KPMG takes this year’s Corporate Finance Deal of the Year Award for its
expert work in sealing the acquisition of the motor insurance division of
Provident Financial by GMAC Insurance Services, the financial arm of general
Armed with knowledge that GMAC was looking to grow and diversify in the UK
and Europe, KPMG seized the opportunity when the firm learned of the proposed
sale of Provident Financial in January 2007.
After undertaking the research, KPMG quickly surmised it had to move quickly.
Firstly to avoid a bidding war that could cause GMAC to pay over the odds, and
secondly because Provident itself was looking for a swift transaction – but not
any price. It wanted cultural fit and certainty of funding.
KPMG had to fight competition to represent GMAC, largely by demonstrating
initiative in bringing opportunities to the notice of the company and for
demonstrating a thorough market knowledge.
KPMG moved to put together a series of models looking at insurance, tax and
corporate finance, which gave GMAC the chance to project future revenues and
capital structures. The next step was to set up a number of meetings with
Provident’s management committee, the body that would play a major role in
determining the outcome of the deal.
Our judges said: ‘KPMG’s work on acquiring Provident Financial for GMAC was a
huge deal that beat the competition from the investment banks. They took the
initiative, and the pace at which they got the deal through was extremely
impressive. KPMG’s knowledge of the market was clearly second to none.’
The £170m deal was finally accepted on 9 May 2007, just five months after the
ball was set rolling. GMAC paid a fair price at just a few million more than the
nearest rival. It also proved to be the largest insurance deal an accounting
firm had advised on at the time.
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.