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Allenbridge The Tax Shelter Report: EIS Review – Cyrus Precision Engineering EIS Fund 2

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Click the link below to view ‘The Tax Shelter Report':

Cyrus Precision Engineering EIS Fund 2 – Allenbridge Review

 

CIM’s second EIS fund, the ‘Cyrus Precision Engineering EIS Fund 2′ (the Fund) has received an excellent review from Allenbridge’s ‘The Tax Shelter Report’. The report provides a wholesome overview of the Fund’s structure, exposures, strategy, key personnel, and due diligence process.

 

The Tax Shelter Report lays bare how CIM’s management teams’ proven experience and track record gives the Fund a clear advantage in the British precision engineering market. Allenbridge concludes:

 

“Mr Watkins record of turning around businesses in precision engineering is a great advantage for the Service and the combination of skills, experience, and contacts suggests that CIM can identify buying opportunities for companies that meet the suitability criteria for the Service’s investment rationale.”

 

The report further identifies how the CIM management team’s experience and excellent relationship with the Welsh government is able to greatly benefit the Fund’s acquisitions through grants:

 

“In summary, CIM has a highly experienced management team that has expertise in finance and the precision engineering industry. Ian Watkins is supported by Peter Schwabach and David Hitchcock, both of whom are well regarded in finance. Mr Schwabach, a former Goldman Sachs banker, has raised EIS in a previous role, whilst Mr Hitchcock a JP Morgan former banker has excellent connections with the Welsh Assembly, who are able to provide grants to CIM for the acquisition or expansion of precision engineering companies.”

 

Furthermore, The Tax Shelter Report supports CIM’s unique position as the only institutional buyer of British precision engineering businesses in the £0 – £5 million range as well as the wealth of highly suitable targets the CIM management team has already identified. Allenbridge writes:

 

“Whilst there is an active M&A market for UK precision engineering companies in the value range of £15m to £300m, with many private equity, venture capital and global manufacturing companies interested in building a similar proposition, no market participants have been identified in the sub £5m sector in which CIM operates.”

 

“CIM has identified a pipeline of four potential companies for Cyrus 2, whose IM’s we have seen. The UK has 1,500 precision engineering companies, we understand, many of which are suitable targets for acquisition and consolidation.”