What is the Local Infrastructure Housing Activation Fund (“LIHAF”)?

The Local Infrastructure Housing Activation Fund (LIHAF) is part of the Rebuilding Ireland Programme. Announced last July and approved on the 28th March 2017. The fund totals €226 million and will be used to improve Ireland’s strategic infrastructure and increase the number of houses. It is hoped the fund will lead to the development of 23,000 new homes by 2021.

Purpose of the Fund

The objective of the fund is to provide the public with modern infrastructure to relieve current critical infrastructure blockages, thereby accelerating the delivery of houses in key urban areas currently experiencing housing shortages.

Local public infrastructure such as access roads and public services had been previously being paid for by local authorities from revenues received from local development projects. These costs were in turn passed on to the purchase price of the property. The serious decline in housing development since 2008 meant that local authorities no longer have the resources to fund the provision of local public infrastructure. Leading to a serious deterioration in local public infrastructure.

How Many Proposals Have Been Approved and what is the Cost

Over 34 proposals have been granted across 15 local authorities. The total cost of the project is €226.46 million of which €169.65 million is to be funded by the exchequer, and the remaining balance of €56.81 million will be funded by local authorities. Half of the funding will be provided to Dublin, a total of €113 million and its 4 local authorities. Cherrywood alone is expected to receive €15.9 million in funding for 8,000 planned new homes. Cork city and county councils will be receiving €46 million, with the remaining €67million to be divided among the rest of the country

How Many Additional Housing Units will be Provided

The fund has the potential to deliver 23,000 houses across the country by 2021. These houses are to be apportioned nationwide as follows:

  1. Dublin Area – 14,000 additional units will hope to be provided by 2021.
  2. Cork Area – 3,000 additional units will hope to be provided by 2021.
  3. Rest of the Country – 6,000 additional units will hope to be provided by 2021.

For more information please visit http://rebuildingireland.ie/news/local-infrastructure-housing-activation-fund-announced/

What questions do you have?

We are happy to help. Please post your comment below or call Jack Gahan from Corporate Finance Team on 01 677 9000. Alternatively, send him an email: jgahan@cooneycarey.ie

To keep in touch, connect with our friendly team on LinkedIn.

If you found this article interesting, please share it with other businesses. 

Posted on October 4, 2017 by Jack Gahan

6 Keys to Successful Working Capital Implementation

Companies have an obligation to release cash into a business from the balance sheet to fund growth. Companies should be focused on the implementation and support of a cash culture as appose to a profit focus. Many profitable companies fail due to inefficient management of debtors, creditors and stock positions.

Where to Start with Working Capital

A good starting place is for a business to examine its working capital equation. Inventory plus accounts receivable less accounts payable. It is important to note that the balance sheet only represents a fixed moment in time. A business must also be constantly looking at its inventory cycle, receivables cycle and payables cycle.

What are the Keys to Successful Implementation?

A successful working capital improvement programme can be comprised of six key elements:

  • Setting clear business objectives – Market leading companies establish a clear plan, forecast, and projections and incorporate their working capital cycle to reflect the same.
  • Calculate key metrics and improve – There are many metrics to measure a company’s working capital cycle: current ratio, quick ratio, receivables period, payables period and inventory period. Once calculated a company should strive to improve on them.
  • Strong Governance – Get the corporate governance structure in place to provide a smooth transition to a new working capital cycle.
  • Incentivize Management – Bonuses linked to working capital are a great way to motivate management to implement new policies.
  • Enable Management – Provide programmes and tools that will support changes in an efficient and sustainable manner.
  • Best Practise – New initiatives and actions should be integrated with a clear action plan and methodology.

What questions do you have?

We are happy to help. Please post your comment below or call Jack Gahan from Corporate Finance Team on 01 677 9000. Alternatively, send him an email: jgahan@cooneycarey.ie

To keep in touch, connect with our friendly team on LinkedIn.

If you found this article interesting, please share it with other businesses. 

Posted on September 26, 2017 by Jack Gahan

6 Things to Consider Before Selling Your Business

Despite global macro uncertainties, Irelands M&A (merger and acquisition) market is improving, with both buyers and sellers finding it easier to complete attractive deals in 2017. This increase is due to a number of factors: Improved banking environment, healthier companies and significant increase in additional funders coming on to the market. Below are a few tips to assist in maximising the outcome of any transactions in 2017.

  1. Assemble your selling team – A lot of time and effort is required preparing a business for sale, conducting detailed review of market, pricing analysis and assessment of structuring and tactical issues. The time involved in the sale process must not distract staff from their normal course of business, as any deductions in financial performance may lead to a deduction in sales price.
  2. Focus on Targets – Although this may seem like an obvious task, it is critical a business spends time analysing objectives prior to the sale. These may include considering whether you intend to sell the whole business or part of the business and if you and your senior staff are to remain in the business.
  3. Working capital – Having a healthy working capital balance can lead to a significantly higher sale price.
  4. Recurring profits – Profits can be adjusted for non – recurring expenditure and income. The deduction of items that are deemed to exceptional costs can lead to a higher profit and a higher price for the company.
  5. Keep an eye on tax – Keep an eye on the ownership structure of the business well in advance of a sale to determine how the beneficiaries of the sale will be taxed. All potential tax reliefs should be investigated.
  6. Stay focused – A large amount of time can be needed to maintain the momentum of a deal. It is fundamentally important that all work streams are managed until a deal is completed.

It is critically important to plan for any potential sale, ensuring the process is carried out in a professional and efficient manner in an appropriate timeframe.

What questions do you have?

We are happy to help. Please post your comment below or call Jack Gahan from Corporate Finance Team on 01 677 9000. Alternatively, send him an email: jgahan@cooneycarey.ie

To keep in touch, connect with our friendly team on LinkedIn.

If you found this article interesting, please share it with other businesses. 

Posted on September 23, 2017 by Jack Gahan

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