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

A FTSE 250 business, and a leading UK business within its sector, pursued a successful acquisition strategy in late 2015 resulting in the purchase of a group of businesses that have subsequently doubled turnover. Adapting to the synergies this created,

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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

In early 2014, David Hill was engaged to work with the Chairman, the Founder and CEO and other key institutional shareholders of an international real estate investor to recommend an equity restructure to repay bank debt, invest in the current

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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

In the spring of 2017 ReSolve was asked to review restructuring options for an established B2B fintech business. Although a leader in its sector, there was a recent history of cash and trading issues and a large forecast cash requirement,

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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

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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The ongoing debate surrounding the use of CVA’s

Everyday seems to bring more news headlines which highlight the numerous challenges being faced by many sectors as a result of reduced consumer spending, rising overheads and the weaker pound. Once an absolute last-resort, many organisations are now turning to CVA’s as a way of both managing outstanding debt and negotiating a way forward to ensure the survival of their business.

A Company Voluntary Agreement (CVA) is a formal insolvency procedure in which a company proposes revised repayment terms to one or more creditors with the help of an appointed insolvency practitioner. It is negotiated on behalf of the organisation in difficulty with its creditors to enable them to initially reduce their debt and overheads and then shrink their overall on-going costs. To achieve this 75% of creditors, by value, need to agree to a reduction in, or write-off of the debt owed to them. In addition agreement may need to be sought from the PPF (Pension Protection Fund) if the organisation concerned has debts which affect its pension scheme.

For the organisation securing agreement to a CVA – recently Byron Burger, Prezzo, Jamie’s Italian, Poundworld, Carpetright, and New Look have all gone down this route – it means a way out of an (arguably) unsustainable situation, business survival at least in the short term, and the probable requirement to examine and even restructure its business operations in the future. Indeed most companies successfully negotiating a CVA will need to demonstrate a clear understanding of the issues that have caused their problems and a transparent action plan to address these in the future. They will also likely require access to new funding and working capital.

For the insolvent company’s creditors it means reduced revenues both for the existing outstanding debt and possibly on-going for the future. Using a CVA should give unsecured creditors a better financial return than they would achieve in alternative insolvency procedures.The directors remain in control of the business which continues to operate as normal, subject to the terms of the CVA and under the supervision of an insolvency practitioner.

Increasingly however retail landlords in particular are coming under pressure from CVAs which allow retail tenants in difficulty to offload underperforming units and reduce rents. Whilst a CVA ensures continuity of tenant and some revenue, albeit reduced, many landlords feel increasingly vulnerable that agreements they originally made in good faith are being torn up and revised to their detriment.  Frequently they find they are unable to resist as typically the proportion of the total debt owed is not big enough to allow them to outright reject a CVA proposal. Latest reports now suggest some landlords are planning to group together to put pressure on plans for future CVA arrangements to ensure that they are only used as an emergency option. The latest news surrounding the future of beleaguered House of Fraser hints at its landlords now being prepared to even reject plans for a CVA which could force the chain into administration.

Many landlords also believe CVAs are creating an unfair playing field for those tenants who are paying the market rate, however the alternative may well be an empty property that is hard to re-let and an on-going rates responsibility. Apparently fashion chain Next now plans to insert a “CVA clause” into its future lease agreements to enable the reduction of its own rents if any of its landlords’ other tenants, or its properties in close proximity, agree a CVA.

Recently published research, produced by the University of Wolverhampton and Aston University, which was commissioned by insolvency and restructuring trade body R3 and supported by the ICAEW, suggests reforms should be made to improve the effectiveness of CVA’s. It recommends a cap on CVA lengths, more time for companies to plan a CVA, clearer roles for directors and CVA supervisors, more engagement from public sector creditors, and the introduction of standard terms.

CVA’s allow creditors to at least have a voice in the insolvency process. They are flexible and can be adapted to different circumstances and frequently enable more money to be returned to creditors than in other insolvent circumstances such as administration and liquidation.

ReSolve’s experience confirms that taking the right advice, at the right time and developing a strong business plan with the guidance of a respected insolvency practitioner maximises an organisations chances of long term survival. The difference between businesses that survive and thrive and those that fail is how well they manage difficulties.

If you or any of your clients are facing difficulties and considering a CVA arrangement ReSolve has the expertise to advise, manage and deliver a successful resolution. Please contact us to discuss options without charge or obligation.

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