Sale will boost MCR’s prospects, says Whitehouse
THE acquisition of insolvency firm MCR by US-based corporate advisory firm Duff & Phelps will provide it with more opportunities for growth, according to Manchester-based partner David Whitehouse.
Mr Whitehouse, who led negotiations on his firm’s disposal for an undisclosed sum alongside London-based partner Paul Clark, argued that its new parent will not only provide an international network of offices from which it could pick up work, but also provide the wherewithal to help fund organic growth in the UK.
“They want to use us as a platform to grow and expand their European operations,” he said.
He argued that Duff and Phelps was a “very entrepreneurial” organisation which had been grown by its two founders from start-up to a New York Stock Exchange-listed business with revenues of over $375m, a market capitalisation of more than $550m and around 1,100 employees.
Importantly, Whitehouse said the business was debt-free and had the necessary resources to help fund its growth.
He said that all MCR staff were being retained post-deal and would enjoy a broader range of career prospects, including cross-border secondments.
The UK business will also continue to trade under the same name, and an expansion of its three-office network is likely, with Leeds and Edinburgh mentioned as potential locations.
MCR was started 10 years ago, but the Manchester office was set up in 2007 by Whitehouse, Phil Duffy and other former members of corporate recovery giant Kroll.
Its Spring Gardens operation now employs 63 people and has six of the firm’s 19 partners. In total, MCR employs around 150 and has a turnover of £25m.
The firm has carved out a niche in retail and in advising asset-based lenders on insolvencies. Last year it branched out into debt advisory services, bringing in former banker Paul Smith to head this operation.
In the retail sphere, it has been involved in some major administration cases including MFI, Allied Carpets, book chain Borders and Liverpool-based Ethel Austin. It was also recently appointed as administrator of Manchester-based asset finance firm Davenham Group.
Whitehouse said that most of its work would continue to be in the mid-market.
“Duff & Phelps was a financial advisor to the US examiner in the Lehman Brothers case, but that was the exception as most of its work is with companies with a turnover of up to $25m.
“That’s where they see us operating from – continuing to serve core clients in the banking and asset-based lending sector working with local SMEs.”
MCR was advised by Manchester-based corporate financier Tony Ford of Ford Campbell and Daniel Hall, corporate partner at law firm Eversheds.
