A starting point is that management need to get their macro analysis right. Any sector needs to have the right conditions and a consistent approach. The four main areas to consider are:

• market stability and in particular pricing issues
• product and customer synergies
• operational overlaps
• supplier fragmentation

With the pricing issue for instance, price volatility can make modelling and forecasting the benefits of any acquisitions more problematic whilst supplier fragmentation means that consolidation offers real cost saving and service enhancement benefits.

Management must develop a coherent strategy for its acquisitions. Buy and builds work best when the approach supports strategic growth that enhances a services or product offering to an existing customer base from which additional commercial value can be obtained, or provides a compelling offer to a new customer base.

Having decided on a strategy, management have to then decide how to finance it, consider their best funding options and put together an acquisition finance package for companies pursuing a buy and build strategy.

In implementing the strategy it is important to ensure that the right companies that are being targeted. Often management can be dazzled by companies with good brands or reputations in their sector, or those that are growing quickly, perhaps in the hope of discovering what business alchemy they have conjured up to emulate their success instead of focusing on companies that will really improve their service.

Once a company has been acquired it is important to focus on developing a chemistry with the incumbent management team. Don’t to assume their trust and confidence, but be sure to engage early, inform them on any outline plans and consider their thoughts and opinions. Transparency and trust wins their support for the strategy.

Plenty of pitfalls exist in implementing a buy-and-build, but if companies keep these essential factors in mind they should reap the considerable rewards such a strategy can deliver.

Notes

LDC is a supporter of Buy and Build opportunities. Over the past 24 months the LDC team has supported a number of ‘Buy and Build proposals – including Angel Springs, EDM, Microlease and Kimberly Access.

On the 30th January at 11.00am the Sara G capsized.

Its crew included Captain Matt Craughwell, Ian Rowe, Aodhan Kelly, Simon Brown, Yaacov Mutnikas and Mark Beaumont – all six members safely exited the overturned boat.

Sara G was hit by a large wave 1.5 minutes before the rowers completed their shift change which was performed on a two hours on – two hours off basis. The wave rotated the vessel 180 degrees causing it to immediately take on water causing it to capsize within ten seconds.

In the next fifteen minutes the crew secured the life raft and attached it to the boat. They set-off their alerting alarms which initiated a response from Falmouth Coast Guard.

The crew did try to recover the vessel but due to the speed of the water retention, this proved unsuccessful.

The crew spent approximately three hours recovering on the raft before Matthew Craughwell and Mark Beaumont returned to the vessel to recover equipment to aid the rescue attempt.

At 1.10am on the 31st, the crew were rescued by the Nord Taipei, a Panamanian-flagged cargo ship and proceeded to Gibraltar where they arrived safely on February 9. 

The crew were magnificent throughout their record attempt and in the professional way they handled an extremely stressful and life threatening situation. The Atlantic Row is one of the world’s greatest physical challenges and ultimately they were at the mercy of the unpredictable nature of the sea which unfortunately resulted in the vessel capsizing.

Everyone at LDC sends the team their best wishes, our admiration for your efforts and professionalism remains undiminished.

By mid-2012 we do believe there will be an increase in demand for development capital, particularly among mid-market companies, triggering some investment competition from funds, many of which have been sitting on cash for the past few years waiting for a propitious moment to re-enter the market.

Businesses with ambitious management are increasingly eager to approach private equity houses for management buyouts largely because the economic landscape in 2011 proved far less rosy than expected. Moreover, some businesses are not convinced that holding onto their assets will necessarily increase revenue further down the line. Therefore, even if there isn’t significant improvement in economic conditions throughout the first half of 2012, many businesses will still press ahead to pursue transactions as the year progresses.

While the proportion of deals led by private equity firms last year seemed to diminish in favour of corporate trade buyers, we believe this will be reversed in 2012. Corporates became increasingly competitive in the mid-market acquisitions market during 2010 and 2011. Just as there was a decline in availability of cheap debt and reduced levels of leverage accepted by lenders in buyout deals, corporates which had strengthened their balance sheets during the financial crisis emerged as more competitive rivals in the hunt for deal opportunities.

Sharp deterioration in business confidence since the summer has, however, forced many would-be trade buyers to become cash hoarders once again, leaving an opportunity in early 2012 for forward-looking private equity firms to regain initiative and invest in growing businesses led by strong management.

In terms of exits, there is no evidence to suggest that the volume of transactions will dwindle in 2012. Over the next 18- to 24-month period we expect a flurry of potential exits as mid-market private equity strengthens. While the exit environment will remain somewhat constrained because of continuing uncertainties in the global economic environment, good businesses with proven management will still attract new finance and ownership.

Note – In 2011 LDC completed 17 new business transactions investing over £300million of equity, and in addition committed over £60million in two funds, and supported a number of companies with their acquisition and ‘buy and build’ programmes. LDC’s most recent transaction was the MBO of Pertemps Network Group.

Earlier this week the UK’s Court of Appeal upheld a High Court ruling that the government cuts to the feed in tariff for solar projects was illegal. At first glance this appears to be a victory for the solar industry – cue much cheering from solar companies and supporters of renewable energy and all things green.

And yet….and yet, the response overall is fairly muted. And, I hate to say it, perhaps rightly so. 

When one stands back and surveys what has been achieved, there is sadly little to celebrate: the reduction in the Feed in Tariff or “FiT” will still take place from 3^rd March; there will be little opportunity to ramp-up new installations between now and then; the industry which sprung up on the back of the original, attractive, FiT levels has already packed its bags, de-camped and gone away; and, most damaging of all, the UK’s reputation as a safe place for renewable energy companies to invest in, has already been severely damaged, if not shattered.

Perhaps there is also even worse news: from reading the detail of the ruling, it is important to note that the Court of Appeal did not opine on whether the reduction of the FiT was too much (50% for the most attractive rates), nor that the suddenness of the reduction was wrong (it took place while the Department for Energy and Climate Change (“DECC”) was still consulting on future tariff levels), nor even that it was retrospective. No, what was illegal was that Parliament had not made any allowance in the Energy Act to empower the Secretary of State to make the changes when he did.

What this says to me is that the government was caught out by a technicality in the drafting of the law. From my experience of contract drafting, once there is found to be a flaw in some wording, lawyers will then amend these documents in the future to correct it. In other words, it will not be a surprise if the government makes very sure that the next bill they enact has a clear provision allowing them to make ad hoc changes to FiTs whenever they want, at a flick of the Secretary of State’s pen.

If this is the case, then this week’s ruling could be seen to be a truly Pyrrhic victory, as it will create even greater uncertainty in the future for investors. Who would choose to invest in an industry, on a long term basis, when the government can reduce one’s revenues at any time, whether because of perceived cost reductions or sheer political whim?

This is my greatest concern for the long term consequence of this week’s ruling, even if it is an unintentional result.  However, if there is a ray of sunshine, it is that the solar industry’s costs are continuing to reduce.  While subsidies and FiTs are still needed at present, if the industry can continue to evolve to the point where no subsidy is required, then that is an industry which will be highly attractive to investors, for the long term. Political risk? No longer applicable.  Grid parity for the solar industry is just beginning to appear possible in one or two markets, but hopefully this is just the start and the industry will continue to progress so that this becomes a reality in the very near future, even in the UK.

Now that will be a result worth celebrating!

Notes: Mark joined LDC in 2011 and leads the Cleantech and Environmental sector coverage in London. Previously Mark was with Investec in London where he was head of the Power and Renewable Energy team. His transaction experience encompasses numerous equity, mezzanine and project financings (both large and small) across the globe and he has published many industry articles. Before this, Mark was an energy banker at Société Générale and Dresdner Kleinwort Benson.

In association with StartUp Britain, Mischcon de Reya and Baker Tilly, LDC is supporting a  master class aimed at helping companies looking for potential funding options. The full details are provided below:

Free legal master class for growing companies: raising money in difficult economic times

Essential tips to maximise your potential funding options

Content Essential tips to maximise your potential funding options
The master class will discuss the options, and how to improve your chances of success:

• Business Angel
• Venture Capital 
• MBO 
• Top tips from the inside – the venture capitalist’s perspective�
  • What works and what doesn’t
• 99% perspiration / 1% inspiration
  • Be prepared – due diligence is key
• Business plan/pitch documents�
  • Make or break…your chances of success 
  • Follow the money…

This session will be followed by a 30 minute Q&A.

Chaired by Andrew Rimmington, Partner, Corporate Department – Mishcon de Reya

Panellists:

• Duncan Cheatle, Co-Founder of StartUp Britain and Founder of the Supper Club
• Kevin McCarthy, Head of Private Equity – Mishcon de Reya
• Tim Farazmand, Managing Director – LDC
• Rowan Williams, Partner – Baker Tilly 

When: Wednesday 8 February 2012, 8.30am to 10.30am (breakfast from 8.30am)

Where: Mishcon de Reya, Summit House, 12 Red Lion Square, London WC1R 4QD

To secure your place at this event, click here

Directions to Mishcon de Reya

Add this event to your calendar

Birchfield Harriers, based in Birchfield is the UK’s premier athletics club and has been represented at every summer Olympics bar one since 1908. Based at the Alexander Stadium in Birmingham they have access to a High Performance Centre, an indoor facility which provides indoor training for a range of events including long jump, triple jump, high jump, shot putt, and pole vault. Their aim is to get 12 of their athletes into the 2012 Olympics. 

LDC is supporting Jade Perry (Hepathlon),  Katie Stainton (300m hurdles), Melisa Hanson (100m and 200m), Jake Porter (110m Hurdles) and Rowan May (Pole Vault). See the below profiles to find out more:-

		Jake Porter 110m Hurdles Jake is an U20 athlete and has won national titles and English titles in the sprint hurdles. His major goal for 2012 it selection for the World Junior Championships.
		Melisa Hanson – 100m and 200m The highlight of Melisa’s 2011 season was winning the English Schools Championships. She suffered a hamstring injury the end of the season but is now back in full training and hopes to lower her current personal best of 11.83 seconds.
		Rowan May – Pole Vault Rowan is a highly tamented pole vaulter who in his first season as an U17 won both the U17 and U20 outdoor championships and the U17 indoor championships where he set an age group record of 4.91cm. he was selected for the World Youth Games in 2011 and is looking to break the 5m mark this season.
		Katie Stainton – 400m Hurdles Katie moves into the U20 age group in 2012 where she will move to the 400m Hurdles from the the 300m hurdles. She has won a number of titles at this event and was the bronze medallist at the English Schools Championship.
		Jade Perry – Heptathlon Jade is following in the footsteps of many successful Birchfield Harriers heptathletes including denise Lewis, Kelly Sotherton and Louise Hazel. She is looking forward to a successful season as she continues her improvement in the U20 age group.

Week one of the record attempt has not been without some success…rowing 701 miles and staying ahead of World Record time being top of this list…but sea sickness, fatigue, bruising and blisters…and a distinct lack of trade wind support has put the crew of Sara G under extreme pressure.

Starting their row from Tarfaya at 1pm on the 2nd January despite a last minute customs hitch the crew were out of the traps pretty quick completing over 100 miles in their first day. Thereafter progress was hindered by difficult seas and a lack of wind support.

A number of the team suffered from sea sickness which hampered their ability to eat and sleep (and row effectively). Each team member will use up to 12,000 calories every 24 hours but with the crew unable to eat more than 2,000 calories a day during the first few days this placed a strain on the team’s strength. Whilst the ‘getting your sea legs’ aspect was expected the severity of the first few days was not!

The team have now settled into their 2 hours on 2 hours off routine with the sessions during the night proving to be the most difficult psychologically. Rowing in the dark with your back to the direction of the boat and not being able to fully see the direction of the waves has been pretty disconcerting for the crew.

Simon, Aodhan and Matt

The Atlantic Odyssey challenge has already attracted the attention of a large following not least of which because they have been able to send back regular voice blogs (courtesy of iPadio), and take part in a number of phone-ins (particularly with Heart FM Breakfast show – as they are undertaking the row in support of Heart’s Childline appeal), and Mark continues to blog for the The Independent Online.

The description of the first few days was summed up by crew member Ian Rowe who described tjhe journey thus far: “Think of a washing machine, place a boat in it and turn it on, then bash your legs and knees with a baseball bat…now you have some idea of what it has been like!”

The journey is compelling and can be followed at www.atlantic-odyssey.comand via their http://twitter.com/AtlanticOdyssey. Please send messages of support to them via their Get In touch section and any donations to Childline would be most welcome.

L-R: Matt, Aodhan, Simon, Yaacov, Ian, Mark

At 1pm on the 2nd January the Atlantic Odyssey crew set off on their East – West Atlantic row record attempt from Tarfaya in Morocco to Barbados.

They are attempting to row across the 3,000 miles of ocean in less than 30 days!

The team of Matt Craughwell (skipper), Mark Beaumont, Ian Rowe, Simon Brown, Yaacov Mutnikas and Aodhan Kelly play to row 100 nautical miles a day, via a strict regime of 2 hours on and 2 hours off the oars. Clearly this is not for the faint hearted and one that will test the mental and physical reserves of all those involved.

To put this all in perspective, the first ocean row was undertaken by two Norwegians, Frank Samuelsen and George Harbo, who rowed an open wooden boat from New York to France in 1896, but it would be another seventy years before the next ocean row in 1966, when John Ridgeway and Sir Chay Blythe succeeded in rowing from Newfoundland to Ireland.

And amazingly up until 1988, only 19 people had ever rowed an ocean.  Now, there have been over 500 but strangely 321 of these have been Britons – so it seems that the adage ‘mad dogs and Englishmen’ applies to the whole of our island!  For 500 people to have rowed an ocean sounds quite a lot, until you consider that over 3000 people have stood on the top of Mount Everest!

Sara G in Agadir

The first ocean rows were undertaken without any modern technologies and communications.  They had to carry all the water they needed for their entire journeys and were truly tenacious and pioneering voyages.  Gerard d’Aboville (1896-1982), who rowed the Atlantic, once said about these early crossings, ‘We were like test pilots, but without a parachute.’

The crew on this record attempt will be rowing in ‘Sara G’ an 11 metre boat, and the vessel in which the current world record was set.

The crew for his present challenge were selected from nine rounds of sea trials that began in April 2011. Their attempt will be fuelled by each crew member consuming between 5000 and 6000 calories every day, while expending somewhere close to 12,000 calories a day.

The team’s website said of the challenge: “Of the countless teams that have taken to the Atlantic trying to set the fastest time ever, the sub-30 day barrier has so far remained elusive. The first team to break this barrier will achieve, what has seemed for many involved, the unassailable mark in the sport’s history. We have a huge range of experience in the boat and come from many different backgrounds, but the stand-out fact for each member is their rowing history.”

Over the course of the journey the crew will be sending back regular blogs and pictures, and Mark will be writing exclusively for The Independent.  In addition the crew will be able to send back brief voice messages through iPadio. To hear Matt’s departure messages click here:

Atlantic Odyssey Channel – 5th phonecast http://ipad.io/niV

Full details about the attempt can be tracked via www.Atlantic-odyssey.com and their dedicated twitter feed http://twitter.com/AtlanticOdyssey

Winter training is going really well for me this year! It’s the first time I have not been held back by any injuries or rehab so I am feeling fitter than ever. 

In September we all have a nice break from training. This is the time of the year where I can do as please and eat what I want without feeling guilty! This year I went to Rhodes with my friend Abi! We met some good friends there who were nice, and I came back with a great tan. 

Then it is back into hard training which is always a shock. During October and the start of November I did mostly general fitness which included longer runs (such as 30 minutes), circuits, grass running (which is interval training of between 1 and 3 minutes) and Fartlek (running on a muddy field for about 90 minutes doing different speeds). This is the first year in a while I have been able to complete all these training sessions so actually enjoyed it for the first time ever.

Over the past 6 weeks we have started doing some Hurdles technical work (which always breaks up training as this is fun) and our lactic tolerance sessions which is very important for 400m running. These lactic sessions are usually between 200m and 400m, and an example of this would be 2 sets of 3x300m. This is the big sessions we do in the week and everyone gets very nervous for this as we have target times given to us by Coach Dakin.

This time last year we were really struggling with the weather and the track had been iced over for weeks but so far the weather has been kind to us. So hopefully January will be as nice as this year I am not going warm weather training. 

I am looking forward to Christmas as we do have slightly easier sessions for the week between Christmas and New Year although we don’t have an actual break. This year as Christmas Day off as it’s a Sunday, but our group always have a Sunday off every week. Not sure what happens next year as its Tuesday. 

Only another month and the indoor season will have started which I am really looking forward to as I had to miss it last year. I will be sharpening up my hurdling and concentrating on sprint hurdles. My first race will be at Loughborough, it is always nice to compete on my home track. 

Merry Christmas and Happy New Year!

Editors Note: Supported by LDC Meghan Beesley is a promising 400m hurdles and 4 x 400m relay runner. She has represented England, most recently at the Commonwealth Games in Delhi where with the relay team she earned a silver medal, and with training is aiming to be part of the Great Britain team at the London 2012 Olympics.

On New Year’s Eve, as you toast the start of 2012, spare a thought for a small boat and six men setting out across the Atlantic Ocean!  Once again, I am embarking on a journey that’s very viability is doubted by many. We aim to be the first to row across the Atlantic in less than a month. And once again, LDC are a part of the team.

LDC shares my level of ambition and enterprise – they have backed my expeditions over the past five years and it has been great sharing the trials and ultimate successes. Expeditions and documentary making are a very different world to private equity, but we share the same ambition in making big ideas happen.

You can follow our teams progress over the 3,000 miles from Morocco to Barbados through www.atlantic-odyssey.com from where you can see the progress map, hear our audio updates and read my blogs for the Independent.  You can also follow the whole campaign on twitter @AtlanticOdyssey or on Facebook at ‘AtlanticOdyssey‘.

The bare facts are that we will be rowing in 2 teams of 3, on 2 hour continuous shifts – so we will be sleeping for less than 2 hours at any time and will each be rowing 12 hours a day.  During the month’s crossing we expect to lose between two and three stones of weight each – it’s impossible to replenish all the energy we will use.  We are unsupported and will be relying on daily weather reports to find the strongest patches of trade winds to ensure the fastest crossing.  We have a fast boat and an experienced crew, but to break the 30 day barrier for the first time relies on the weather playing its part!

Enjoy following the campaign over the coming months and here’s hoping we have reason for a big welcome home, ‘World Record’ holder’s party in February (we hope!), which you will be welcome to.

Note: The full story can be followed at www.atlantic-odyssey.com or via twitter on @AtlanticOdyssey (hashtag #Atlantic3000); and Mark’s personal online feed is via twitter: @MrMarkBeaumont and on his web site http://www.markbeaumontonline.com/