More than 300 guests gathered last month for the flagship event in the ICAEW calendar – the Corporate Finance Faculty’s Annual Reception.
Taking place at the historic Fishmongers’ Hall in the City of London, the Corporate Finance Faculty’s Annual Reception was as popular as ever, welcoming more than 300 guests. The evening commenced with a champagne reception, before ICAEW head of corporate finance David Petrie started proceedings in the stunning banqueting hall. Alistair Brew, chair of the ICAEW Corporate Finance Faculty and head of investments at BGF, then provided attendees with a summary of the faculty’s activities over the past year and a look at what is ahead.
Attending his first faculty Annual Reception was Alan Vallance, who took over as CEO of ICAEW in April this year. “The faculty has grown to become the UK’s largest network of corporate finance professionals,” he told the packed audience, “with a substantial reach and influence in a hugely significant area of business responsibility and, indeed, income for our member firms. It provides a world-leading service to the corporate finance, advisory and investment community.”
He pointed out the importance of corporate finance, transactions and other advisory services, which form the third largest service line for ICAEW’s member firms, and that in the UK alone, the Big Four’s corporate finance advisory business now generates £2.5bn in revenue per annum. He added: “We recognise the huge economic imperative of getting this right. The role we play supporting members in deals, transactions and other advisory services cannot be overstated.”
Keynote speaker
Lord Clement-Jones CBE, co-chair of the All-Party Parliamentary Group on Artificial Intelligence and Liberal Democrat Lords spokesperson for science, innovation and technology, then delivered the keynote speech on the impact of AI on corporate finance.
“AI tools must be managed carefully to ensure that they complement the human element of due diligence, rather than replace it, avoiding the pitfalls of over-reliance on automated systems,” he said. “It is now much more about what AI can add to human endeavour, how it can augment what we do.”
He praised the faculty and ICAEW for its work in ensuring members are up to date with AI developments. Last month the faculty launched an AI Hub, a project led by ICAEW corporate finance manager Raquel Edward.
It is now much more about what AI can add to human endeavour
“AI needs to be regarded as a top priority for boards and CEOs,” said Lord Clement-Jones. “This is transformative technology that in its adoption will demonstrate the values of a business in the way that employees in particular are regarded and, in consumer-facing businesses, how they treat customer data and utilise AI, and automation. There are also major issues regarding data security, ethics and bias in AI applications that need attention at board and CEO level. And it must be clear that boards are fully accountable for the introduction of these powerful new tools and that they are setting the values for how they are utilised by their employees and the extent of meaningful human intervention taking place.”
He emphasised the importance of corporate governance and meeting environmental, social and governance objectives to ensure the benefits of AI to employees and citizens at large are understood and equitably shared.
The prizes for the two best Diploma students and the Corporate Development Award were then made. There was a special presentation of an outstanding contribution award to ICAEW’s capital markets policy senior manager, Katerina Joannou, which was specially made and donated by Yvette Allen, former Deloitte partner and, until earlier this year, chair of the faculty’s Technical Committee.
The evening was sponsored by Allica Bank, Arbuthnot Commercial Asset Based Lending, Beauhurst and Migito.
This year’s Corporate Development Award was won by Pearson plc, the FTSE 100 UK-headquartered lifelong learning company. Alistair Brew (above left) and Andrew Rutherford (above right), commercial director at Arbuthnot (a sponsor of the Annual Reception), presented the 2024 award to Pearson deputy CFO, Rachel Coulson (centre).
In accepting the award Coulson said: “This award is a reflection of the hard work and talent within Pearson, our disciplined approach to capital allocation, and a deep focus on product innovation and execution – all underpinned by a shared belief in our purpose to help people realise the life they imagine through learning.”
The award is given to the UK listed business that has made the most effective use of M&A to increase shareholder value, by broadening its market and enhancing its technical capabilities. Public companies are assessed by an empirical analysis of the contribution of acquisitions made over the previous two years, using a unique methodology devised by the Corporate Finance Faculty and the M&A Research Centre at Bayes Business School.
In January 2022, Pearson acquired Credly, the market leader in digital workforce credentialling, for £156m. In April 2022 the company acquired Mondly, a global online language learning platform, and in December 2022, it acquired Personnel Decisions Research Institutes, a workforce assessment service company, for $190m (£150m). Since January 2022 Pearson’s share price has increased from £6.13 to £12.03 (96%).
David Petrie noted that Pearson’s strategy of expanding through M&A in core areas had been very well received by financial markets, saying: “Pearson shares many of the same ideals and purpose as ICAEW, with both our organisations being committed to lifelong learning. It is at the forefront of delivering learning and development using AI, at a time when dealmaking and investment is itself being transformed by the same technologies.”
Chris Mitchell
Cambridge-based corporate finance manager at Grant Thornton
How applicable is the diploma to your role?
The diploma covers a huge range of topics, from company valuation methodology to deal financing, deal structuring, growth strategy and acquisition rationale. So whether you work in an investment bank, or a boutique M&A firm, or a bigger advisory firm like me, you learn the core fundamentals of corporate finance. Some aspects were less directly relevant to my day-to-day work, but having an appreciation and understanding of the rules around listed companies, for instance, might be in the future. The diploma exams are particularly focused on the application of the learning – the case study makes you think about the situation at hand and applying your knowledge to the scenario. That’s what I really took from it.
How was the pressure of work and study?
The work-study balance was a real challenge, but not an insurmountable one. You can be working pretty long hours sometimes when you are in the crux of a deal. I wanted to make sure that I really digested learning material – I didn’t want to just scrape by. The fact that I thought the diploma was going to be really worthwhile for me made me find the time and put the effort into it. I did the ACA exams, but I was at a different stage of my career when I did the diploma – when you are managing a deal there isn’t the flexibility and understanding that you are studying that I had when I was doing the ACA. So, in some ways it was probably more challenging than the ACA exams.
What are your ambitions for the future?
My ambition is to do impactful work to ensure our clients get great value for their sustained hard work. That’s what I love about doing M&A – for your client it will likely be the biggest transaction of their life, and you get to handhold and take them through the process. And then I want to get the responsibility and roles that come with my hard work in M&A.
Nishal Thakrar
Birmingham-based associate in Evelyn Partners’ valuations team
How applicable is the diploma to your role?
The diploma has been highly relevant to my role. It has provided a comprehensive foundation in corporate finance principles, which are fundamental to the analysis we carry out. I have been able to practically apply a great deal of the learning material directly to my work – which includes valuations of intangible assets and businesses – for different purposes, such as commercial, tax or accounting, for instance. A lot of our valuations also relate to transactions and so the diploma’s core topics, such as M&A, financial analysis and valuation techniques relating to deals, are absolutely crucial to my day-to-day responsibilities. The diploma has advanced my corporate finance knowledge, and that has enabled me to approach projects with greater confidence, ultimately enhancing the input and value I can bring to our clients, and ultimately the quality of our valuation advice as a business.
How was the pressure of work and study?
Balancing work and study is always a challenge, but I found the flexibility of the Corporate Finance Diploma allowed me to tailor my study schedule around my professional commitments and so make it manageable. Setting clear goals,putting together a structured timetable and prioritising tasks were essential strategies. Evelyn Partners was also incredibly supportive with study leave and external training classes, which greatly helped with my revision. Additionally, the support from my colleagues and the resources provided by the Chartered Institute for Securities and Investment proved invaluable.
What are your ambitions for the future?
In the short term, I’m keen on further developing my expertise in valuations and contributing to larger, more complex projects. This may mean pursuing further qualifications to enhance my skills. Ultimately, I aspire to be able to provide holistic advice to clients and take on more leadership roles within the firm.