The power of global corporate finance in uncertain times
For the first time in over four years, since before the pandemic, almost 60 partners and advisers from the 14 countries which comprise our Moore Global Corporate Finance network met face-to-face in London. The gathering took place on the back of the annual Moore Global Conference held from 22 to 24 October.
“Strategy in Action”, the title of this year’s conference, is much more than just a strapline. It captures Moore Kingston Smith’s collaborative spirit working with our global network of advisers and investors all over the world. The conference title also references our personalised, 360o approach to lead advisory and transaction services. We always go the extra mile to maximise selling and buying opportunities for our clients and the financial institutions we represent.
M&A in the current economic climate
Corporate finance, and in particular mergers & acquisitions, is especially sensitive to changes in the global macroeconomy. Uncertainty and volatility provoked by high global interest rates, rocketing inflation, territorial conflicts and supply chain shortages have become constant and influential factors for businesses and individuals alike. Unfortunately, it feels like they will continue to be the backdrop to doing business for the foreseeable future, certainly in the short to medium term.
With that as the context, and looking to provide robust solutions to our clients, the conference with our global corporate finance partners including Philippe Craninx, Giancarlo Attolini, Marco du Pre and Christoph Schlotthauer among others was a great opportunity to look deeper at the present and begin to analyse the future of corporate finance in the SME and mid markets.
The conference helped us reignite our personal connections, share expertise, market knowledge and insights and discuss challenges that our clients are facing so we can provide tailored solutions and continue to complete deals smoothly and quickly.
Conscious that the only constant seems to be change, we invest in training to prepare our network for the future. At the conference, our advisers took part in four separate training sessions while benefitting from the opportunity to re-establish their personal connections. Both will help streamline processes across the network.
Collaborative global approach that works
This global and collaborative way in which we provide our services and work with our network has proven its value time and again. We have been able to leverage selling opportunities and improve the terms of corporate transactions even in the toughest times by accessing our portfolio of clients and investors in the many countries where we operate.
Most recently, we were involved in selling the largest independent fabricator of PVCu windows and doors in the South East of England. As interest rates rose over the earlier part of the year, institutional and trade buyers took fright. With our global network of advisers and investors, however, we launched a marketing exercise to generate appetite.
The outreach reinvigorated buyers in the UK and wider Europe leading to a competitive bid process which saw several rounds of increasing offers from private equity and trade. The result speaks for itself: a 50% uplift in valuation from the original offer during a particularly harsh economic landscape.
From the other side of the Atlantic, we have been providing local tax and financial due diligence services to a US corporation in Germany, Belgium, Spain and Denmark as they seek to grow market share across the globe.
While capital and investment don’t recognise borders, cultural differences and national and local idiosyncrasies do matter. And that’s the point. Working closely with our global corporate finance network to exchange experiences, best practices and insights to help clients, wherever they are, we can help them realise their business goals in M&A and beyond.
John Cowie, Partner, Moore Kingston Smith
Christoph Schlottheauer, President, Coffra Group