Please see below for a flashback to an issue of Market Comment that I wrote shortly after the BREXIT refferendum result was announced.
I first wrote this blog about RBS and their GRG function sometime ago on another site. It is reposted here as a flashback. I hope you all enjoy it.
A lot has been written and spoken about a division of Royal Bank of Scotland known as the Global Restructuring Group or GRG for short. There are numerous scary tales about GRG scattered about the internet and we will not precis them here. The scale of the issues has caused concern at a high political level within the UK Government. The long and short of it is that the bank take control of businesses and property where the bank feel they may be over exposed or at risk even if they may not be. They often use this as an excuse allegedly to gain control of “juicy” assets. They then allegedly sell the assets at a lower than market price to an organisation that often has very strong ties to the bank itself in some cases subsidiaries. The assets are eventually sold again netting a most handsome profit. These actions however cause an awful lot of undue stress and anxiety to the business owners and again there are stories of serious health problems caused by these sorts of tactics all over the internet. This situation is not exclusive to The Royal Bank of Scotland, most banks have similar departments and similar modus operandi. The most serious stories from our reading in our opinion surround RBS. So what is the businessman or woman in the street supposed to do when faced these types of operations closing in on a business that they have worked so hard for and devoted so much of their livelihoods to do? The first thing is not to panic if an operation like this starts popping up on the radar. Secondly get as much as you can in order regarding finances and operational matters. Thirdly get yourself a fantastic support network of family, friends, professional advisers and professional friends from clients, partners and suppliers alike in place, you may need them. Then look externally. Look to selling the business discreetly. Look also to other investors. A joint venture could also ring fence assets away from such an approach if structured correctly. The important thing is to keep as calm as possible. It is that this point that the The P2 Set might be able to help you. We have a large database of investors, business buyers and joint venture partners, we also have access to external finance providers if needed. We also a very good source of advice and consultancy. You will find our approach, method and manner calm, supportive, detailed and loyal.
Here is a flashback to The P2 briefing on Slide share. This is from January 2016.