Accountancy team rack up some fantastic deals

Oct 7 2009 by Peter McCusker, The Journal

THE dealmaking team at one of the region's largest independent accountancy firms completed five deals across a range of sectors in the third quarter of the year.

Gosforth-based Tait Walker helped secure the future of Northumberland Foods in Amble when its corporate finance team assisted in securing funding on behalf of a consortium headed up by part of its former management team.

The deal went right to the wire, but resulted in safeguarding the specialist food manufacturer from administration saving 200 jobs.

In August it advised Chester-le-Street Skip Hire and helped it identify potential buyers.

Tait Walker corporate finance adviser Kris Todd managed the sale process through to conclusion which resulted in the company being sold to JBT Waste Services of Bedlington.

Mr Todd said: “The vendors have done extremely well in establishing Chester-le-Street Skip Hire in a very competitive market. I am confident that its reputation for reliability and customer service will continue to grow under its new ownership.”

Using their expertise in obtaining funding from less conventional sources such as business angels and overseas investors, corporate finance team members Steve Plaskitt and Kris Todd advised the shareholders of a security products business on a merger with a larger German-based manufacturer.

The details of the deal have been kept confidential, however, it is understood that the new investor and existing shareholders will work together on new product development and niche applications whilst expanding sales opportunities and exploring new markets.

In the sports world, Mike Russell of Tait Walker’s Tees Valley office, advised on the recent purchase of Darlington Football Club, which saved the club from administration.

On this occasion the client sought to use a number of services offered by Tait Walker, seeking advice on ongoing funding under the new ownership, player budget, taxation and the commercial structure of the business as well as the technical aspects of the insolvency. This proved to be a challenging deal not least because of the timescales involved and the need to complete before the season commenced, but also due to issues associated with satisfying the FA/Football League.

The practice also advised on securing funding in excess of £1m on behalf of Vertical Wind Energy, a wind power company, to establish a North East base.

Corporate finance partner, Michael Smith said: “Quarter three of 2009 has seen the ‘green shoots’ if not of recovery, at least of increased activity, in the corporate finance market in the North East.

“We see three particular trends – a greater availability of bank funding for the right proposition, increasing demand for equity for more mature businesses and continuing streams of good businesses seeking to find an exit.”

Quarter three of 2009 has seen the ‘green shoots’ if not of recovery, at least of increased activity.