Case Studies

Medicom Group

TWP have provided expert support to help one of their long-term clients achieve the successful sale of a medical communications business.

The sale of West London-based Medicom Group, which specialises in pharmaceutical and healthcare medical communications, to Euro RSCG Life was completed earlier this month. Euro RSCG Life, as part of Havas, is one of the world’s largest global health marketing and communications networks, and their acquisition of Medicom Group further builds the group’s expertise and European offering.

TWP has been working with Medicom Group for a number of years, providing services including tax planning advice, so it was only natural that they turned to TWP for guidance on the deal.

Martin Ellis, chairman of Medicom Group, said: “TWP advised on all financial and tax aspects of the deal with their usual high degree of insight and professionalism.

“In particular Phil Munk, TWP’s head of Audit and Corporate Finance, provided personal advice and support in addition to the professional services, which really helped me finalise a great deal for Medicom Group and for Euro RSCG Life.”

Princi

A new London restaurant venture by entrepreneur Alan Yau is proving a big hit with food fans following a launch supported by the corporate finance expertise of Surrey accountants TWP Accounting LLP, founder members of the Corporate Finance Network.

Italian bakery restaurant Princi, in Wardour Street, Soho, is a joint venture by Mr Yau and Milanese baker Rocco Princi, known as “the Armani of bread”. Mr Yau has a string of successful restaurant ventures to his name, including Wagamama, Cha Cha Moon, Hakkasan and Yauatcha.

After working with TWP partners Philip Munk and Andrew Goddon on the sale of Hakkasan and Yauatcha in 2008, Mr Yau turned to the firm again when sourcing finance for Princi, at a time when the credit crunch had drastically reduced the opportunity to raise finance.

TWP Managing Partner Philip Munk said: “In the current economic climate, many businesses in retail are finding it difficult to secure funding and as a start-up, Princi was in a particularly challenging position. 

“However, we knew we had the corporate finance experience and contacts to make the deal happen. That, combined with Alan’s excellent track record and reputation as a restaurateur and entrepreneur, helped us to work closely with Lloyds TSB Commercial to secure the financial backing this ambitious firm required.

“Our experience with Princi shows that with the right approach, professional advisers and expertise, even now, there is funding out there.”

Andrew Pizzey, relationship manager with Lloyds TSB, said: “Launching a new business venture may seem a daunting prospect in the current climate and many firms are finding it difficult to fulfil their expansion plans. Basing our lending decision on the strength of Princi’s management team and the deliverability of its growth strategy, we were able to quickly structure a tailored funding package to match the needs of the business.

“Against a challenging economic backdrop, this deal demonstrates Lloyds TSB Commercial’s commitment to supporting ambitious start-up firms.”

Since Princi opened in October, with bridging finance provided by Mr Yau until the Lloyds TSB funding came through, it has proved highly successful, with the London Evening Standard described it as an “exhilarating addition” to Soho.  

Hakkasan

Hakkasan is a name that has food critics reaching for their superlatives. Launched in 2001 by Wagamama founder Alan Yau, the London eaterie was the first Chinese restaurant in the UK to receive a Michelin star and is consistently rated among the world’s best dining experiences.

Now the name is set to spread around the world, with the 2008 sale of Hakkasan and a second Yau London restaurant, Yauatcha, to Tasameem, the property arm of the Abu Dhabi Investment Authority, for $US60 million, with Mr Yau taking on the role of chief executive to oversee the expansion of the Hakkasan and Yauatcha brands abroad.

Complex issues are at stake in the sale of any business, and even more so when it’s already thriving and ripe for further growth.

So when preparation for the sale began early in 2007, majority Hakkasan shareholder Sami Wasif asked TWP Accounting LLP’s Managing Partner Philip Munk and Tax Partner Andrew Goddon to come on board, to lend their respective corporate finance and tax expertise to the process, as well as advising on operational issues to enhance the saleability of a business that was attracting interest from several sources.

Over the course of the year, Philip became closely involved in the business, attending board meetings and helping to prepare it for sale in what he modestly describes as a “quasi-finance director role”.

Mr Wasif stresses that Philip’s contribution was far more significant than that implies, saying: “He played a vital role, effectively becoming a member of the board, helping and advising us in terms of stabilising our financial position. Whatever he advised, the board were happy to accept.”

With Tamaseem emerging as the buyer of choice from three potential suitors, Philip worked alongside Hakkasan’s auditors and accountants, Deloitte, and lawyers SJ Berwin on issues including due diligence, whilst Andrew played a pivotal role in the structuring of the sale by providing expert advice to create a favourable tax structure for the sale for shareholders.

Mr Wasif said: “When a multi-million pound transaction is involved, it’s essential that every aspect of the deal is handled in the right way, by the right people, to deliver the right result.

“Knowing that Philip and Andrew were part of the team gave me real confidence that we would achieve the right result and their expertise and experience were crucial to bringing the sale to a successful conclusion.”

The Hakkasan deal also saw Philip build a successful working relationship with Alan Yau, based on delivering proactive, productive solutions, and he is now currently advising the restaurateur on a new project.