It will make importing goods / services easier and / or cheaper

10%

It will reduce burdensome trade regulations

16%

It will remove the limits on non-EU immigration making it easier to recruit skilled workers from outside the EU

55%

There will be no positive benefits

16%

It will bring a greater degree of flexibility to workforce management by reducing EU-based employment legislation

10%

It will increase opportunities for exporting my goods / services

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MORE INFORMATION / CONTACT DETAILS Hollie Gallagher, Head of Entrepreneurs Team, BDB E holliegallagher@bdb-law.co.uk T +44 (0)20 7783 3520 www.bdb-law.co.uk Stuart Thomson, Head of Public Affairs, BDB E stuartthomson@bdb-law.co.uk T +44 (0)20 7783 3439 www.bdb-law.co.uk Toby Richards-Carpenter, Associate, BDB E tobyrichards-carpenter@bdb-law.co.uk T +44 (0)20 7783 3759 www.bdb-law.co.uk Jonathan Pfahl, Managing Director, Rockstar Mentoring Group E jonathan@rockstargroup.co.uk T +44 (0)8456522905 www.rockstargroup.co.uk

© Bircham Dyson Bell LLP 2016 50 Broadway London SW1H 0BL T +44 (0)20 7227 7000 www.bdb-law.co.uk

FIND US ON Gamechangers 140

#jointhereef

www.jointhereef.co.uk

thereef@bdb-law.co.uk

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Automotive M&A Activity: Q2 2015 - Q2 2016 NEWS

LETTER

Automotive

M&A AND FINANCIAL MARKET STATISTICS IN THE AUTOMOTIVE INDUSTRY

M&A Activity – Quarterly Comparison Q2 2015 – Q2 2016

Summary In Q2 2016, aggregate deal count and deal value in the global automotive sector increased by 32% and 61%, respectively, compared to the previous quarter.

88 51

16,699

In comparison to the previous quarter, the average automotive sector valuation levels declined moderately: EV/Sales: (minus 14.3%), EV/EBITDA: (minus 7.4%), EV/EBIT: (minus 7.3%).

This development was, among others, driven by the mainly European-related decrease in valuation levels.

The highest valuation levels can be observed in the Engineering and Controls / Electronics subsegments, in particular driven by the macro-trends of autonomous driving, connectivity and electrification.

79 60

66

4,665

Q2'15

Q3'15

5,356

6,503

Q4'15

Q1'16

Aggregate Deal Value in €m

10,485

Q2'16

Number of Deals

Top M&A Deals Q2 2016

Freudenberg SE has reached an agreement with its joint venture partner Trelleborg AB to acquire its 50% shareholding in the joint venture company Vibracoustic GmbH, a company engaged in automotive antivibration activities, to become a global and market technology leader in vibration control components and modules in the automotive industry (EV: € 1,800m)

Valeo SA has agreed to acquire FTE automotive GmbH, a manufacturer and developer of drive train and brake system applications for the automotive industry, to expand its customer and product portfolio as well as strengthen Valeo’s aftermarket business (EV: € 819m)

Plastic Omnium has agreed to acquire the automotive exteriors business of Faurecia SA, a company engaged in the manufacturing of bumpers and front-end modules, to accelerate its ongoing globalisation and thereby enable it to better serve customers around the world (EV: €665m) Selected Recent Global Automotive Bond Issuances Q2 2016

Company

Date of Issuance 01/04/2016

Amount (in €m) 700.0

Coupon

Faurecia

3.625%

Yield (Latest) 3.380%

Price (Latest) 101.500

Maturity Date 15/06/2023

Daimler

07/04/2016

370.9

2.125%

1.563%

103.144

07/06/2022

Kia Motors

14/04/2016

355.4

2.625%

1.913%

103.247

21/04/2021

Peugeot

15/04/2016

500.0

2.375%

1.925%

102.820

14/04/2023

Goodyear

10/05/2016

790.2

5.000%

4.654%

102.250

31/05/2026

Daimler

11/05/2016

1,250.0

0.250%

(0.031%)

101.079

11/05/2020

CLEARWATER INTERNATIONAL Source: Capital IQ, Mergermarket, Clearwater Research

1

In Q2 2016, aggregate deal count and deal value in the global automotive sector increased by 32% and 61%, respectively, compared to the previous quarter.

In contrast, the average automotive sector valuation levels declined moderately: EV/Sales (minus 14.3%), EV/EBITDA (minus 7.4%), EV/EBIT (minus 7.3%). This development was, among other reasons, driven by the mainly European-related decrease in valuation levels.

The highest valuation levels were seen in the Engineering and Controls/Electronics sub-segments, in particular driven by the macro-trends of autonomous driving, connectivity and electrification.

Top M&A deals Q2 2016 Freudenberg SE has reached an agreement with its joint venture partner Trelleborg AB to acquire its 50% shareholding in the joint venture company Vibracoustic GmbH, a company engaged in automotive antivibration activities, to become a global and market technology leader in vibration control components and modules in the automotive industry (EV:1,800m).

Valeo SA has agreed to acquire FTE automotive GmbH, a manufacturer and developer of drive train and brake system applications for the automotive industry, to expand its customer and product portfolio as well as strengthen Valeo’s aftermarket business (EV: 819m) Plastic Omnium has agreed to acquire the automotive exteriors business of Faurecia SA, a company engaged in the manufacturing of bumpers and front-end modules, to accelerate its ongoing globalisation and thereby enable it to better serve customers around the world (EV: 665m).

Report: https://goo.gl/vsFq8w

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ESMA Publishes Further Advice on the Application of the AIFMD Passport for Non-EU Jurisdictions

ESMA Publishes Further Advice on the Application of the AIFMD Passport for Non-EU Jurisdictions A Legal Update from Dechert’s Financial Services Practice August 2016

The European Securities and Markets Authority (“ESMA”) published further advice to the European Parliament, Council and Commission on the extension of the AIFMD passport for non-EU jurisdictions on 18 July 2016.

Key Points • No significant obstacles impede the application of the passport to Canada, Guernsey, Hong Kong, Japan, Jersey, Singapore or Switzerland; • Market disruption and competition are seen to be obstacles to extending the AIFMD passport to the United States, though ESMA has suggested three options that could modify the application of the AIFMD passport to certain types of funds to overcome these; • Investor protection is seen to be an obstacle for both Bermuda and the Cayman Islands, although this is mainly due to the legislative changes that will create an AIFMD compatible regime in these countries not yet being in force.

The decision on whether to extend the passport rests with the European Commission, subject to the right of the European Parliament and European Council to raise objections. The AIFMD envisages a three month period after the date of ESMA’s advice for the European Commission to consider that advice and adopt any delegated act extending the passport, and this delegated act will set the effective date for the extension. The European Parliament and Council then have up to six months to object. It is therefore currently unclear whether the AIFMD passport will be extended for any of the jurisdictions considered by ESMA, and if so, when the extension would be effective.

If the AIFMD passport were implemented in line with ESMA’s advice, it could pave the way for the passport to be extended to the UK after it leaves the EU.

Report: https://goo.gl/xrIrDB

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Baird report & video highlights European healthcare M&A trends [DRAFT as of 25 Feb]

M&A Market Analysis H2 2016

European Healthcare M&A Trends Underlying sector drivers and perspectives from the middle-market

Rob Andrews Managing Director Medical Technology randrews@rwbaird.com +1.312.609.5489

Ben Brown Managing Director Healthcare IT & Services bbrown@rwbaird.com +1.414.298.7013

Ryan Mausehund Managing Director Tools & Diagnostics rmausehund@rwbaird.com +1.650.858.3817

Vincenzo di Nicola Managing Director European Healthcare vdinicola@rwbaird.com +44.20.7667.8532

David Schechner Managing Director Life Sciences & Pharma dschechner@rwbaird.com +1.617.426.5424

Bill Suddath Managing Director Healthcare IT & Services bsuddath@rwbaird.com +1.404.264.2222

Manish Gupta Director Medical Technology mgupta@rwbaird.com +1.414.765.3802

James Weck Director Healthcare IT & Services jweck@rwbaird.com +1.312.609.4675

David Silver Managing Director Head of European Investment Banking dsilver@rwbaird.com +44.20.7667.8216

Vinay Ghai Managing Director European Financial Sponsor Coverage vghai@rwbaird.com +44.20.7667.8225

Thomas Fetzer Managing Director Head of DACH Investment Banking tfetzer@rwbaird.com +49.69.130.149.20

Tahseen Siddique Vice President M&A Research tsiddique@rwbaird.com +44.20.7667.8402

A report and video by global investment bank Baird finds that M&A activity in healthcare continues to flourish in Europe. Driven by entrenched secular trends of digitalisation, outsourcing and patient empowerment, private equity firms and strategic buyers are acquiring at high valuations.

The Baird report analysed over 200 mid-market healthcare M&A transactions in Europe since 2010. The analysis covers five major subsectors: Medical technology & life sciences, Pharmaceuticals, Outsourcing, Healthcare IT and Healthcare Services. The average valuation multiple in Baird’s analysis was 11x EBITDA. Highlights from the report include: • Healthcare services has been the most active subsector, accounting for one-third of all European middle-market healthcare M&A deals.

• Consolidation and patent expirations have left large pharma companies with many inefficient manufacturing facilities and they continue to outsource more manufacturing, early stage analytical formulation and development activities to CROs and CDMOs. Demand for healthcare IT is accelerating due to the increasing need for efficiency and automation at every stage of the care delivery process. As a result, Healthcare IT targets had the highest valuation of all the subsectors at 13.2x.

Vincenzo di Nicola, Managing Director and Baird’s senior European healthcare banker commented: “M&A activity in the global healthcare sector has been at record levels in recent years and activity in the European healthcare mid-market segment was no exception. This report explores what’s driving the high valuations and the competitive processes that have buyers – increasingly from all over the world, including the US and Asia – coming to acquire attractive assets.”

Report: https://goo.gl/KyXrpv Video: https://goo.gl/BGjTD3 143 Gamechangers

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Global M&A activity declines in the first half of 2016 after reaching record high in H2 2015

Half Year M&A Activity Report Global, H1 2016

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M&A volume and value down in all regions, global PE/VC activity also declines across the board Both the volume and value of global mergers and acquisitions (M&A) dropped significantly in the first half of 2016, according to information collected by the leading M&A database Zephyr. In all there were 43,352 deals worth a combined USD 1,941,538 million in the opening six months of the year, compared to 53,287 deals worth USD 3,270,736 million in the second half of 2015. Declines were also recorded year-on-year; in H1 2015 USD 2,942,215 million was injected across 52,637 deals. The disappointing showing means the last time volume and value were this low for a six month period was in H1 2013 (43,065 deals worth USD 1,685,036 million).

Lisa Wright, Zephyr director, commented, “It was always going to be challenging for 2016 to keep up with the blistering pace of M&A dealmaking set in 2015 and many will have been concerned that activity would not be able to sustain the levels Lisa Wright, Zephyr director, commented, “It was always going to be challenging for 2016 to keep up with the blistering pace of M&A dealmaking set in 2015 and many will have been concerned that activity would not be able to sustain the levels recorded last year. To that end, H1 appears to have confirmed many people’s worst fears.

However, it is worth noting that in every year since 2012 the second half of the year has performed better than the first in terms of value. It would not be unheard of for activity to improve significantly over the course of the coming six months, in which case we could be looking at a very different picture at the end of December in terms of figures for the whole of 2016. The recent Brexit vote by the UK has caused consternation in the global financial markets, and the current uncertainty around the global markets could impede upon dealmaking appetites for the remainder of the year.”

Zephyr shows that the decline in value comes as a result of decreased deal volumes in H1 2016, combined with fewer “mega” deals being signed off

over the six months. Just 12 deals broke the USD 10,000 million barrier in H1 2016, compared to 39 deals in the second half of 2015. However, a number of significant transactions were still announced, and the top deal over the six months featured a Swiss target, as ChemChina, through its CNAC Saturn (NL) vehicle, agreed to pick up Basel-headquartered agricultural pesticides and fertilisers manufacturer Syngenta for USD 43,000 million. However, at present the future of this deal is not clear, with recent reports suggesting the US government and the Committee on Foreign Investment may decide to block the transaction.

This is one of only three deals worth more than USD 10,000 million announced during the period which did not feature a US target. The other transactions include the USD 13,185 million combination of Deutsche Boerse with the London Stock Exchange and Aegon’s USD 17,601 million purchase of BlackRock’s defined contribution pension platform and administration business.

The majority of world regions included in the report also declined in terms of both volume and value in H1 2015.

The only exception was MENA, where value climbed 23 per cent to USD 15,720 million over the six months, although volume was in keeping with the global trend, dropping from 349 deals in H2 to 345 in H1 2016. All other regions declined over the six months, with the steepest drop reserved for Central and Eastern Europe, which slipped 52 per cent from USD 88,453 million in H2 2015 to USD 42,538 million.

Meanwhile, the Zephyr database shows private equity dealmaking followed the same pattern in the first six months of 2016; the last time value was lower was in H1 2013, when USD 172,978 million was invested, although even that figure was higher than the USD 129,492 million invested in H1 2012. In all there were 2,651 private equity deals worth USD 196,037 million signed off during the six months. In terms of volume this represents a 20 per cent decline on the 3,325 deals announced in H2 2015, while value fell 47 per cent from USD 367,516 million over the same timeframe. Both volume and value were also down year-on-year as the latter dropped 25 per cent on the USD 261,640 million invested in the first half of 2015 and the former declined at the slower rate of 22 per cent from 3,402 deals over the same timeframe.

Report: https://goo.gl/McEayt

145 Gamechangers

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