Private Equity Finance
In Private Equity Finance, For CompaniesAbout BMS Finance in relation to private equity finance
UK mid-market companies, with material pension scheme liabilities, have in recent years struggled to raise equity. Since the stock market crash in 2001, private equity investors have tended to avoid buying companies that have material defined benefit pension liabilities, viewing these liabilities as unquantifiable and best avoided. Conversely, BMS Finance embraces the challenges posed by companies with this profile.
Rather than lead investments, BMS Finance identifies mid-market buy out companies with material pension schemes and co-invests with leading private equity funds. By also bringing on board pensions advisor Valiance, BMS Finance assists each company to manage the liabilities and assets of their pension scheme making substantial opportunity for value creation.
Film Finance
In Film Finance, For CompaniesAbout BMS Finance in relation to film finance
The UK film industry has been through a period of considerable uncertainty as a result of attempts by the UK Treasury to stamp out tax avoidance via film tax shelters. Recently, substantial financial incentives, such as film tax credit provisions introduced in the Finance Act 2006, have helped revive the industry. However, the tax credits (20% if the film’s budget is up to £20m and 15% thereafter) are only available to film production companies once the relevant film has been produced and certified as being British by the UK Department of Culture Media and Sport.
To bridge the gap between day one of filming, and the time it takes for the film to be certified as being British, BMS Finance releases funds to clients secured on the tax credit yet to be granted. BMS Finance does this through the Limelight suite of funds.
Outsourcing Finance
In Outsourcing Finance, For CompaniesAbout BMS Finance in relation to outsourcing finance
Since the early 1990s, corporate IT systems have become increasingly complex as the automation of manual tasks has grown. As a result, companies are increasingly dependent on their IT systems in order to operate. During this period IT expenditure in the UK has steadily increased year on year. This is against a backdrop of a significant fall in computer hardware costs. It is therefore not surprising to learn that the growth in expenditure has been driven, not by hardware costs but, by the rising cost and complexity of developing, implementing and managing software.
This poses two key challenges for companies:
1. How best to manage and maintain complex IT infrastructure
2. How best to fund IT infrastructure, when traditional funding models, such as leasing, do not work for service or software expenditure
Private Finance
In Private Finance, For CompaniesAbout BMS Finance in relation to private finance
Most people are familiar with ‘public finance’ securities such as bonds. Private financing typically occurs when a company needs to borrow, but is either unable or reluctant to source financing from a bank, and does not have the infrastructure, the credit rating or the inclination to approach the public market. The borrower may need funds to finance its business inventory, or may have a temporary or seasonal need for cash while awaiting payment for goods/services already delivered. In the private finance arena, those who understand the prevailing business and legal environment, can offer funds to a borrower with collateral or asset-backing. Typical collateral includes inventory (e.g. stock, equipment), real estate, accounts receivable, contract receivables and the intrinsic value of the company.