TMA (UK) Annual Conference 2009
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CONFERENCE REVIEW 2009
This year's conference was set against a backdrop of an economy now into the second year of downturn, with a long, slow, and for many businesses painful period of recovery forecast. Increasing unemployment has led to depressed consumer demand, which combined with tax increases and the end of tax deferments plus cuts in Government spending have hit many sectors, resulting in a period of intensely increased demand for the professional expertise of turnaround and recovery specialists. We were delighted therefore that so many key professionals from the industry took time out of their hectic schedules to join us at our most successful conference to date, with members eager to hear from some of the biggest names in the field how the troubled waters of the coming years were to be bridged.
TMA (UK) President Tyrone Courtman opened the event, supported by our conference moderator James Wheeler.
The inaugural address came from British Venture Capital Association CEO Simon Walker on private equity's role in turning round distressed businesses. Mr Walker told delegates that private equity had the experience, the professionalism, and the financial muscle to turn ailing companies into profitable ones despite the recession. “Private equity is not immune to recession," he said. "But it has been around a long time. It has ridden previous economic cycles and seen off previous recessions."
Our first Keynote speaker was journalist Tim Harford, better known as the Undercover Economist, who reminded delegates that economics was more of an art than a science. Asking whether he would be able to forecast the next steps in the crisis, he explained why experts in any field systematically failed to report in full, or gave distorted reports, when attempting to make forecasts. Tim then signed copies of his latest book during the morning break.
Delegates then broke into separate workshops to hear:
Paul Gorman of Barclays Risk Solutions Group examining the effects of interest and exchange rate fluctuations on cash flow forecasting.
Sandy MacPherson and Paolo Tagazzin of Celerant Consulting discussing a "repair and management" approach to private equity investment portfolios. Their workshop was the best-attended of the day and went through many of the tried and tested processes central to performance improvement, outlining some typical interventions and calling on specific and highly documented case studies. Download 'repair and management' slides.
Panel 1 reviewed the prospects for the retail trade. It was moderated by Global Turnaround Editor John Willcock and featured Alex Brick of Gordon Brothers Europe and Bryan Green of Salans forecasting further problems for Britain's independent high street retailers.
Our second Keynote speaker, Garry Wilson of Endless LLP analysed some failed turnarounds as well as some triumphant successes and laid out the different skills required by crisis managers and strategic recovery managers. Download Garry Wilson's slides.
We then split up again for two further workshops.
Chris Hart of Lloyds TSB Commercial Finance explored the importance of understanding the business methods, traditions, and culture of different markets. Download Chris Hart's slides.
Bryan Green focussed on the potential for restructuring relationships with customers, creditors, landlords, banks and other stakeholders in negotiating innovative and imaginative funding solutions at a time when traditional methods of securing credit are under intense pressure. Download Bryan Green's slides.
Our third Keynote address came from Angela Knight, who took over as CEO of the British Banking Association in 2007, just as the storm was about to break. She explained that the British banking industry was well advanced in the process of rebalancing capital and liquidity and addressing the controversies surrounding remuneration.
She said the banking industry accepted the need for reform but warned that in-depth impact analysis was a vital precondition of a new regulatory regime. The timing of reform was also vital if the recession were not to be deepened and prolonged, she said. The former Economic Secretary to the Treasury also debunked the idea that retail and investment banking could be artificially separated. Classic retail banks would never be able to raise enough in deposits to fund demand for mortgages, she explained.
Panel 2 was moderated by Alan Tilley and heard Andy Eggleston of Eggleston Partners and John Kelly of Begbies Traynor explain the likely implications of the crisis in the automotive industry on suppliers.
Our final Keynote speaker was Ian Pegler of Little Chef, who explained the critical importance of motivating and revitalising middle management and staff in the roadside restaurant chain's spectacular recovery - and revealed how he had been a somewhat reluctant TV star!
The day's business was closed by Pat Lagrange, President TMA International, and Bryan Green, TMA (UK) President Elect, and was rounded off with a champagne reception.
Conference feedback:
The biggest UK conference so far; and yet again excellent feedback from all attendees:
- 95% of attendees said it was an excellent or good use of their time and provided an excellent or good level of enjoyment.
- 90% rated the networking opportunities as excellent or good.
- 100% rated the venue as excellent or good!