Adam Joy to head TMT Corporate Finance KPMG UK

15 June 2015 Consultancy.uk

Adam Joy has been appointed as Partner at KPMG. In his new role he will lead the firm’s UK Corporate Finance team in TMT and M&A activity, bringing his more than 20 years’ experience with corporates like UBS and Warner Bros International Television Production to the firm.

Adam Joy joins KPMG from Warner Bros International Television Production, where he fulfilled the role of Vice President in Business Development and M&A since 2011, leading the company’s strategy and M&A. Before this, between 2009 and 2011, he was the Managing Director Corporate Finance at Numis Securities, and the Managing Director of Ingenious Media Corporate Finance, between 2007 and 2008, giving corporate advice to media companies. From 1993 to 2007, he ascended UBS’ corporate ladder to become the firm’s Managing Director of European Media Investment Banking, this position saw him responsible for UBS' EMEA media investment banking team, and included the media business as well as advising on M&A activity. Joy started his career at Procter & Gamble as a Financial Analyst in 1992.

Joy holds a Master degree in Engineering Economics and Management from the University of Oxford.

Adam Joy and David Elms - KPMG

As Partner at KPMG UK, Joy will lead the firm’s corporate finance team for the technology, media and telecoms sectors as well as working to advise clients in M&A activity.

Commenting on the appointment, David Elms, UK Head of Media at KPMG, says: “The boundaries between the media and tech sectors continue to blur, as media companies acquire the talent and skills they need to provide new digital services to consumers.  They are also investing heavily in their data and analytics capability, to try to better identify and understand rapidly changing consumer behaviour. These trends will drive significant consolidation over the next 18 months.  Adam’s extensive industry experience and network of contacts will play a crucial role in helping our clients to drive their acquisition and sales strategies to adapt and build their business.”

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8 tips for successfully buying or selling a distressed business

18 April 2019 Consultancy.uk

Embarking on the sale of a business is one of the most challenging experiences a management team can undertake. Even serial dealmakers acknowledge that the transaction process can be gruelling, exposing management to a level of scrutiny and challenge through due diligence that can be distinctly uncomfortable.

So, to embark on a sale process when a business is in distress is twice as challenging. While management is urgently trying to keep the business afloat, they are simultaneously required to prepare it for scrutiny by potential acquirers. Tim Wainwright, an experienced Transactions Partner with Eight Advisory, says that this dual requirement means sellers of distressed businesses must focus on presenting their business in a way that supports buyers in identifying value, whilst simultaneously being open about the causes of distress. 

According to Wainwright, sellers of distressed businesses should focus on eight key aspects to ensure they are as well prepared as possible:

  • Cash: In a distressed situation cash truly is king. Accurate forecasting and day-by-day cash balances are often required to ensure any buyer is confident that scarce cash reserves are under proper control. 
  • Equity story and turnaround plan: Any buyer is going to want to understand the proposed turnaround strategy: how is the business going to enact its recovery and what value can be created that means the distressed business is worth saving? Clear presentation of this strategy is essential.
  • The business model: Clear demonstration of how the business model generates cash is required, with analysis that shows how financial performance will respond to key changes – whether these are positive improvements (e.g., increases in revenue) or emerging risks that further damage the business.  Demonstrating the business is resilient enough to cope with these changes can go a long way to assuring investors there is a viable future.
  • Management team: As outlined above, this is a challenging process. The management team are in it together and need to be consistent in presenting the turnaround. Above all, the team needs to be open about the underlying causes that resulted in the distressed situation arising.  A defensive management team who fail to acknowledge root causes of distress are unlikely to resolve the situation.

8 tips for successfully buying or selling a distressed business

  • Financing: More than in any traditional transaction, distressed businesses need to understand the impact on working capital. The distressed situation frequently results in costs rising as credit insurance becomes more difficult to obtain or as customers and suppliers reduce credit. Understanding how these unwind will be important to the potential investors.
  • Employees: Any restructuring programme can be difficult for employees. Maintaining open communications and respecting the need for consultation is the basic requirement. In successful turnarounds, employees are often deeply engaged in designing and developing solutions. Demonstrating a supportive, flexible employee base can often support the sale process.
  • Structuring: Understanding how to structure the business for the proposed acquisition can add significant value. Where possible, asset sales may be preferred, enabling buyers to move forward with limited liabilities. However, impacts on customers, employees and other stakeholders need to be considered.
  • Off balance sheet assets: In the course of selling a distressed business, additional attention is often given to communicating the value of items that may not be fully valued in the financial statements. Brands, intellectual property and historic tax losses are all examples of items that may be of significant value to a purchaser. Highlighting these aspects can make an acquisition more appealing.

“These eight focus areas can help to sell a distressed business and are important in reaching a successful outcome, but it should be noted that it will remain a challenging process,” Wainwright explains. 

With recent studies indicating that the valuation of distressed business is trending north. With increased appetite from buyers who are accustomed to taking on these situations, it is likely that more distressed deals will be seen in the coming months. “Preparing management teams as best as possible for delivering these will be key to ensuring these businesses can pass on to new owners who can hopefully drive the restructuring required to see these succeed,” Wainwright added.