Government backed Acquisition Finance now available

The Government has confirmed one of the eligible purposes of The Coronavirus Business Interruption Loan Scheme (CBILS) is to fund the buying of businesses in the UK. This will provide a boost to M&A activity enabling businesses with turnovers of up to £45 million to make strategic acquisitions while benefiting from no upfront costs and lower initial repayments for their financing. In turn, sellers will be able to sell their businesses during a difficult period.

So, is now the time to make acquisitions or to sell your business?

The answer for some businesses is Yes.

One way to safeguard your business in difficult times and to ensure its future is to grow profitable revenue streams. Acquisitions of strategic targets can achieve this. Furthermore, this is a time when there may be real value in the market.

Sellers will also benefit. Fusion have been retained by a number of sellers and approached by and are aware of a number of acquirers who can offer finance (whether through CIBLS or not) to secure the future of prospective selling business; and where a seller’s business may be suffering some distress, the use of earnouts and other structures will allow sellers to benefit from future profits.

If you would like a confidential chat to discuss the options please let us know.

What is The Coronavirus Business Interruption Loan Scheme (CBILS)?

CIBLS is open to businesses with an annual turnover of up to £45 million facing cashflow difficulties who previously would not have been eligible for CBILS because they met the requirements for a standard commercial facility. The scheme went live on Monday 23 March and will initially run for six months. CIBLS is available through more than 40 accredited lenders across the UK.

It guarantees facilities up to a maximum of £5 million, available on repayment terms up to six years (for term loans and asset finance) and up to three years (for overdrafts and invoice finance facilities). The scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility.

There is no guarantee fee to access the scheme. The Government will make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees. You will therefore benefit from no upfront costs and lower initial repayments.

To be eligible for a facility under CBILS, your business must:

  • Be UK-based in its business activity
  • Have an annual turnover of no more than £45 million
  • Have a borrowing proposal which the lender would consider viable, were it not for the current pandemic
  • Self-certify that it has been adversely impacted by the coronavirus (COVID-19).

Full details are available at the 100% Government owned, but independently managed British Business Bank website.

If you are interested in acquiring or selling a business get in touch with Fusion. We are ready to help.

Bloomsbury Publishing acquires Zed Books assets

Bloomsbury Publishing Plc (“Bloomsbury”) announces today that it has acquired certain assets of Zed Books Limited, the London-based academic and non-fiction publisher. The consideration was £1.75 million, of which £0.875 million was satisfied in cash on completion and the remainder to be paid within 12 months.

Zed will operate within Bloomsbury’s Academic & Professional division and is expected to contribute approximately £0.8 million of revenue to Bloomsbury in its first year. The Acquisition is expected to break even in its first year, before reorganisation and acquisition costs, then be earnings enhancing thereafter, with improved profit following the integration of the business into Bloomsbury.

The acquired Zed titles are a good strategic fit with Bloomsbury’s existing publishing lists, whilst strengthening its offerings in African Studies and Development Studies. With the combined lists of Zed and I.B. Tauris, Bloomsbury is now a leader in academic Area Studies publishing. The Acquisition also enhances Bloomsbury’s Politics and International Relations list.

Jonathan Glasspool, Managing Director of Bloomsbury’s Academic & Professional Division said, “We are delighted to become the new guardian of the prestigious and progressive Zed list. The Zed programme aligns very well with our existing publishing within I.B. Tauris, and complements Bloomsbury Academic’s publishing across a wide range of humanities and social science subjects. Over 40 years, Zed has built up a unique presence in African and Development Studies, an area we wish to grow. We greatly look forward to working with Zed’s wonderful range of authors and partners.”

UK, London

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Thomson Reuters acquires Pondera Solutions

Thomson Reuters has acquired Pondera Solutions, a provider of technology and advanced analytics to combat fraud, waste and abuse in healthcare and large government programs. Financial terms of the acquisition were not disclosed.

Thomson Reuters serves government agencies at the federal, state and local level with solutions and resources to improve efficiencies, diminish risk and reduce fraud. The acquisition of Pondera Solutions will enhance the offerings in the risk, fraud and compliance space and will allow Thomson Reuters to expand on its strategic approach to deliver insight through advanced analytics, artificial intelligence and human expertise.

“Thomson Reuters and Pondera share a commitment to serve customers with solutions that reduce fraud by individuals targeting government programs,” said Steve Rubley, president of the Government business for Thomson Reuters. “Pondera will be a key component to the suite of tools available to government customers that use technology, data and human analysis to support their mission and benefit their communities.”

“Government agencies offer and operate some of the largest programs in the world, and that fact alone makes them targets for illicit gains through fraud,” said Jon Coss, CEO and founder, Pondera Solutions. “We have taken the latest technology and advanced analytics to help our clients combat fraud and waste, and by joining Thomson Reuters, we will be able to offer even more to help customers with key insights to minimize risk and reduce fraud.”

Founded in 2011, Pondera Solutions is based in Sacramento and has an office in Florida.

USA, Minneapolis-Saint Paul, MN & USA, Sacramento, CA

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MJ Hudson Group acquires Meyler LLC 

MJ Hudson Group plc, the international financial services support provider, has acquired Meyler LLC, a marketing services and analytics business with a full and part time staff of eight, based in New York and Vancouver. Meyler will be integrated into MJ Hudson’s existing marketing and analytics business in the UK, to form a transatlantic offering to asset managers. The acquisition is expected to be marginally EPS enhancing to MJ Hudson Group plc in its first full year of consolidation.

Formed in 2012, Meyler has an established client base in the Private Equity and Hedge funds sectors, with over 50 predominantly North American clients. As such, it will add to both MJ Hudson’s 200+ existing North American clients and 750+ global asset management clients.

Matthew Hudson, CEO of the Group, said, “Meyler is an award-winning marketing services and analytics business in the alternatives space, led by a dynamic management team. Their client relationships and digital media expertise make for a compelling combination with our own MJ Hudson marketing business. Meyler has a particular expertise in the use of digital data and analytics to optimise clients’ communications with investors and would-be investors. As we continue into a new era of asset management, we anticipate greater need in our client base for digital marketing and analytics services. Meyler is a recognised leader in this field.

“This move is another small but important step in our strategy for growth in North America. Meyler is an unregulated business with an entrepreneurial management team, a client base we understand and services we can scale. This deal builds on the 200 clients we already have in the US, the largest single market for alternatives clients and funds, and follows the opening of our New York office announced prior to the IPO.”

UK, London & USA, New York, NY & Canada, Vancouver

UK – lifetime limit on entrepreneurs’ relief reduced from £10 to £1M

Rishi SunakIn the UK Budget delivered today (March 11) Rishi Sunak, the Chancellor of the Exchequer, reduced the lifetime limit on entrepreneurs’ relief to £1 million.

Entrepreneurs’ Relief provides for a lower rate of Capital Gains Tax (10%) to be paid in the UK when disposing of all or part of a business where certain criteria are met. Until today it was subject to a lifetime limit of £10 million of qualifying gains. This measure reduces the lifetime limit to £1 million for Entrepreneurs’ Relief qualifying disposals made on or after today.

It means from today individuals who dispose of all or part of their business; individuals who dispose of shares in their personal company; and trustees who dispose of business assets will now pay 10 per cent Capital Gains Tax on the first £1 million of qualifying gains and 20% thereafter. Previously they paid 10 per cent Capital Gains Tax on the first £10 million of qualifying gains; and then 20%.

Here is what Sunak said of Entrepreneurs’ Relief in today’s budget speech.

Expensive – at a cost of over £2bn a year.

Ineffective – with less than 1 in 10 claimants saying the relief has been an incentive to set up a business.

And unfair – with nearly three quarters of the cost going to just 5,000 individuals.

Just because it is called Entrepreneurs’ Relief doesn’t mean that it’s entrepreneurs who mainly benefit.

For all these reasons, I have heard representations that I should completely abolish it.

The Institute for Fiscal Studies have criticised it.

The Resolution Foundation called it “the UK’s worst tax break”.

I’m sympathetic to that argument.

But at the same time, we shouldn’t discourage those genuine entrepreneurs who do rely on the relief.

We need more risk-taking and creativity in this country, not less.

So I have decided not to fully abolish Entrepreneurs’ Relief today.

Instead, I will do what the Federation of Small Businesses called “a sensible reform” and reduce the lifetime limit from £10m to £1m.

80% of small business owners are unaffected by today’s changes.

Those reforms save £6bn over the next five years – and I’m giving most of that money straight back to business through three additional measures.

The Research and Development Expenditure credit will be increased from 12 to 13% – a tax cut worth £2,400 on a typical R&D claim.

The Structures and Buildings Allowance will be increased from 2 to 3%, giving an extra £100,000 of relief if you’re investing in a building worth £10m.

And, to cut taxes on employment, I will deliver our promise to increase the Employment Allowance by a third to £4,000.

That’s a tax cut this April for nearly half a million small businesses.

UK

Policy Paper

The Capital Gains Tax Entrepreneurs’ Relief policy paper published today by Her Majesty’s Government is published here

Previous articles Fusion DigiNet articles about Capital Gains Tax and Entrepreneurs’ Relief

Reed Exhibitions acquires ITS America’s World Congress and Annual Meetings

ITSDC2019_Annual MeetingReed Exhibitions has acquired two events from Intelligent Transportation Society of America (ITS America) — the North American-based ITS World Congress and Annual Meetings. The terms of the transaction were not disclosed.

“I am delighted to announce this landmark acquisition and look forward to starting a long-term strategic relationship with the Intelligent Transportation Society of America,” said Hervé Sedky, president of Reed Exhibitions Americas. “We will work together to enhance these market-leading shows and adding value to ITS America’s growing membership base.”

Launched in 1993, ITS World Congress brings together policymakers, entrepreneurs, researchers, academics and investors from the global intelligent transportation and mobility communities for policy discussions on the latest transportation and mobility trends, products and technologies, technical tours and demonstrations, and networking.

ITS American will continue to lead, manage and deliver content for both events. The first joint event with Reed Exhibitions and ITS America is due to take place Oct. 4-8 at Los Angeles Convention Center. With the theme, “The New Age of Mobility,” it will focus on how new technologies and forms of mobility are transforming transportation, ensuring that the future is safer, greener and smarter. Featured technologies will include connected and automated vehicles, privacy and data access, cybersecurity, infrastructure, artificial intelligence and more. About 10,000 ITS professionals from 65 countries, along with 300 exhibiting companies, are expected.

With this acquisition, Reed Exhibitions continues to grow its portfolio of more than 500 events across 30 countries in sectors including security, transportation, lifestyle, media and energy. Will Wise, group vice president of security and technology events, will be Reed Exhibitions’ lead for the ITS America events.

USA, Washington, D.C. & New York, NY

 

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Comexposium JV acquires the Indonesia Motorcycle Show (IMOS)

Seven Event, a joint venture platform between Comexposium with Amara Pameran International (API), has acquired the Indonesia Motorcycle Show (IMOS). The terms of the deal were not disclosed.

President Director Seven Event Romi explained that the acquisition is the final step to develop the internationally acclaimed auto show, “GIIAS (GAIKINDO Indonesia International Auto Show) needs to further grow as a brand and become a solid event. The acquisition was the right step to complete the show.” Held since 2015, GIIAS The Series is the biggest automotive exhibition under the management of Seven Event. Its expansion to several Indonesia’s region will allow Seven Event to also expand their portfolio in the automotive based exhibition.

In 2020, Seven Event will hold a total of six exhibitions, covering all sectors of the automotive industry, which include passenger car, commercial vehicle, motorcycle, and the automotive supporting industries. “GIIAS The Series will officially strengthen Seven Event’s footprint as a leading automotive exhibition organizer in Indonesia,” said Romi.

GIIAS 2020 The Series includes GIIAS Surabaya 2020, The 28th GIIAS in Jakarta, GIIAS Makassar 2020 and GIIAS Medan 2020.

France, Paris & Indonesia, Jakarta

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SAE International acquires SMi Group

SMi logoSAE International, the professional association and standards developing organisation for engineering professionals, has acquired SMi Group Ltd, a United Kingdom-based company that specialises in the production of global events for the aerospace, defense and medical/pharmaceutical sectors. As part of the acquisition, SAE International will merge SMi Group with Tech Briefs Media Group (TBMG) to form the SAE Media Group.

David Schutt, Chief Executive Officer of the SAE Group, welcoming SMi, said, “As an organization, we have historically expanded through a strategic M&A approach, so this move helps us achieve our global goals,” said Raman Venkatesh, Executive Vice President and Chief Operating Officer of SAE International. “The formation of the new SAE Media Group directly supports the priorities and focus of the larger SAE organization, and helps us leverage our broad capabilities.”

SMi Group specialises in coordinating high-level events within its target industries that convene influential thought leaders with speakers to learn, engage and network on the topics most pressing to industry. TBMG, an existing SAE International company, offers a diverse set of print and electronic media resources that deliver unparalleled coverage of the design engineering market across multiple disciplines.

Dale Butler, Managing Director of SMi Group, said: “The expanded SAE Media Group will provide increased diversity of content and allow us to serve SMi Group’s customers and clients with new, innovative products and services, while maximizing growth, synergies and scale opportunities across our combined international products. We are excited about the next chapter of our evolution as a leading producer of specialist business-to-business conferences and look forward to growing as part of the SAE Media Group.”

The acquisition of SMi Group Ltd was approved and finalised by the SAE Board of Directors in January 2020.

USA, Warrendale, PA & UK, London, UK

 

 

Roar Techmedia acquires events from Prysm Media Group

5c7.Roar-Media_Logo-webRoar Techmedia, the trade exhibitions organiser, has secured a significant investment from Apiary Capital to fund the acquisition of a portfolio of events from Prysm Media Group. The events are focussed on the healthcare, environmental and marketing technology sectors and include leading brands such as RWM, Naidex and Call & Contact Centre Expo.

Roar Techmedia was founded by Duncan Kirk. Russell Taylor, Chairman of Roar Techmedia, previously led ITE Group and Earls Court & Olympia.

“The healthcare, environmental and B2B marketing sectors are not only growing rapidly in terms of investment, but are also high on the public agenda,” commented Duncan Kirk, CEO of Roar Techmedia. “More effective management of the aging population, large scale commercial recycling and digital transformation, are all critical to how we live, communicate and work.”

“The potential to revolutionise these events not only in the UK, but also internationally, is significant,” continued Kirk. “Our management team’s experience of engaging global audiences, with programmes of high-quality content will deliver a new experience to attendees and exhibitors alike.”

“Roar Techmedia is taking advantage of a rapidly growing market opportunity and has a uniquely dynamic and powerful approach,” says Dan Adler, Partner at Apiary Capital. “The proven expertise of Roar’s management team, aligned with our track record in this sector, made it a compelling proposition for us. We look forward to working with the team as they implement their exciting plans for the exhibitions and to supporting the growth and global expansion of the business.”

UK, London

 

 

Portugal’s Cofina acquires Media Capital from Spain’s PRISA for EUR 225M

Cofina logoPortuguese publishing group Cofina has acquired Media Capital, which operates one of Portugal’s biggest TV channels, from Spanish firm PRISA (Promotora de Informaciones SA) for EUR 255 million (GBP 225 million). The terms of the transaction were not disclosed.

PRISA logo

Media Capital is the largest group in the Portuguese media sector. Founded in 1992, it owns TVI which, via its channels TVI, TVI 24, TVI Ficção, TVI Reality, TVI Africa and TVI Internacional, reaches 10 million Portuguese speakers worldwide. The group includes MCR, the leading radio group in Portugal, operating Radio Comercial, M80, Cidade, SmoothFM and Vodafone FM, in addition to 14 digital radios.

Media Capital logoThe group also operates Media Capital Digital (IOL and TVI Player), and can boast more than 390 million visits to the group’s websites and eight million followers on social networks. Media Capital is also the owner of Plural Entertainment, one of the largest producers of audiovisual content on the Iberian peninsula (winner of two Emmy awards), as well as EMAV (a technical and recording services company) and EPC (a stage construction and rental company), both with a presence in the European market.

Cofina already owns tabloid Correio da Manha and business newspaper Jornal de Negocios, among others.

A Cofina spokesperson said, “This acquisition fits with the company’s vision for the media and appears to be the one that is best able to ensure its growth and sustainability, and is in line with the global trend towards consolidation of the media sector in the last years”.

Portugal, Lisbon & Porto  & Spain, Madrid

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