Fast growing finance firm launches new division as deals market remains strong

A Greater Manchester headquartered finance firm is expanding with a new division as the market for M&A remains buoyant.

PMD Business Finance is launching a boutique Structured Finance Solutions arm as SME business owners are increasingly looking to exit their firms for new opportunities as a result of the coronavirus pandemic.

The Oldham-based company said its new finance division is offering a ‘viable alternative’ to the high street lenders and fills a gap in the market for a multifaceted intermediary to provide structured finance solutions to businesses.

Over the past six months, PMD Business Finance has built a team of experienced industry specialists, and a vast and diverse funding panel, which has led to the launch of their new Structured Finance Solutions arm.

PMD will finance corporate or restructuring transactions, including acquisitions, management buyouts and Employee Ownership Trusts in addition to providing funding support to business owners by reviewing and restructuring their business finance facilities.

The fast-growing firm has already funded a number of deals in recent months including the acquisition of London Tower Services to Aspire Platforms, a UK platform hire expert.

Director Tom Brown said the coronavirus pandemic halted the division’s initial launch earlier in the year, but the team has been working hard to support SMEs whilst pushing through the height of the pandemic.

“Now is the right time for us to formalise how we already operate in this space and to show our partners and SMEs across the North that we are ready to provide the most comprehensive and appropriate funding solutions available in the market – whatever their specific needs.” he said.

“We’ve completed on multiple transactions since the pandemic including acquisitions, share purchases and MBOs, and with the recent extension of the CBILS deadline to 30 November, there is now a real opportunity for businesses to make the most of the scheme.”

He continued: “Many business owners have had enough, and the current climate will no doubt produce more corporate finance transactions due to the economic impact of Covid-19.

“Trading has been challenged; in several weeks a new budget will be announced, and it looks as though SMEs and their owners will be the target for various tax hikes as the government tries to claw back the huge Covid-19 deficit.

“One of which appears to be a substantial rise in Capital Gains Tax, which will hit business owners hard when selling their business.

“British banks are still reeling from the Bounce Back and CBILS tsunami and are struggling to support clients who are acquisitive or who are looking to exit their businesses via internal or trade sale.

“With their ever decreasing resource in experienced personnel, there needs to be viable alternative options.”