With interest rate rises, supply chain cost issues and a dampening housing market, registered providers (RPs) could find themselves under significant financial pressure whilst they are also under pressure to invest into their stock to improve safety and quality and meet net zero targets.

Our ongoing merger video series provides food for thought for RPs considering a merger.

Episode 1: Why merge?

This episode answers the key question of “what are the benefits of a merger to your RP?”.

Partner, Darren Hooker, outlines the financial pressures RPs are under and what cost efficiencies as well as what other benefits a merger can offer to RPs.

Episode 2: Structure of a merger

In Episode 2, Darren Hooker outlines the different options available for structuring a merger and their benefits and drawbacks, including:

• strategic partnerships
• group structure options
• full merger.

Episode 3: Pre-merger agreements and due diligence

Episode 3 of the merger video series touches on the next steps RPs need to be thinking about if and when identifying a potential merger partner, including:

• heads of terms
• joint working groups
• confidentiality agreements
• standstill agreements
• due diligence.

Episode 4: Lenders and pensions

In this video we consider two of the most important aspects of any merger – pensions and lenders.

Episode 6: Effecting a merger

In this video, Darren considers how an RP can go about effecting a merger.

Episode 7: Legal steps

The last video in our merger series provides food for thought for registered providers considering a merger. Darren Hooker outlines the various legal steps involved having effected a merger, including: 

• Notifying the regulator of social housing
• Serving S48 notices
• Dealing with contractors
• Complying with lenders
  

How Capsticks can help

Capsticks’ aim is to be the firm of choice for those that make a difference. We advise over 200 RPs of varying size and location across the country on all areas of housing. Our specialist merger advice can assist on all aspects of merger including due diligence, advice on structures and harmonisation of loan portfolios.

To discuss how Capsticks can help with your upcoming merger, please get in touch with Darren Hooker.