Private equity company’s are facing the possibility of having to stop work on current deals as they review the effects of new tax rules that end tax relief on loan finance.
A report by the Centre for Management Buy-out Research predicts that the £5bn worth of deals funded by private equity in the first quarter could be facing a 10% reduction in returns because of the new rules, introduced during last week’s Budget.
This would see private equity businesses cut the prices they are prepared to pay for targets, according to The Financial Times
‘In terms of how this is likely to affect deals which are currently work in progress, there is likely to be hiatus with private equity teams downing tools,’ said Tom Lamb, managing director of Barclays private equity.
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.