Tait Walker optimistic for the coming year

Jan 20 2010 by Peter McCusker, The Journal

A SUCCESSFUL 2009 for the dealmaking team at independent accountants Tait Walker, which saw it top the annual North East deal table, has left it optimistic for the coming year as funding slowly becomes more available to businesses.

Earlier last year Tait Walker’s focus of activity centred on fundraising and refinancing as its clients sought to restructure their business funding, in order to weather the economic storm.

In the latter part of the year, the emphasis shifted and Tait Walker’s corporate finance team, headed up by Michael Smith, saw an increase in disposals and equity raising.

This trend was particularly prevalent in the SME market as operators sought organic growth identifying opportunities to exploit the weakness of competitors.

Completed deals spanned a number of sectors, including expansion funding for pet supermarket and internet marketing operator Viverdi; the sale of Gateshead-based HFW Plastics; the management-buy-out of Widney Pressings, of Newcastle to become ADM Pressings; and sourcing funding for Amble-based Northumberland Foods, securing its future and that of most of the company’s employees.

Tait Walker, which topped the Corpfin North East league table with eight completed deals, was also a key adviser in the acquisition of Darlington Football Club by Teesside businessman Raj Singh.

In December 2009, partner Steve Plaskitt sourced funding from two local business angels, who have experience of both the automotive and engineering industries, to assist with the acquisition of a Northumberland based automotive electronic control design and manufacturer. Under its new ownership the company will focus its attention on the growing electric vehicle sector.

Throughout the year according to Michael Smith, the main challenges in securing the right funding for clients, was the need to draw up robust business plans.

He said: “Across the region deal volumes were reduced by some 50% this year and deal values were less than that as the larger deals disappeared.

“ As funders became more cautious, so borrowing became more challenging. Of significant importance in securing funding, has been the need for businesses to draw up robust business plans and forecasts.

“In some cases our team has worked with client management teams to develop these plans to secure existing or increased facilities.”

Smith believes 2010 will be citing the increase in availability and the launch of new funding.

He said: “We have high hopes that there is light at the end of the tunnel We anticipate that banks and asset-based lenders will increase the availability of debt financing.

“Also, the launch of £125m North East JEREMIE funding will double the annual value of debt and equity available to SMEs from the public sector.”