ADVISORY

Our Merger & Acquisitions specialist expertise is demonstrated through more than two decades of helping corporates and their owners generate value.

Find out more about M&A and Strategic Advisory

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From our decision to pursue this exit route, it was achieved in under 4 months….a strong testament to the professionalism of the advisory team involved….

Managing Partner mid-cap private equity fund

Case Study

Asked to advise an established private equity fund on the exit of its joint-controlling shareholding in a leading healthcare services company, David Hill managed a dual-track exit process, attracting competing offers from notable private equity and UHNW investors. It culminated

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If you’re looking to grow by acquisition, or require additional capital to fund organic growth or as part of a refinancing, ReSolve can advise you on optimal sources of capital.  Our equity capital raising team will help you to prepare and access capital.

Find out more about Equity Advisory and Capital Raising

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The significant investment constitutes a powerful acknowledgement of the outstanding progress made and milestones achieved since the IPO...

Chairman, International Company

Case Study

Essex-based Proficient Security specialises in providing security services to a range of clients including Embassies, HNWIs, construction and education firms, with a £5m yearly turnover. The security services industry suffers from an inherent cash flow challenge – many firms face

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If you’re looking to restructure all or part of your business, ReSolve can help plan, source and direct finance or refinancing for the short and longer-term business needs. We bring our independent perspective and experience to make effective and high-impact changes to your business structure and models.

Find out more about Debt Advisory and Restructuring

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Our experience of ReSolve has been consistently excellent. We have always found their work to be of a high standard, backed by common sense and highly commercial advice. They show professionalism in striving to achieve the right outcome for all stakeholders. I would recommend them to anyone.

Director, National Asset Based Lender

Case Study

Salt Engineering Limited was incorporated in January 1983 and the Coventry-based business had been trading since 1945. A manufacturer of tools and precision engineering equipment, Salt served a number of significant industries, including aerospace, automotive, power generation and fluid power.

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CAPITAL

If you’re looking to grow by acquisition or in need of additional capital to fund a breakthrough strategy for organic growth, ReSolve can open the door. Our partner-backed mid-cap investment fund can be accessed directly or we can co-ordinate introductions to a wider set of third party specialist lenders and investors.

Find out more about Partner-backed Investment Fund

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ReSolve immediately understood our business and the issues we faced and then worked tirelessly to ensure the transaction completed quickly so we can now focus on our clients growing needs.

Managing Director of a company in the Entertainment sector

Case Study

In 2015 ReSolve was approached by a solicitor whose client, Javelin Plastics in the engineering sector was facing administration due to growing creditor pressure and a lack of working capital. Whilst the Company had a strong trading history, its management

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The changing faces of HMRC

In any growing or turnaround business where cash is critical, the obligation to HMRC will always play a significant part in forecasting and business structuring. Over the last 12 months it appears to us that HMRC are taking a less relaxed approach to collecting PAYE and other tax liabilities. In our experience, with the right engagement early, HMRC can be thoughtful and understanding if there are good reasons why debt has built up – evidenced by agreeing Time-To-Pay arrangements.

But recently we have seen an increase in two types of occurrence that can have significant consequences for managing cash flow.

  1. Issuing of bonds – previously these have typically been issued by HMRC when there is a history of liquidations or repeated inabilities to settle arrears in a business – with a requirement to make an advance payment for 4 to 6 months of a PAYE or VAT liability that will be held as a bond for up to 12 months. We are now seeing instances when bonds are being demanded for businesses without such a chequered history  – it seems the relationship with HMRC is the key driver. Late payments, poor communications, arrears build up or sometimes just a business in a sector deemed risky may be reason enough.
  2. APNs. These have been around for a while but HMRC are building up a tidy collection of Accelerated Payment Notices in respect of tax avoidance schemes. Various figures have been quoted and HMRC have collected upwards of £3bn since they started to harden their approach in 2014. APNs cannot be appealed – but they are also viewed as a pretty blunt tool and have attracted some criticism.

So, with Bonds and APNs, do we think HMRC are playing hardball? As far as APNs are concerned they have given good warning about tax avoidance schemes and on the whole such schemes are best well avoided – unless your liquidity is sufficient to take the hit if the scheme falls foul of the regulations. That’s quite a risk.

On HMRC payment bonds, we are working increasingly with our clients on their engagement with HMRC – we have a specialist service centre to do so. The requirements to provide a bond might just be a sign of HMRC feeling the pinch themselves.

When dealing with HMRC, we advise strongly on a few key points:

  1. Don’t ignore them.
  2. Tax arrears are real – and could be the trigger that can push a business over the edge.
  3. HMRC do have a negotiating face. It is a grown up one and to be treated with respect but their interest is in collecting owed tax, not putting businesses under.
  4. Time-To-Pay arrangements can create real headroom for businesses to manoeuvre.
  5. There may be an alternative approach to restructure your debt to clear HMRC arrears and reduce the pressure on the business.
  6. ReSolve Capital has a specialist HMRC bond lending service for its Advisory clients

With a hung Parliament, or at best a coalition, creating instability in the UK economy we could see increasing pressures on cash flow. We’ll continue to monitor through our Advisory and Capital divisions.

As this seems to be a changing landscape – keep up to speed with our latest relevant experiences of the changing faces of HMRC towards SME’s through ReSolve Periscope and on our twitter and LinkedIn channels.

If you have any specific needs to do with managing your relationship with HMRC, we have a service centre set up to help you – the details are in this paper: ReSolve specialist services – HMRC Engagement

There are also options to use our ReSolve Capital division if you are faced with an HMRC bond – just contact mark.supperstone@resolvegroupuk.com in confidence.

Mark Supperstone
Partner, ReSolve

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