DOCSLIB.ORG

Midlands Dealmakers Awards 25 Years Ago: 1998–2003 5 the Winners, the Deals, the Trends

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Midlands Dealmakers Awards 25 Years Ago: 1998–2003 5 the Winners, the Deals, the Trends ™ 06/08/2019 12:42 19/07/2019 11:38:16 PROMOTIONAL COVER PROMOTIONAL www.midlandsbusinessinsider.com SEPTEMBER 2019 MIDLANDS BUSINESS INSIDER FUNDING FUNDING MORE THAT’S ON YOUR WAVELENGTH VOL.27 NO.9 £10 wavelength a4 front cover.indd 1 SEPTEMBER 2019 midlands businessinsider insider DEALMAKERS 25 | GIFFGAFF’S MARK STANSFELD | TECH 100 | AGILE WORKING | SOUTH KESTEVEN | EAST MIDLAND KEY SITES | CONSTRUCTION & MANUFACTURING SKILLS VOL.27 NO9 EXCELLENCE YEARS OF MBI Sept 2019_PROMO COVER.indd 1 The veterans 9 25 years of achievement? The next generation 31 It’s just the start… How much do you think you are worth? If you are a Midland dealmaker then in review probably a good few hundred million, if you count all the deals done here. The next few pages give just a glimpse of what this community has 1994–1998 3 achieved since the very first Midlands Dealmakers Awards 25 years ago: 1998–2003 5 the winners, the deals, the trends. Over the past 25 years this region 2003–2008 13 has managed to notch up an incredible 18,000 recorded deals, according to my researchers, worth at least – and take a deep breath at this – £421bn. 2008–2013 19 They’re quite astounding figures. 2013–2018 25 And that 18,000 total does not do justice to what the mergers and acquisitions (M&A) sector now regularly achieves outside of the region, because Midland dealmaking has not only grown, it’s evolved. It has matured from a parochial industry to a profession that now operates on a national and international basis, working in well-defined market sectors. And arguably, the best is still to come. While we rightly celebrate the achievements of the past quarter of a decade, there is a new, more inclusive and technologically-aware generation of dealmakers emerging. They’re doing deals in very different ways but are just as hungry for transactions as their predecessors. This supplement is so much more than a historic document detailing past glories: it describes the platform on which one of the Midlands’ most successful professional sectors has been built and still greater achievements will be made. Kurt Jacobs Editor, Midlands Business Insider insider DEALMAKERS AWARDS 2019 | 1 DM p1 leader.indd 1 06/08/2019 13:28 ADVERTISEMENT GET THE HEADLINE SPONSOR DEAL DONE SPONSORS Not all lawyers are the same. We pride ourselves on consistently doing three things: • delivering excellence for our clients; • providing creative solutions to complex legal issues; and • putting innovation at the heart of what we do. Added to being one of the largest corporate finance law teams across the Midlands, this makes us the obvious team to choose when you need to get the deal done. Contact: Ben Turner 03700 864038 [email protected] Alastair Peet 03700 864163 [email protected] Crispin Bridges Webb 03700 865070 [email protected] NETWORKING BOOKLET GIFT SPONSOR SPONSOR DRINKS RECEPTION ENTERTAINMENT SPONSOR SPONSOR www.shoosmiths.co.uk Completing deals, with confidence 2 | insider DEALMAKERS AWARDS 2019 DM p2-3 1994-1998.indd 2 06/08/2019 13:29 1994-1998 review MIDLANDS DEALS BY DEAL TYPE 1994–98 PETER NAYLOR DEALMAKER OF THE YEAR 1998 l Acquisition 1,691 l Buyouts & buy-ins 414 Naylor started his working life as a equity house Gresham, he retired in 2004 draughtsman’s assistant in Northampton, and since then he has been “doing what l Divestment 109 earning £2.50 per week. He qualified retired people do” – as well as becoming a l Flotation 97 as a chartered surveyor in 1976 and, qualified gemmologist and horologist. l Startup 75 after completing an MBA, joined Bank of Naylor says the deals were too long ago Scotland’s corporate division in 1991. In to remember. To jog his memory, they were l Development capital 66 1996 he launched the bank’s Midlands a succession of institutional buyouts (IBOs) l Refinancing 45 Structured Finance Office in Birmingham. including £30m for Kidderminster boat- l Minority stake 42 Naylor says he owes his success as a maker Sealine, £86m for Wellingborough dealmaker to being in the right place at dried fruit and nut supplier Whitworths l Merger 38 the right time as well as having a great and £53m for mechanical handling plant l Others 20 team around him. After five years at private business Alstom Automation International. THE BIG DEALS 1994-1998 25 Years of Dealmaking VALUE (£) DEAL TYPE BIDDER TARGET How we came 5,000,000,000 Demerger National Grid Group to the figures 2,500,000,000 Divestment Department of Transport British Rail All the pie charts and tables on Deal Types, Big Numbers, Big Deals 1,728,342,000 Acquisition Avon Energy Partners Holdings Midlands Electricity and Sectors have been drawn by 1,381,000,000 Divestment At&T Istel AT&T Capital Corp Insider’s research team from figures and stats derived from Experian’s 1,329,628,045 Acquisition Dominion Resources East Midlands Electricity Market IQ database. We’ve concen- 1,325,388,000 Merger Lucas Industries Varity Corp trated on deals where the vendor, buyer or business being invested in 1,300,000,000 Acquisition Williams Holdings Chubb Security was based in the Midlands. 850,000,000 Acquisition BASF Boots Company 825,000,000 Acquisition Stagecoach Holdings Porterbrook Leasing Company 815,000,000 Acquisition Rjb Mining Central & Northern Mining insider DEALMAKERS AWARDS 2019 | 3 DM p2-3 1994-1998.indd 3 06/08/2019 13:29 ADVERTISEMENT CELEBRATING ELAGHMORE Elaghmore is a private investment partnership specialising in transforming company performance. Over more than a decade, the partners have achieved an average 7.6 times return YEARS OF on capital. Focusing on small to mid-cap companies, 25 Elaghmore aims to create strong growth, working closely with INSIDER DEALMAKERS management teams. In 2016, Elaghmore closed the £60 million Elaghmore 1 LP fund, making seven acquisitions so far. The team at Smith Cooper Corporate Finance would like to congratulate Insider for 25 years of Dealmakers. Thank you for the support over the years. Our FY19 deal stats Andy Ducker David Manning Greg Koral David Morley 43 £266m Founding Partner Founding Partner Partner Chairman deals nationally collective deal value th 11 6 DEALS dedicated advisors Experian Financial Adviser ranking Q1 2019 TVS GROUP acquired and brought together three specialist manufacturing firms – SB Components, Priden £75m £6m Engineering, McPhee Mixers largest deal average deal size ALUCRAFT GROUP Ireland’s leading designer, Our international member network manufacturer and installer of has completed 300+ deals. architectural glazing HEXCITE GROUP Darren Hodson comprising Kesslers, Gardners and Birmingham SFD, offering design, build and print Partner display propositions to retail 0121 237 6935 [email protected] Dan Bowtell Nottingham Partner 0115 945 4338 [email protected] Elaghmore John Farnsworth 36 Hamilton Terrace Derby Leamington Spa CV32 4LY Partner Tel: 01926 430077 01332 374419 Email: [email protected] [email protected] Web: www.elaghmore.com LinkedIn: https://www.linkedin.com/ Acquisitions | Disposals | Raising Finance company/elaghmore-partners-llp www.smithcooper.co.uk MBIDM Sept p4-7 19_For 1998-2003.indd Your Consideration 4 Half Pages.indd 77 05/08/201906/08/2019 16:16 13:29 1998-2003 ELAGHMORE review Elaghmore is a private investment partnership specialising in transforming company performance. Over more than a decade, the partners have achieved an average 7.6 times return on capital. Focusing on small to mid-cap companies, Elaghmore aims to create strong growth, working closely with management teams. In 2016, Elaghmore closed the £60 million MIDLANDS DEALS BY Elaghmore 1 LP fund, making seven acquisitions so far. DEAL TYPE 1998-03 Andy Ducker David Manning Greg Koral David Morley Founding Partner Founding Partner Partner Chairman l Acquisition 2,247 l Buyouts & buy-ins 489 l Development capital 102 DARRYL EALES DEALMAKER OF THE YEAR 2000 l Share buy-back 99 l Merger 83 DEALS From finance to football to formalities, management teams and is also chairman l Minority stake 81 Eales has had arguably the most eclectic of the Entrepreneurial Exchange. l Startup 70 career of all former dealmakers. Eales has been involved in scores of l Flotation 65 TVS GROUP During his 27 years with LDC, starting in deals, but notable transactions in the l Divestment 63 l Refinancing 51 acquired and brought together Birmingham, he rose to managing director Midlands include the £70m US acquisition l Reverse takeover 20 three specialist manufacturing and then chief executive, overseeing of Birmingham cable maker Dundas firms – SB Components, Priden the private equity (PE) firm’s growth to a Group, the £30m buy-in into Kidderminster Engineering, McPhee Mixers powerhouse investing £2.6bn in more than boatmaker Sealine International and 160 businesses. £27.5m acquisition of Birmingham control MIDLANDS DEALS BY ALUCRAFT GROUP Standing down as chief executive in valves and boiler maker A&J Gummers. Ireland’s leading designer, SECTOR 1998-03 2014, he took control of Oxford United as “With quality advisers and quality investors, manufacturer and installer of majority owner and chairman during the there is no reason why the Midlands architectural glazing club’s rise to League One and two trips to should not be a leading dealmaking hub HEXCITE GROUP Wembley. both in the UK and internationally,” he says. comprising Kesslers, Gardners and After selling to Sumrith “Tiger” “The Midlands remains ideally placed SFD, offering design, build and print Thanakarnjanasuth last year, he became to continue to be both a national and display propositions to retail chairman and co-owner of National international player. League Solihull Moors who promptly “Dealmaking is a state of mind and achieved their highest ever position with needs combinations of people who excel ambitious aspirations to reach the Football together and bring complementary skills League.
Load more

Recommended publications
  • Natwest Markets N.V. Annual Report and Accounts 2020 Financial Review
    NatWest Markets N.V. Annual Report and Accounts 2020 Financial Review Page Description of business Financial review NWM N.V., a licensed bank, operates as an investment banking firm serving corporates and financial institutions in the European Economic Presentation of information 2 Area (‘EEA’). NWM N.V. offers financing and risk solutions which 2 Description of business includes debt capital markets and risk management, as well as trading 2 Performance overview and flow sales that provides liquidity and risk management in rates, Impact of COVID-19 3 currencies, credit, and securitised products. NWM N.V. is based in Chairman's statement 4 Amsterdam with branches authorised in London, Dublin, Frankfurt, Summary consolidated income statement 5 Madrid, Milan, Paris and Stockholm. Consolidated balance sheet 6 On 1 January 2017, due to the balance sheet reduction, RBSH 7 Top and emerging risks Group’s regulation in the Netherlands, and supervision responsibilities, Climate-related disclosures 8 transferred from the European Central Bank (ECB), under the Single Risk and capital management 11 Supervisory Mechanism. The joint Supervisory Team comprising ECB Corporate governance 43 and De Nederlandsche Bank (DNB) conducted the day-to-day Financial statements prudential supervision oversight, back to DNB. The Netherlands Authority for the Financial Markets, Autoriteit Financiële Markten Consolidated income statement 52 (AFM), is responsible for the conduct supervision. Consolidated statement of comprehensive income 52 Consolidated balance sheet 53 UK ring-fencing legislation Consolidated statement of changes in equity 54 The UK ring-fencing legislation required the separation of essential Consolidated cash flow statement 55 banking services from investment banking services from 1 January Accounting policies 56 2019.
    [Show full text]
  • Industry Analysis
    Investment Banks “Teaser” Industry Report Industry Analysis Investment Banks Q1 2012 Industry Overview Raising capital by underwriting and acting on behalf of individuals, corporations, and governments in the issuance of securities is the main thrust of investment banks. They also assist companies involved in mergers and acquisitions (M&As) and provide ancillary services like market making, derivatives trading, fixed income instruments, foreign exchange, commodities, and equity securities. Investment banks bannered the 2008 global financial and economic crisis, with U.S. investment bank Bear Sterns saved by J.P. Morgan Chase. Later in the year, Lehman Brothers filed for bankruptcy due to liquidity, leverage, and losses, as Merrill Lynch narrowly escaped such a fate with its purchase by Bank of America. Lehman Brothers was the largest bankruptcy in history at the time, with liabilities of more than $600 billion. Such unprecedented events caused panic in world markets, sending bonds, equities, and other assets into a severe decline. Morgan Stanley survived with an investment from Japan-based Mitsubishi UFJ Financial Group, and Goldman Sachs took a major investment from Warren Buffet’s Berkshire Hathaway. All major financial players took large financial bailouts from the U.S. government. Post-Lehman Brothers, both American and British banks took a huge beating. In the U.K., hundreds of billions of pounds of public money was provided to support HBOS, Lloyds, and Royal Bank of Scotland (RBS). Upon the government’s pressure, Lloyds took over HBOS to create Lloyds Banking Group and after three years, taxpayers end 2011 nursing a loss on their stake of almost £40 billion ($62.4 billion).
    [Show full text]
  • South Western Franchise Agreement
    _____ September 2006 THE SECRETARY OF STATE FOR TRANSPORT and STAGECOACH SOUTH WESTERN TRAINS LIMITED SOUTH WESTERN FRANCHISE AGREEMENT incorporating by reference the National Rail Franchise Terms (Second Edition) CONTENTS CLAUSE PAGE 1. INTERPRETATION AND DEFINITIONS ............................................................................. 4 2. COMMENCEMENT .......................................................................................................... 5 3. TERM 5 4. GENERAL OBLIGATIONS ................................................................................................ 6 5. SPECIFIC OBLIGATIONS ................................................................................................. 6 6. COMMITTED OBLIGATIONS ......................................................................................... 48 7. SUPPLEMENTAL TERMS ............................................................................................... 48 8. RECALIBRATION OF THE BENCHMARKS ...................................................................... 49 9. DOCUMENTS IN THE AGREED TERMS .......................................................................... 49 10. ENTIRE AGREEMENT ................................................................................................... 49 APPENDIX 1 ........................................................................................................................... 52 Secretary of State Risk Assumptions (Clause 5.1(y)) ................................................. 52 APPENDIX
    [Show full text]
  • Sharp -V- Blank (HBOS) Judgment
    Neutral Citation Number: [2019] EWHC 3078 (Ch) Case Nos: HC-2014-000292 HC-2014-001010 HC-2014-001387 HC-2014-001388 HC-2014-001389 HC-2015-000103 HC-2015-000105 IN THE HIGH COURT OF JUSTICE CHANCERY DIVISION Royal Courts of Justice Strand, London, WC2A 2LL Date: 15/11/2019 Before: SIR ALASTAIR NORRIS - - - - - - - - - - - - - - - - - - - - - Between: JOHN MICHAEL SHARP Claimants And the other Claimants listed in the GLO Register - and - (1) SIR MAURICE VICTOR BLANK Defendant (2) JOHN ERIC DANIELS (3) TIMOTHY TOOKEY (4) HELEN WEIR (5) GEORGE TRUETT TATE (6) LLOYDS BANKING GROUP PLC - - - - - - - - - - - - - - - - - - - - - Richard Hill QC, Sebastian Isaac, Jack Rivett and Lara Hassell-Hart (instructed by Harcus Sinclair UK Limited) for the Claimants Helen Davies QC, Tony Singla and Kyle Lawson (instructed by Herbert Smith Freehills LLP) for the Defendants Hearing dates: 17-20, 23-27, 30-31 October 2017; 1-2, 6-9, 13-17,20, 22-23, 27, 29-30 November 2017, 1, 11-15, 18-21 December 2017, 12, 16-19, 22-26, 29-31 January 2018, 1-2, 5- 6, 8, 28 February 2018, 1-2 and 5 March 2018 - - - - - - - - - - - - - - - - - - - - - Approved Judgment I direct that pursuant to CPR PD 39A para 6.1 no official shorthand note shall be taken of this Judgment and that copies of this version as handed down may be treated as authentic. ............................. INDEX: The task in hand 1 The landscape in broad strokes 8 The claim in outline. 29 The legal basis for the claim 41 The factual witnesses. 43 The expert witnesses 59 The facts: the emerging financial
    [Show full text]
  • Lloyds TSB/HBOS Transaction Customers Will See Greater Continuity of HBOS Products, Services and Brands Than Would Otherwise Be the Case
    Anticipated acquisition by Lloyds TSB plc of HBOS plc Report to the Secretary of State for Business Enterprise and Regulatory Reform 24 October 2008 Contents I OVERVIEW ................................................................................................ 4 Conclusions ............................................................................................... 4 Merger jurisdiction ...................................................................................... 5 Substantive competition assessment ............................................................. 5 Remedies................................................................................................... 7 Public interest consideration ......................................................................... 7 II PROCEDURAL OVERVIEW ........................................................................... 8 III PARTIES AND TRANSACTION.....................................................................10 The parties................................................................................................10 Transaction rationale ..................................................................................10 IV JURISDICTION AND LEGAL TEST ................................................................11 V THE COUNTERFACTUAL ............................................................................13 Introduction to the OFT's general approach to the counterfactual.....................13 The appropriate counterfactual in this case ...................................................14
    [Show full text]
  • Rating Action, Barclays Bank UK
    Rating Action: Moody's takes rating actions on Barclays, Lloyds, Santander UK, Nationwide and Close Brothers, following update to banks methodology 13 Jul 2021 London, 13 July 2021 -- Moody's Investors Service (Moody's) has today taken rating actions on Barclays, Lloyds, Santander UK and Close Brothers banking groups and on Nationwide Building Society, including the upgrade of the long-term senior ratings of Lloyds Banking Group plc and Close Brothers Group plc. The rating actions were driven by revisions to Moody's Advanced Loss Given Failure (Advanced LGF) framework, which is applied to banks operating in jurisdictions with Operational Resolution Regimes, following the publication of Moody's updated Banks Methodology on 9 July 2021. This methodology is available at this link: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1269625 . A full list of affected ratings and assessments can be found at the end of this Press Release. RATINGS RATIONALE Today's rating actions were driven by revisions to the Advanced Loss Given Failure framework within Moody's updated Banks Methodology: a revised notching guidance table, with thresholds at lower levels of subordination and volume in the liability structure have been applied to the UK banks and Additional Tier 1 (AT1) securities issued by banks domiciled in the UK have been included in the Advanced LGF framework, eliminating the previous analytical distinction between those high trigger instruments that were deemed to provide equity-like absorption of losses before the point of failure and other AT1 securities. Moody's removal of equity credit for high trigger Additional Tier 1 (AT1) instruments from banks' going concern capital means that affected banks have reduced capacity to absorb unexpected losses before the point of failure, everything else being equal.
    [Show full text]
  • The FRC's Enquiries and Investigation of KPMG's 2007 and 2008 Audits Of
    Report Professional discipline Financial Reporting Council November 2017 The FRC’s enquiries and investigation of KPMG’s 2007 and 2008 audits of HBOS The FRC’s mission is to promote transparency and integrity in business. The FRC sets the UK Corporate Governance and Stewardship Codes and UK standards for accounting and actuarial work; monitors and takes action to promote the quality of corporate reporting; and operates independent enforcement arrangements for accountants and actuaries. As the Competent Authority for audit in the UK the FRC sets auditing and ethical standards and monitors and enforces audit quality. The FRC does not accept any liability to any party for any loss, damage or costs howsoever arising, whether directly or indirectly, whether in contract, tort or otherwise from any action or decision taken (or not taken) as a result of any person relying on or otherwise using this document or arising from any omission from it. © The Financial Reporting Council Limited 2017 The Financial Reporting Council Limited is a company limited by guarantee. Registered in England number 2486368. Registered Offi ce: 8th Floor, 125 London Wall, London EC2Y 5AS Contents Page 1 Executive Summary ........................................................................................................ 3 2 Summary Background: HBOS and the contemporaneous banking and financial conditions ........................................................................................................................ 6 3 Accounting Requirements and Auditing
    [Show full text]
  • ANNUAL REPORT and ACCOUNTS 1999 Contents
    ANNUAL REPORT AND ACCOUNTS 1999 Contents Finance director's review 1 Consolidated balance sheet 19 Directors' report 8 Company balance sheet 20 Corporate governance 11 Consolidated cash flow statement 21 Remuneration report 15 Additional statements 22 Auditors' report 17 Notes to the accounts 23 Consolidated profit and loss account 18 Financial highlights 4 Total turnover »1,548.4 million, up 15% 4 Total operating profit of »274.7 million, up 27% 4 Profit before tax of »219.9 million, up 39%* 4 Basic earnings per share of 12p, up 26% 4 Adjusted earnings per share of 12.7p, up 32%* 4 Final proposed dividend for the year of 2.0p 4 Total dividend for the year of 3.0p (net), up 25% 4 Free cash flow of »279.8 million 4 Capital investment of »263.1 million *before goodwill amortisation and exceptional items Turnover Profit before tax Earnings per share in » million in » million in pence Important Note This document contains detailed financial and statutory information for the group for the year ended 30 April 1999. It should, however, be read in conjunction with the Annual Review which contains the Chairman's statement and the Chief Executive's review. Finance director's review The financial results demonstrate the operational improvements being made and the strong contributions from recent acquisitions. Turnover grew 15% across all of our businesses in 1999, 4% before acquisitions and disposals in the current year. Pre-taxprofits before taking account of goodwill amortisation and exceptional items have increased 39%. Keith Cochrane, Group Finance Director Trading results Adjusted earnings per share before taking account of Operating profits were »274.7 million compared to goodwill amortisation and exceptional items grew 32% »216.3 million in 1998.
    [Show full text]
  • Disclaimer - Important
    DISCLAIMER - IMPORTANT Recommended acquisition of HBOS plc (“HBOS”) by Lloyds TSB Group plc (“Lloyds TSB”) (the “Acquisition”) NOTE: AN ELECTRONIC VERSION OF THE ANNOUNCEMENT IS BEING MADE AVAILABLE ON THIS WEBSITE BY LLOYDS TSB IN GOOD FAITH AND FOR INFORMATION PURPOSES ONLY. Access to the Announcement Please read this notice carefully - it applies to all persons who view this part of the website and, depending upon who you are and where you live, it may affect your rights. For regulatory reasons, we have to ensure you are aware of the appropriate regulations for the country which you are in. By viewing this announcement you agree to comply/be bound by the terms of this disclaimer. Overseas Persons The availability of the Acquisition to persons who are not resident in the United Kingdom may be affected by the laws of the relevant jurisdictions in which they are located. Persons who are not resident in the United Kingdom should inform themselves of, and observe, any applicable requirements. Forward looking statements This document includes certain “forward looking statements” with respect to the business, strategy and plans of Lloyds TSB Group and HBOS and their respective expectations relating to the Acquisition and their future financial condition and performance. Statements that are not historical facts, including statements about Lloyds TSB Group’s or HBOS’s or their respective management’s beliefs and expectations, are forward looking statements. Words such as “believes”, “anticipates”, “estimates”, “expects”, “intends”, “aims”, “potential”, “will”, “would”, “could”, “considered”, “likely”, “estimate” and variations of these words and similar future or conditional expressions are intended to identify forward looking statements but are not the exclusive means of identifying such statements.
    [Show full text]
  • The Humbling of the Scottish Banking Industry During the Financial Crisis: Hybris, Financialization and Some Aristotelian Responses
    THE HUMBLING OF THE SCOTTISH BANKING INDUSTRY DURING THE FINANCIAL CRISIS: HYBRIS, FINANCIALIZATION AND SOME ARISTOTELIAN RESPONSES. OWEN KELLY, UNIVERSITY OF EDINBURGH Influencing the world since 1583 OUTLINE • Summarize facts of the cases • The climate of financialization • Hybris and hubris – differing conceptions • Aristotle • Conclusions BANK OF SCOTLAND (HBOS) • Formed from Halifax Building Society and Bank of Scotland – a 'mutual' lost to the economy • Sales culture • Financial markets and trading dominate • Excessive pay (like whole sector) • Bad banking practice • Bailout cost £30 billion and a degree of nationalisation • Taken over by Lloyds – Bank of Scotland exists as subsidiary • Investigation damning but no prosecutions ROYAL BANK OF SCOTLAND (RBS) • Aggressive expansion in UK, taking over other banks • Rapid international growth • "An international bank that happens to be based in Scotland" • Biggest bank in the world! • Bad banking practice • Bailout cost £46 billion and a form of nationalisation • No prosecutions • Legal cases and public ownership continue FINANCIALIZATION • "...the substitution of trading and transactions for relationships...the restructuring of finance businesses.....broader economic effects on stability and inequality......[linked to] market fundamentalism....the exaltation of the role of the trader" (Kay, 2015) • Relationships: Gemeinschaft to Gesellschaft • Restructuring – move away from mutuals and partnerships • Risk becomes financialized and 'managed' • Exchange value dominates Fisher's 'misinterpretation'
    [Show full text]
  • Getting on the Right Track
    spotlight LEVERAGED FINANCE GETTING ON THE RIGHT TRACK JOANNA HAWKES OF ANGEL TRAINS EXPLAINS SOME OF THE ISSUES FACING THE ROLLING STOCK LESSOR IN THE FUNDING AND LEASING OF TRAINS TO THE OPERATING COMPANIES. he purpose of this article is to outline the issues facing the rolling stock lessor, both from the perspective of financing the purchase of rolling stock, as well as leasing it to the trains operating companies (Tocs). It focuses mainly on the Tactivities and experiences of Angel Trains (Angel). BACKGROUND. The three rolling stock leasing companies (Roscos) Angel, Porterbrook Leasing and HSBC Rail (formerly Eversholt tandem with extended and renegotiated franchises. As the market Leasing) were originally formed in 1994 out of the privatisation of has developed, lease contracts have become more bespoke and very British Rail. Their business is owning, maintaining and leasing rolling heavily negotiated. stock. At the time of public offer, fears of re-nationalisation under For a number of reasons – partly strategic, partly historic – Angel an incoming Labour government were high. Offers to buy from the Trains finances about 80% of its portfolio in the banking market, finance sector were limited and consequently two of the three were rather than via its parent. Figure 2 illustrates the current simplified the subject of management buy outs. Over subsequent years, industry structure. however, Roscos have migrated towards their natural home for UK leasing companies, and each has become a subsidiary of a big TYPES OF LEASES. There are a number of variations in the types of financial institution: Royal Bank of Scotland (Angel), Abbey National lease structures, but generally capital rentals are fixed.
    [Show full text]
  • Lender of Last Resort Operations During the Financial Crisis: Seven Practical Lessons from the United Kingdom
    Lender of last resort operations during the financial crisis: seven practical lessons from the United Kingdom Andrew Hauser1 Abstract Drawing on the recommendations of the many public reviews of the UK’s experience with lender of last resort (LOLR) operations during the financial crisis, this paper identifies seven practical lessons of wider interest to the central banking community and others. First, lender of last resort operations cannot tackle moral hazard single-handedly: effective alignment of incentives also requires strong microprudential liquid asset requirements and a credible bank resolution regime. Second, the lender of last resort must have a close understanding of the firms to which it might lend, the markets in which they operate and the collateral they have available. Third, ambiguity over the circumstances and terms of LOLR operations may not be as constructive as previously thought: it does not appear to have been effective in limiting moral hazard pre-crisis in the UK, and led to excessive swings in market expectations about the Bank’s willingness to lend. Fourth, as a result, the UK has concluded that the LOLR regime should be richly specified, and embedded in a largely public framework. Fifth, central banks should only lend to solvent institutions – but as a practical matter, illiquidity and insolvency can be hard to distinguish in the midst of a crisis. That requires careful definition of the respective responsibilities of the central bank and the fiscal authority. Sixth, central banks should do all they can to reduce unnecessary stigma associated with their LOLR facilities, whilst recognising that some level of stigma is probably unavoidable.
    [Show full text]