Reasons to be cheerful so shed the malaise

A round up of activity, the largest IPO of the year so far and a food float on the blocks

Hello Rainmakers,

Something is stirring on the public markets this week.

And touch wood, there is nothing like the same kind of pre-Budget frenzy we witnessed last October.

And there were genuine calls to positivity at our two Rainmakers lunches yesterday.

This is free to all who have signed up, however Rainmakers subscribers get two unique pieces a week, but also full access to our back catalogue of investigations, scoops, and insights, including updates from The Secret Investor, interviews with entrepreneurs, and the leaders from VC and PE investors like Endless, and River Capital, Foresight, Mercia, Puma and LDC.

Our Rainmakers Lunch in Birmingham yesterday saw award winners Chris Handy from LDC and Richard Swann from Inflexion send a message to advisers to proactively identify and address the challenges facing their clients, and “get deals flowing”

Richard Swann also critiqued a “general malaise around the West Midlands which we never seem to have grown out of”.

He emphasised celebrating the wins and recognising the region’s achievements in the face of negative stereotypes and perceptions.

A 100 miles north, at the same time, our North West Rainmaker of the Year, Michael Loudon (second right) brought some of that famous Manchester swagger to our lunch at the splendid Manchester Hall, despite hailing originally from Scotland.

“There’s lots of reasons to be positive,” he said. “I’m an optimist, and you’ve got to be an optimist when it comes to corporate finance generally. But no, what we see in the market is what really works, where you’re patient, you take time, you don’t rush a client into a sale, work out what the right angles are, and it’s all the usual stuff.

“But when we see it go wrong, it’s often because someone’s overselling or getting kind of over aggressive and applying bull market behaviours. It has been a bear market for the last 20 years, ultimately.”

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That steel and focus has powered the IPO of The Beauty Tech Group, located conveniently in deepest Real Housewives of Cheshire territory, which commenced trading this morning at a valuation of £300m and a price per share of 279p.

The offer of £106.5m worth of share represents 35.5% of the total share capital including £29m worth of new shares. In the first couple of hours the priced ticked up nicely, hitting 285p by 8.15am.

Analysts and market commentators have lauded the approach taken by Laurence Newman, founder and CEO of The Beauty Tech Group, who said the IPO provides the “perfect platform to increase awareness” of their three distinct, premium brands and take the business to the next level, while delivering sustained and profitable growth. Newman and his team have also locked in key executives and recruited experienced board directors.

Rainmakers columnist The Secret Investor said this week on our premium platform: “It is also encouraging to see that as a region we are keen to learn from our mistakes and bring in genuine knowhow and experience, with Beauty Tech seemingly building a board of directors that aren’t simply there to tick the requirements of the public markets, but have first hand experience of the ups and downs that come with operating in the public eye.

Dr Mark Payton, Chief Executive Officer of Mercia Asset Management PLC, which manages the Northern VCTs’ long-term investment in The Beauty Tech Group said the successful IPO is “a great example of the potential of the businesses we have in the UK’s regions” and demonstrated “the power of venture capital” in helping them scale to become international success stories.

“This is a case study for what the Mansion House Compact can achieve: supportive, long-term UK capital backing ambitious founders and management teams to drive the next generation of domestic champions. Our congratulations to the management team and advisers on this morning’s successful flotation,” he said.

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It isn’t profile that Princes needs, but the Liverpool-headquartered food group has signalled a float which will also give it some heft when it comes to making further acquisitions.

Those of us raised on beef paste butties know all too well the range of products they own. Though high quality Napolina canned tomatoes are more our thing these days.

Princes Group CEO, Simon Harrison, nodded towards the organic growth and focused M&A that built a formidable house of brands, including Princes, Napolina, Branston, Batchelors and Crisp’N’Dry but also said a listing is “a natural next step” to providing “access to capital to execute our M&A ambitions, it will provide a platform to accelerate growth by expanding our product portfolio and expertise, extending our international reach, and attracting top talent as we continue building for the future.”

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Case closed on a major Midlands legal move, as NBB Law has acquired Waldrons Solicitors, a firm with roots dating back to 1867.

The acquisition isn’t just about growth; it’s about keeping Waldrons’ legacy in safe hands while adding fresh resources, expertise, and innovation.

NBB now boasts 130 staff, including 70 lawyers across eight offices, plenty of legal firepower.

And with Waldrons’ long Black Country heritage and reputation for excellence, clients can expect business as usual, only bigger and better.

“This is a defining moment,” said NBB’s Rob Bhol and Paul Nicholls. “Taking on the custodianship of a firm established in 1867 is both a privilege and a responsibility.”

With the ink dry, both firms are confident the future is in order.

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Streets has chalked up another big addition to its books, acquiring Bude-based accountancy practice Metherell Gard.

The move sees the Lincoln-headquartered accountancy group expand its footprint to more than 30 offices nationwide, proving it knows how to add things up when it comes to growth.

Metherell Gard, established back in the 1940s, is the largest practice in the Bude area with a 20-strong team and four directors.

Its directors say the deal offers continuity for clients while giving staff wider opportunities as part of a bigger, collaborative group.

Paul Tutin, chairman and managing partner at Streets, said the merger “perfectly complements” the firm’s South West presence and ensures clients can count on the same trusted service with the added benefit of wider expertise.

Metherell Gard will continue to operate from its existing Bude office, so for local businesses, it’s business as usual, just with more strength behind the numbers.

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Discussions are at an advanced stage at the UK’s two largest independent retail co-operatives – The Midcounties Co-operative and Central Co-op – about a merger that would create a ‘Society for the future’.

If approved by members, the combined Society would unite over one million members, 13,000 staff, and annual sales of £1.8bn, with a portfolio of specialist businesses including more than 500 food stores, 170 funeral homes, 70 travel agencies, and almost 50 nurseries, as well as more than 500 investment properties across the UK.

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A veterinary practice established in Doncaster in 2011 has got its claws into an ambitious programme of growth, having already expanded to comprise 12 locations and more than 270 staff. The Pet Vet has secured £13m worth of new finance from HSBC thanks to a deal led by Castle Square Corporate Finance. It should enable the business to open additional branches and unlock technology to offer people even more advanced treatments for their animals.

The Pet Vet accelerated with its acquisition of The Vet (Quality Pet Care Limited) back in 2022 and having grown from its South Yorkshire roots now also boasts bases in Warrington, Portsmouth, Southampton, Liverpool, Nottingham and London. Director Dr Mel Fuller says the business has a “tried and tested” model which will serve as a blueprint for establishing new surgeries.

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At a lively Rainmakers lunch at Manchester Hall yesterday, three award winning Rainmakers reflected on their success and what makes Manchester a magnet for talent and opportunity.

Claire Alvarez of Foresight Group highlighted the region’s unique sense of community and collaboration, something that she says percolates through Foresight’s own culture. “A lot of work’s gone into making it really collegiate, a collaborative culture, so we don’t work as office silos,” she explained. “We make sure we work across offices… working together, talking about what deals we’ve got on, talking about exits, things like that. It’s culture, thanks to that low ego point and working together, that’s really important.”

Alvarez also agreed that the North as a whole has created “a really nice community to work in,” where trusted relationships with advisors and peers help drive success.

Greg Holmes of Palatine, also a private equity investor, echoed the importance of culture and local roots. “For me, it’s always just trying to find a northern home for that,” he said, describing his career journey from home in Southport to PwC in Manchester, and then via NorthEdge to his current berth.

“It’s always about that cultural fit, because we’re a team of teams… bringing in a new person, you want different skill sets, different experience, different personalities. Ultimately, it’s got to be a good fit.”

Michael Loudon of Clearwater, who relocated from London, but is originally from Scotland, spoke of Manchester’s vibrancy and potential. “I’ve always loved Manchester… so much going on up here, like the potential of the city. You can see it today. It changes every year, every week, in terms of skyline,” he said. Loudon also credited Clearwater’s strong culture for its success: “It’s got to be the centre opening, isn’t it? Culture… we work with good clients, and ultimately, we work in a market where you’re working with real people time and such job satisfaction there.”

Loudon summed up the region’s appeal, noting that the North West community is “as tight as it gets,” with “the highest quality people serving and that’s the reason for themselves.”

To conclude the panellists shared their reasons for optimism. Alvarez pointed to the “small business community” and the responsibility to “keep our pensioners happy.” Holmes noted, “We have £67 million to deploy over two and a half, three years, we have got to be invested in purposeful businesses across the education, healthcare and environmental sectors.”

Loudon concluded with wise counsel on how to deal with present market conditions.

“There’s lots of reasons to be positive,” he said. “I’m an optimist, and you’ve got to be an optimist when it comes to corporate finance generally. But no, what we see in the market is what really works, where you’re patient, you take time, you don’t rush a client into a sale, work out what the right angles are, and it’s all the usual stuff.

“But when we see it go wrong, it’s often because someone’s overselling or getting kind of over aggressive and applying bull market behaviours. It has been a bear market for the last 20 years, ultimately.”

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The cream of the West Midlands corporate finance community attended our Rainmakers Lunch in Birmingham yesterday with award winners Chris Handy from LDC and Richard Swann from Inflexion.

Chris urged financial advisors to proactively identify and address the challenges facing their clients, and “get deals flowing” in order to get businesses the help they need in a timely manner, regardless of external pressures on the market. Richard, meanwhile, said “We have a general malaise around the West Midlands which we never seem to have grown out of”. He emphasised celebrating the wins and recognising the region’s achievements in the face of negative stereotypes and perceptions.

We were joined by a crowd of vibrant, engaged readers who were able to have a relaxed afternoon, with discussions around market conditions dotted with more informal conversation.

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We’re bringing the Rainmaker Awards back to the East Midlands after a hugely successful first year in 2024.

The Rainmaker Awards will bring together the East Midlands deals community to celebrate the best deals and teams from the past 12 months, as voted for by the corporate finance community themselves in a one firm, one vote system.

The casual dress code will swap the traditional tuxedos and long speeches for an evening that focuses on recognising and celebrating the best work from the year.

The night will provide an opportunity to network with the leading individuals and firms in the region.

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