Neil Allen: Aiming for number one (Photo: Terry Marden)
Neil Allen says terry marden How his company keeps deals flowing in a more challenging market
As you climb three flights of Georgian stairs to Neil Allen’s office, you’ll discover that a city increasingly recognized as being at the cutting edge of technology has always had historical and architectural grandeur. It’s a physical challenge that will remind you that you are there. This is Charlotte Square, perhaps the most famous of Edinburgh’s New Town addresses, and one that Allen and his partners at independent trading advisory firm HNH cherish with special admiration.
HNH is expanding its workforce and may add one or two more employees. “We could use a little more space, but this is a good location for us and we have no plans to move anytime soon,” Allen says.
The business, which he runs with partners Harry Linklater and Bruce Walker, was founded by a Belfast-based company looking for a partner to help set up a boutique operation. It was part of an expansion plan they were considering.
Following the recommendation of Paddy Graham, head of BGF Scotland and Ireland, the two companies will be combined in 2019, with Scottish operations likely to become the largest part of the business in terms of fee income for the first time this year. is high.
Growth has been hard-won in a market that everyone knows is difficult, and will continue to be so even if inflation and borrowing costs fall as expected.
“The environment, particularly borrowing costs, has definitely made things more difficult, and we were flat through October, and then November and December were relatively quiet,” Allen said. “It’s about rolling up your sleeves and going for it.”
By the end of the year, the seven-strong Edinburgh team will have completed a record year, having completed 10 deals ranging from £2m to £60m in sectors ranging from food and beverage to business services. These include deals with logistics company Valet Express, IFA company Carbon Financial, and window and door manufacturer and supplier CyD Solutions.
However, the main focus is on technology and technology-enabled services, with current big growth areas being cybersecurity, software-as-a-service, and AI.
“The market is not simple,” Allen says. “Obviously there are still a lot of deals out there, but there is no undue wariness among investors about leveraging their capital.
“Everyone wants certainty and the current situation means transactions with buyers and sellers trying to determine value will take a little longer.”
Although Allen is Yorkshireman, he did not have a career in finance in mind when he chose to study English at Leeds University. He took a job with his PwC in the Midlands and then returned to Leeds to work for Bank of Scotland. While there, he was invited north to Edinburgh to join the integrated finance team.
He joined KPMG as an advisor after the financial crisis, when the bank that became HBOS was split into Lloyds. His desire to do what he wanted led him to team up with Linklater and Walker. The latter has developed a strong whiskey-focused role and has high-profile additions to the team in the pipeline.
Mr. Allen has clear ambitions for the company. “We want to be the number one trading company in Scotland,” he declares.
With around a dozen potential deals already at various stages, it should be a fruitful year for HNH even if the economy continues to slump.
He says Scotland produces many good companies, but these tend to be at the lower end of the spectrum that investors would normally consider. But he argues that small is indeed beautiful, allowing for closer and mutually beneficial working relationships between advisors and clients.
This philosophy is built around understanding the needs of our clients and seeking the best way forward rather than being driven by goals.
“It’s important to know everything about your client, be prepared for any questions from buyers or investors, know the direction of travel and if there are any negative factors to address,” he says.
“It is in our interests as well as our clients that the advice is good and we get the right deal.
“If that means advising them not to proceed, that’s fine. We won’t force a client into a contract if we don’t think it’s right.”
personal checklist
Birthplace: Middlesbrough, moved to Scarborough, age 9
Year: 49
education:University of Leeds (English), Chartered Accountant [at PwC].
career highlights: PwC (East Midlands), Bank of Scotland (Leeds and Edinburgh), Caird Capital (Edinburgh, London, North of England), KPMG (Edinburgh), HNH (Edinburgh).
What are your main interests outside of work?
Hill walking, golfing and occasional visits to Tynecastle and Murrayfield.
What irritates you?
People who fail to make the most of their potential and opportunities.
What did you intend to become when you were young?
I didn’t have any specific career in mind, but I knew that having an English degree didn’t entitle me to anything special and that I needed to get into a profession.
I worked for a marketing company for a few months, but it went out of business. Finance seemed to be at the heart of everything, so it was a natural choice.
Is there anyone who has inspired you in your career?
My boss at the Scottish Consolidated Bank, the late David Cowie, encouraged me and encouraged me to move to Edinburgh.
Name three people, living, dead, or fictional, that you would invite to your fantasy dinner party.
paul mccartney – I’m fascinated by the process of songwriting and want to know where every song comes from.
oprah winfrey – someone who achieved incredible success in a hostile environment (and she was absolutely amazing in The Color Purple).
leonardo da vinci – It’s amazing how some people can be so skilled in so many different fields