Panic on the streets of England...

Are we entering a pre-budget 'crazy period, and how's everyone doing?

Happy Friday Rainmakers,

There have been a steady trickle of decent sized deals over the last week.

Some speak to a need to get things away before summer, and then announce them in the first week after the summer holidays.

Others may be looking to complete before a headlong rush as panic rips through market, as Rachel Reeves is rumoured to be raising capital gains tax in her October budget.

This Friday summary will look at a few bits of news and views on where things are heading.

SOME KEY DEALS

Maven Capital Partners has realised a significant majority of its investment in Manchester-based compliance and preservation software provider, MirrorWeb, through a sale to a US growth equity firm.

The realisation has generated a 4.0x return on cost for the Maven VCTs, including the value of a retained minority holding in the business and a 5.1x return on cost for NPIF Maven Equity Finance.

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Family-owned mobility product business Millercare has been sold by the controlling Johnson family to its management in order to support ambitious expansion plans.

Nelson-headquartered Millercare was established in 1952 and has 14 showrooms across the North West England as well as a growing online presence selling a range of products including motorised wheelchairs and walking frames.

The investment by Panoramic Growth Equity through its Panoramic SME Fund 3 – its fifth deal – will support continued expansion across the North West.

The fund typically invests between £2m and £8m of debt and equity in businesses with revenues ranging from £3m to £20m.

In the financial year to the end of August 2023 Millercare made pre-tax profits of £798.249 on turnover of £11,751, 796.

Panoramic invested in Millercare alongside its current management team, managing director Nick Buchanan, finance director Phil Neal and operations director Tara Butterworth, who have each been with the company for over 20 years and overseen Millercare’s growth.

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The Access Group, the Loughborough business management software firm, has acquired Onboarded, an Australian-based technology provider of recruitment onboarding software.

Emma de Sousa, group managing director at The Access Group, said the deal lightens the load for recruitment professionals and creates a seamless onboarding process for candidates changing roles or entering the world of work.

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The shifting tectonic plates of the professional services ground a little louder this week after accountancy firm Duncan & Toplis ventured outside of their East Midlands heartland to swoop for Haines Watts North London, which Damian Brain (below) sais was driven by a good cultural fit.

The move into the capital shouldn't be underestimated for a firm which celebrates its centenary year in 2025; it means the firm now has 12 offices serving 12,000 customers.

The secret behind this rapid growth: why, private equity, of course. London-based Blixt Group invested in 2023 and Duncan & Toplis immediately pledged to double its 500-strong workforce.

This latest deal sees the company well on the way and it says it is on course for the biggest period of growth in its history.

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A £100,000 funding deal agreed with the Northern Powerhouse Investment Fund II is enabling a family-owned farming business on the Yorkshire moors to diversify and draw on a fresh income stream.

While residents in some parts of the UK are complaining about being saturated with visitors, Thornton Park Farm has willingly ventured into the tourism sector by using the £100,000 to open a glamping site. Richard Dunnett, who inherited the farm from his parents, was unable to raise the cash required for the glamping pods from a traditional high street bank.

But now thanks to the fund he has an exciting opportunity for growth. As he explained, it is tough to make a living from smaller farms these days so having "the right mix of activities" is key. Good luck to him.

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TURNING WORK AWAY AMIDST BUDGET DOUBT, SURELY NOT?

Nicola Merritt, founder at Cortus, the Rainmaker of the year winner in the North West, asked this question this week, and is having to turn work down.

“So what will the tax changes be in the a October budget and when from? Anyone know? We have had to make difficult decisions over the last month to turn down more Financial Due Diligence engagements than I can count driven by our clients' desire to get deals completed pre October budget.

“I appreciate this is frustrating, particularly for our retained clients that we have long term relationships with. However, at Cortus Advisory Group we won't compromise on quality and we won't comprise the mental and physical health of our team. Many of us are still scarred after the same dynamics impacting work load pre the Spring budget of 2021 only to see no change at all! So whilst we continue to recruit at pace and invest in our team for the long term, we hope our clients appreciate our honesty over this crazy period and accept that we take no pleasure in turning work away. By our very nature, we are driven to get up every day and advise our clients but to do that effectively you need time to think, analyse and strategise, and there are only 24 hours in a day.”

ON RAINMAKERS THIS WEEK: INSIGHTS FROM LDC AND CLEARWATER

Two long profiles on Rainmakers this week have proved popular.

On Tuesday, a dive into the crystal fountain of Clearwater, as the business sweeps the board in our awards and changes its brand.

On Thursday, we brought you an interview with LDC, which showed how you can be candid without being a braggart.

A few key quotes give you a flavour.

Clearwater founder Michael Reeves: “Owner managers still want a good home for the business, and they quite often don't know what a good home looks like until they see it. Quite a lot of them start off saying they are uncomfortable with private equity, because they don't really understand it. Equally, they have strong views about, particularly trade buyers.

LDC’s David Bains: "So it's not a hard sell to the business owner that stresses you should partner with me right now. We say: 'Right, hopefully you understand what we do. You can think through it, and let's keep talking. And 1, 2, 3, years down the line, maybe there's something we can do. Littlefish would be a classic example of that. We'd known those guys for two or three years, and we just built a relationship. By the time they wanted to de-risk and take some money off the table, we were the logical party to deal with at that time."

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RAINMAKERS SEMINAR IN BIRMINGHAM

As the corporate finance community anticipates the end of a subdued and uncertain period, the upcoming Rainmakers Seminar in Birmingham in September will explore the challenge of becoming deal-ready for 2025.

With a more stable policy landscape expected following the general election and some economic headwinds easing, the seminar will concentrate on several key areas:

• Current market demand and appetite

• Funders’ primary areas of focus

• The increasing significance of factors beyond financials, especially ESG and data

• Opportunities within the Midlands market and Rainmakers’ role in driving growth

Hear from Katie Trout, director of policy & partnerships at the West Midlands Growth Company on what opportunities are available for the corporate finance community to engage with across the region.

A keynote speech from a leading West Midlands business figure will follow, offering their insights into working with Rainmakers on M&A proposals and securing investment.

An expert panel consisting of Tom Hustler, senior investment director at Palatine, Nick Gillott, corporate finance partner at Grant Thornton, Deepak Parekh, senior director at Shawbrook Bank, with more speakers to be announced.

RAINMAKERS CONFERENCE IS BACK IN 2025

The art of such deals is just the sort of thing which will pepper our 2025 Rainmakers Conference.

It’s being supported by BGF, Dow Schofield Watts, NorthEdge, Palatine, Shawbrook, Squire Patton Boggs, while PHD Industrial Holdings is a breakout room partner.

So save the date for Rainmakers 2025 –  Wednesday 26 March, 2025 – and secure your place today at The Point, Emirates Old Trafford, Manchester.

It will bring more opportunities to network, more amazing speakers, more candid debate, more inspiring entrepreneurs, but also a chance to discuss the challenges of value creation.

The first Rainmakers Conference this March sold out, with more than 400 people attending to hear the insights and perspectives from entrepreneurs, investors and advisors, and to network with senior figures from across the corporate finance community.

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