This podcast episode was recorded live at our Breakfast seminar in Brisbane.

The seminar, titled "Breaking Ground: Debt Capital Challenges and Opportunities in Construction and Mining Services," featured a distinguished panel of experts who discussed a range of issues and opportunities within the construction and mining industries.

The seminar emphasized the capital-intensive nature of these sectors, underscoring the importance of securing quality contracts and addressing supply chain issues, which were particularly highlighted during the COVID-19 pandemic.

Panelists

• Nicholas Samios: Fund Manager and Director at Hermes Capital, discussed the private credit market and asset-based lending, particularly in contracting.
• Ian Hyman OAM: Founder of Hymans, shared insights on business valuations, project management, and the challenges faced due to government regulations and indigenous land issues.
• Mark Rainbird: Chairman and Founder of BlueMount Capital, addressed the impact of commodity price fluctuations, labour shortages, and cash flow management on capital raising and business operations.
• Harry Mostert: Independent consultant with extensive experience in mining, construction, and infrastructure, discussed operational challenges and market entry strategies.

The seminar highlighted several current challenges. Persistent supply chain disruptions have created a bullwhip effect, leading to overstocking and subsequent price drops. Increasingly complex government regulations are causing delays in project approvals, particularly in construction. Indigenous land issues, involving competing claims and legal battles, are contributing to significant project delays and increased costs. Additionally, labour shortages and inflation are straining budgets, while rising interest rates and economic uncertainties are impacting asset values and business operations.

Despite these challenges, the seminar also identified several opportunities. There is ongoing merger and acquisition activity driven by strategic growth needs and capital requirements. Positive developments in certain sectors, such as gas, where government support is facilitating growth, were noted. Opportunities for capital raising exist for businesses with strong management and strategic planning.

Expert Insights

• Ian Hyman highlighted the deteriorating business conditions due to governmental indecision and indigenous disputes.
• Mark Rainbird discussed the effects of commodity cycles and market volatility, using nickel as an example of market disruption.
• Harry Mostert shared his experiences with multinational and private companies, emphasizing the importance of operational efficiency and strategic market entry.

The seminar concluded with a focus on the importance of understanding market dynamics, managing cash flow effectively, and leveraging strategic opportunities to navigate the challenges in the construction and mining services sectors. Lunch Money is produced by Hermes Capital.

This episode of Lunch Money was recorded live at our Sydney breakfast seminar.

Welcome to our in-depth seminar on mastering business acquisitions! In this video, we bring together industry experts Nicholas Samios, Ian Hyman, Andrew Casson, and Malcolm Campbell to share their expertise and experiences in the world of mergers and acquisitions (M&A). We cover a wide range of topics essential for finance professionals, business owners, and anyone involved in the acquisition process.

Key Highlights:

• Economic and Situational Impacts: Understand how major events like GST and COVID-19 have influenced business owners' decisions to sell and the current state of the market.
• Growth Strategies: Learn about the benefits and challenges of growing your business through acquisitions versus organic growth.
• Legal and Regulatory Insights: Discover the legal bear traps in business acquisitions and how to navigate them effectively.
• Valuation and Sale Preparation: Get tips on how to prepare a business for sale, including realistic valuations and addressing potential red flags.
• Buyer's Perspective: Hear about common mistakes buyers make, such as overpaying and strategic misalignment, and how to avoid them.
• Financing Acquisitions: Explore different ways to structure the financing of acquisitions, leveraging assets and ensuring adequate working capital.

Expert Panel:

• Nicholas Samios: Director of Hermes Capital, specialist provider of cashflow finance
• Ian Hyman: Principal of Hymans, specialising in property and equipment valuation.
• Andrew Casson: Founder of Castle Advisory, with over 20 years of experience in M&A, focusing on the sell side.
• Malcolm Campbell: Principal lawyer at Carmen and Greg, with extensive experience in business transactions and commercial law.

This seminar is packed with actionable advice and real-world examples, making it a must-watch for anyone looking to enhance their understanding of business acquisitions.

Listen now and gain the knowledge you need to succeed in your next acquisition!

This episode was recorded live at our Sydney breakfast seminar.

The ATO was generous during Covid, allowing Australian small businesses to add $15B to its pre-Covid undisputed arrears, bringing the total to $30B. However, playtime is over, and the ATO now wants to collect. In taking measures ranging from credit agency default listings to the initiation of winding-up proceedings, the ATO poses a significant threat to individual SMEs facing cash flow issues and trying to raise capital. This, however, presents an unprecedented opportunity for finance professionals. In this seminar, we will delve into the intricacies of this financial landscape, equipping you with the knowledge and strategies to navigate ATO arrears when raising capital.

This episode featured guest expert panel:

• Michael Moon
• Shannon Cavanagh
• Sule Arnautovic

In this episode, we covered:

• ATO's Approach and Stats:

  • ATO has become more active post-COVID, with a significant increase in tax debt.
  • Key tools include credit reporting and Director Penalty Notices (DPNs).
  • Tax debt has substantially increased, affecting small businesses the most.

• Client Evaluation and Financing:

  • Evaluating clients' overall financial picture beyond short-term debt.
  • Blended rates and diverse financing options are essential for managing debt effectively.

• Corporate Restructuring:

  • Formal restructuring options to manage ATO and other debts.
  • Corporate restructuring primarily addresses unsecured debt, with equipment finance companies often being cooperative.

• Negotiation Strategies with ATO:

  • Early engagement and proper engagement with the ATO are crucial.
  • Compliance with ATO's legal practice statements is essential for favourable outcomes.

Interested in future breakfast seminars by Hermes Capital? Check out our upcoming events here.