- Private Equity Review
“The portfolio fires are out but we are not out of the woods yet”
“We think we will do the same volume of deals as 2019, if not more” It feels like vendors are being more realistic on valuations”
“I’m hearing the term covid adjusted EBITA………”
**Data and analysis above courtesy of BDO’s Horizons report on global mid-market deal activity.
2020 started with high volumes of M&A transactions in the UK & Ireland, in line with 2019.
However, the fast spread of the COVID-19 virus has resulted in a drop in the volume and value of M&A activity in the UK & Ireland.
The total value of deals completed in H1 2020 was USD 17.4bn. Deal volume fell by 26% to 195 deals compared to the same period in 2019.
- Q2 2020 - Total M&A volume for the UK & Ireland was 72 deals, a 49% decline versus the same period in 2019. Looking at deal value, 23% of Q1 and 37% of Q2 overall deal values were PE-led
The pandemic will see the demise of companies in already troubled sectors, like casual dining. We are seeing winners in Tech, Infrastructure, Support Services, Pharma and some Consumer.
Osprey Clarke has a successful track record placing Permanent and Interim executives into Private Equity backed companies. Roles include:
- Board level CFO and direct reports
- Operations Directors
- Head of Human Resources
- Sales and Marketing Directors
- Chair and NED
Having trained as an Accountant, Phil began his recruitment career in the late 90’s. He has worked with companies of all shapes and sizes across the UK and Australia and currently heads the Osprey Clarke Private Equity Practice. Primarily focused on the mid-market, Phil loves working with dynamic investors and leadership teams, as they work together towards a value creating event.
philgrinhaff@ospreyclarke.com +44 (0) 7925 615366
Sector Focus on e-mobility
The dynamic growth of the e-mobility sector will continue long into the future.As with all reasonably new, rapidly developing markets, the main players consist of:
- Dynamic, fresh thinking start-ups
- Companies transitioning from old to new technologies
- Established players who saw the opportunity early and are now well-established pioneers in their field.
All these companies will have similar issues in common:
- How do they continue to generate new ideas and concepts from within their existing structure?
- How do they entice appropriately experienced talent into the business?
These questions will impact a company's ability to innovate and to develop/deliver their products/services within an acceptable timescale, so that they can remain at the top of their game.
Osprey Clarke has the required experience of working within the e-mobility sector.
We have hired at every function for emobility businesses in automotive components, vehicle start up, electric bus operators and global automotive engineering consultancies focussed on the sector.
Right now in this vibrant market, we are partnering OEM’s, Tier Suppliers and engineered products and support businesses on a range of interesting searches.
Osprey Clarke has worked actively with interim and permanent appointments within the e-mobility sector. We have knowledge in this market and can provide immediate access to specialists in development, growth, change, transformation, project and functional leadership, contact: stevedengel@ospreyclarke.com +44 (0) 7813 021906
- Focus on Aluminium
Over the last decade Osprey Clarke has worked on numerous leadership appointments within the Aluminium Sector. This is a market valued at circa $170 billion globally in 2018 and set for continued growth.
Given electrical power is such a critical cost of production (circa 40%) many primary aluminium smelters are located near cheaper sources of power such as hydroelectric power in Norway, Iceland and Canada and natural gas in the Middle East.
Aluminium is widely used in food & packaging and pharmaceutical industries as it is nontoxic, preserves food for prolonged times and inhibits the growth of microorganisms.
Corrosion resistance, reflectivity, lightweight and recyclability are other characteristics which make aluminium an excellent choice for various industrial applications. Interestingly around 75% of all aluminium ever produced is still in use today.
Growth globally is driven by developments in the transport industry, technological advancements in aluminium manufacturing technologies and processing equipment.
Growth in demand from emerging economies such as China & India and an increase in the use of recycled aluminium products globally provide lucrative opportunities for market expansion.
Market leaders within this sector include: RUSAL., Aluminium Corporation of China Limited (CHALCO), Rio Tinto, Alcoa and Hydro.
Given the wide geographical spread of primary aluminium smelters globally and the highly technical nature of the scare talent pool we are often asked to headhunt engineering and commercial leaders internationally with a view to relocation.
Should you be seeking to add to your leadership team or further your own career within the aluminium sector globally we are happy to connect.
Please contact: craigmarcham@ospreyclarke.com +44 (0) 207 268 2060 for further information.
- Activity in Executive Search - Technology and the Satellite industryOsprey Clarke has built a strong practice supporting Business Leaders within the Satellite Sector. We partner operators, communication businesses vendors and aerospace companies, including satellite manufacturers and launch services.
We are part of the momentum that is driving explosive growth within the small satellite market. We work with businesses in mini, micro and nano satellites Our clients sit across the defence, commercial, civil and government sectors and we work hand in hand with the private equity community.
The global Small Satellite market size is projected to grow from USD 2.8 billion in 2020 to USD 7.1 billion by 2025. Growth is driven by demand for LEO-based services, demand for Earth observation imagery and analytics and increasing number of space exploration missions are the major drivers of small satellite market.
The small satellite market includes major players Sierra Nevada Corporation (US), L3 Harris Technologies (US), Lockheed Martin Corporation (US), Northrop Grumman Corporation (US), and Airbus Defense and Space (Netherlands).
Small Satellite is the fastest-growing segment of the Small Satellite market, by Satellite Mass. The growth of this segment can be attributed due its wide use for Earth observation and broadband internet. Small satellites are used in constellation architecture for gathering scientific data and communication purposes. Small satellites are used for in-orbit inspection purposes of larger satellites. These are also used as test carriers for newly developed components that are to be installed on a much critical satellite.
Earth observation & remote sensing is the fastest-growing segment of the Small Satellite market, by application. The growth of this segment can be attributed due to compact nature of small satellites led to efficient Earth observation and remote sensing. due to their compactness, they are ideal for Earth observation and tracking of various weather-related phenomena such as hurricanes, lightning, and polar lights, or natural catastrophes as well as speculation of accidental disasters with relatively no delay in reporting time.We have completed over 30 assignments in this field in recent times across technology and functional related positions and are interested to talk to anyone active in this market.
michaelherst@ospreyclarke.com +44 (0) 207 268 2060
- The Future of the Office
Survey Results - We asked over 100,000 client contacts from 25 countries to tell us how they are currently working, and how confident they feel about the next 12 months. Survey date September 2020
Where is your place of work?
Home - 27%
Office - 25%
Both 48%
South America Reports 50% of staff are at home
Is it safe to return to the office?
63%
North America ...
feels least safe
at 49%
37%
Where are your staff most productive?
Africa Reports
67%
are more productive
from both
Home 15%
Office 29%
Both 56%
What is your 12 month business outlook?
Positive - 26%
Challenging - 53%
Uncertain 21%
- Osprey Adds Strategy ConsultingFor over 30 years, Osprey Clarke has built board level relationships, so it was a natural evolution to announce the appointment of Raglan Tribe to manage our new division earlier this year.
Raglan has extensive board-level experience as a senior partner in Frost & Sullivan, aczel&co and Mindsheet. He has developed winning strategies for blue chip technology companies in Government, Automotive, Financial and Defence Industries
Previously, Raglan was the Group Research and Development Director of De La Rue plc where he led their product launch programme for the worlds’ largest currency conversion, the Euro. He also has 12 years of automotive experience progressing to the Chassis Systems Director of TRW Automotive. He has authored 28 papers and published 15 patents and was a pioneer in the field of autonomous vehicles. His Driver Assistance master patent is now the basis of a $78bn market.
The decision to acquire senior talent should always be taken within the right strategic context. A bad C-Suite hire could set you back years. Richard Foster from the Yale School of Management shows that the average lifespan of a Standard & Poor company has fallen from 67 years in the 1920s to just 15 years today. He speculates that 75% of today’s firms will be gone by 2027. It’s the same story with the FTSE 100 and private companies. It is getting harder and harder to stay at the top. The very notion of business strength and power is changing. Cornering the market and monopolising resources no longer assures long term success. How would your company fare against a determined agile competitor, anywhere in the world, with a disruptive offer and exponential growth?
Therefore, the key questions are:
Do you have the right strategy to retain and grow your existing markets?
Do you have the right strategy to break into new promising markets?
Do you have the right talent to create and deliver winning strategies in these turbulent times?
In this role, Raglan can act as a sounding board for our clients to ensure that our talent search is effectively directed to meet your strategic needs. If necessary, we can also support deeper dives to hone strategies that are no longer working. Please contact Raglan Tribe if you would like to book a strategy evaluation session.
raglantribe@ospreyclarke.com +44 (0) 07973 337 372
- How engaging interims can benefit a permanent search.
As businesses have re-aligned their processes to cope with the new Covid working constraints, so too have their resourcing partners who have developed creative solutions to benefit their clients.
With business confidence generally at a low level, additional resourcing is often considered as a diversion away from the primary tasks of managing and securing the future of their businesses.
Since the pandemic struck, the recruitment sector has seen that businesses are sometimes unable to recruit permanent talent, due to:
- appropriate candidate’s perceived risks over changing jobs in challenging times
- companies’ scepticism towards effectiveness of traditional recruitment methods
To overcome these concerning issues, businesses are turning towards recruitment partners who can offer both interim and permanent resourcing services.
When delays occur with an essential permanent search, then companies are seeking recruiters who can offer a ‘one stop’ interim and permanent solution.
The benefit of this concept is that Interims are assigned immediately, allowing the permanent searches to continue, at an appropriate pace, confident that the interim creates calm, generates momentum and control and who will step aside once the permanent candidate is available.
Such instances where Interims continue to be in demand are when:
• instant, additional resource is critical to safeguarding business continuity
• the introduction of a new corporate direction/strategy is necessary
• rescue plans are required for either an operational or financial turnaround
• a steady pair of hands to complement the existing management structure, offering solid, experienced advice and senior counsel
• companies with severe cash flow constraints benefit from our ‘pro bono’ interims
For over 23 years, Osprey Clarke Interim Executive and Executive Search businesses have been combining their respective resourcing skills to deliver exceptional results to our clients, regardless of the business scenario.
If you require an innovative approach to any of your resourcing issues, then please do get in contact.
stevedengel@ospreyclarke.com
