The head of private equity firm Alchemy has issued a stinging broadside to
the accountancy trade, citing a ‘complete collapse’ in buyout due dilligence at
the height of the private equity boom.
CIMA’s annual conference, The firms MD John Moulton said: ‘We have seen in
the last two-year bubble [of private equity buyouts] a loss of integrity in the
system and we have seen excess. We have seen a complete collapse in due
dilligence. When many of the processes and controls are not there, you have a
high risk of serious errors and a sporting chance of fraud.’
Moulton also warned City bosses that the private equity model is heading for
significantly lower returns because the schemes that banks underwrite when
companies secure debt are in short supply: ‘The money from Collaterised Loan
Obligation vehicles has now dried up – there simply is no money left. Large
buy-outs are therefore un-fundable at present. I predict an era of significantly
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.