Tax Grotto

International executive search firm, GRS group, backed by private equity firm Penta Capital and supported by Investec, has today announced a management buy-out of the company.  Total funding for the transaction was £18m.

GRS, founded in 2002, has developed into a well-diversified business in terms of customers, geography, and sector.  With its headquarters in Brighton, GRS operates out of 7 offices in Hong Kong, London, Munich, New York, Paris, and Zurich.  GRS focuses within the risk, legal, tax and interim markets.

GRS CEO, Ken Brotherston, is leading the buy-out team.  The new board of GRS will include Mark Webster, Finance Director, and Mark Phillips, a partner at Penta.  The management team includes Lucinda Brown (Head of Legal); Bhupesh Darbar (Head of Asia); Greg McHugh (Head of Tax); and Dan Richards (Head of Risk).

Existing partners and founders of the company, Richard Paisley and Dan Chester, will continue to have a shareholding in the business.

Ken Brotherston, CEO of GRS, said, “This is great news for GRS.  The company already has a fantastic management team, a proven track record, and an outstanding client list. Penta recognises the huge strengths of the GRS business model and its resilience in the current economic climate.  We look forward to a very exciting future for the company and to providing an even better service to our clients.”

Mark Phillips, Partner of Penta Capital said, “We have invested in GRS because we believe in its strategy, its people, its leadership, its specialist focus and international reach, and its vision.  GRS has an excellent reputation with its customers and partners and provides an opportunity for us to back an experienced management team in niche markets with strong growth prospects.  The GRS business plan matches our appetite for supporting established businesses with deep industry knowledge in their markets.  GRS is as specialist as it gets in the recruitment space.”

James Cullen of Investec Growth & Acquisition Finance said “Ken Brotherston is a proven individual in the sector with a track record of success. We found the business with it’s positioning and in-depth, specialist knowledge of it’s chosen markets to be compelling. With the backing of Penta and our mix of asset based lending and acquisition finance it is extremely well stanced to take advantage of market opportunities. We are absolutely delighted to be backing Ken and the team at GRS.

Dan Chester, Founding Partner of GRS said, “I’m absolutely delighted with the outcome of this deal, I could not leave the business in better hands.”

Richard Paisley, Founding Partner of GRS said, “The future of recruitment is about being specialist. The management team has built their solid client relationships on this basis, so I fully expect to see GRS go from strength to strength as the most admired executive search business in its chosen markets.”

Corporate finance advice was provided by Katie Folwell-Davies and Tom Gallop at Deloitte & Touche. Legal advice was provided by Simon Fielder at Bird & Bird.

The GRS Group is an international recruitment consultancy whose services include retained search, contingency search, advertised selection and interim solutions.  The group focuses on senior manager and director levels within risk, legal, tax and interim and has operations across the UK, Europe, US, Asia Pacific and the Middle East.
GRS’s consultants specialise in one particular function within a sole industry sector, making them real experts in their field.  This structure distinguishes GRS from other consultancies.  Most GRS consultants have had careers in the fields which they recruit for.
GRS is a ‘Real Business 50 to Watch’ company. The firm was also a finalist in Ernst & Young’s ‘Entrepreneur of the Year’ awards in 2006. GRS’s training and development of its staff has also been recently commended by Recruiter magazine for providing best practice service delivery to its customers.

McAfee, Inc. (NYSE: MFE) today announced that Albert A. “Rocky” Pimentel is joining the company as chief operating officer and chief financial officer beginning May 15. He will be responsible for leading all worldwide finance, IT, facilities and manufacturing functions, reporting directly to Chief Executive Officer and President, Dave DeWalt.
“Rocky brings proven business transformation skills across finance, mergers and acquisitions, as well as overall business leadership,” said DeWalt. “His experience in the security industry at Zone Labs, combined with his extensive international company background at high-growth companies like LSI Logic and Conner Peripherals, gives him the ability to contribute broadly to our business operations and help drive stockholder value in the coming years.”

Pimentel is an industry veteran with more than 30 years of change management experience with small, medium and large companies, having most recently served as the executive vice president and chief financial officer of Glu Mobile. Before Glu Mobile, Pimentel served as executive vice president and chief financial officer at Zone Labs, where he oversaw the company’s successful negotiation and merger with Check Point Software. Prior to that, Pimentel was a partner with Redpoint Ventures. Pimentel also held the positions of senior vice president and chief financial officer of WebTV Networks, which was acquired by Microsoft in 1997, senior vice president and chief financial officer of LSI Logic Corporation and member of the founding team of Conner Peripherals, Inc., which was acquired by Seagate in 1996.

“McAfee’s track record of innovation and outstanding talent was a major factor behind my decision to join the company,” said Pimentel. “The security industry is a dynamic, high-growth industry and with the strength of its management team and its product and technology leadership McAfee is positioned perfectly to compete and win globally for years to come.”

Pimentel holds a Bachelor of Science degree in commerce from Santa Clara University and is a graduate of the executive MBA program at Stanford.

About McAfee, Inc.

McAfee, Inc., headquartered in Santa Clara, California, is the world’s largest dedicated security technology company. It delivers proactive and proven solutions and services that secure systems and networks around the world, allowing users to browse and shop the Web securely. With its unmatched security expertise and commitment to innovation, McAfee empowers home users, businesses, the public sector and service providers by enabling them to comply with regulations, protect data, prevent disruptions, identify vulnerabilities and continuously monitor and improve their security. http://www.mcafee.com.

Kansas City Southern has announced that the finance department has promoted two individuals. James D. Byrd was promoted from assistant vice president taxes to vice president international taxes, and William H. Galligan was promoted from assistant vice president to vice president investor relations. Mr. Byrd reports to Michael K. Borrows, senior vice president and chief accounting officer. Mr. Galligan reports to Patrick J. Ottensmeyer, executive vice president and chief financial officer. “I am pleased to recognize the contribution of two important members of our finance leadership team with these recent promotions,” said Mr. Ottensmeyer.

Mr. Byrd, a certified public accountant, has 33 years of tax experience. He joined KCS in 2004, after having spent nine years with Black & Veatch, where he was focused on international taxes. He has also worked for H.B. Zachary and Fluor Corporation. He holds a bachelor of science in accounting from Arkansas State University.

“Jim has a strong background in domestic and international taxes, which is why he is well-suited to lead the tax organization,” said Mr. Borrows. “However, the key to why Jim is a respected leader in the company and industry is his success building a talented, global tax team with a focus on strong internal controls and strategic tax planning that has driven tremendous value to the enterprise beyond well executed compliance.”

Mr. Galligan has 29 years of corporate communications experience. He joined KCS in 1992 as assistant vice president corporate communications, later focusing on investor relations. Prior to that, he spent 13 years managing corporate communications and public relations for United Illuminating, an electric utility in Connecticut. He holds a master’s degree from New York University and a bachelor of arts degree from George Washington University.

“Bill has demonstrated tremendous determination and drive in his efforts to broaden the understanding of the KCS value proposition among our shareholders and the Wall Street community,” said Mr. Ottensmeyer. “He has worked tirelessly and passionately to make sure our investors understand the value of the franchise, as well as the key strategies for executing our long range plan. His efforts, particularly following the development of our five-year plan last year, have greatly improved KCS’ image in the financial marketplace.”

Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS’ North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Mexico and Canada.

McKenna Long & Aldridge LLP (MLA) today announced that it has added three tax partners to its nationally-recognized corporate department, and the firm plans to bring on additional tax
attorneys in the near future. The firm is expanding its tax capabilities to meet the broadening needs of its current clients and to attract new clients with all levels of tax needs. The new partners are Donald M. Etheridge, Jr., Scott A. Harty and Ann E. Murray.

The Legal 500 recently recognized MLA’s Corporate Practice as one of the best on the East Coast.

Don Etheridge joins the firm from Womble Carlyle Sandridge & Rice. Scott Harty and Ann Murray come from Smith, Gambrell & Russell, LLP.

McKenna Long & Aldridge LLP is an international law firm of lawyers and public policy advisors. The firm provides business solutions in the areas of environmental regulation, international law, public policy and regulatory affairs, corporate law, government contracts, intellectual property and technology, complex litigation, real estate, energy and
finance.

Duff & Phelps Corporation (NYSE: DUF), a leading provider of independent financial advisory and investment banking services, today announced the formation of its Strategic Tax Advisory Services practice. The practice will be co-led by new Managing Directors Joseph Schmidt and Catherine Hunter.

Gerry Creagh, President of Duff & Phelps, said, “In the current market environment companies are increasingly seeking opportunities to generate tax savings. Our Strategic Tax Advisory professionals take a holistic approach to proactively identifying and documenting tax benefits associated with new asset construction.”

The Strategic Tax Advisory Services practice provides advice on procurement processes related to capital investments captured within a company’s supply chain. The new practice consists of a multidisciplinary team focused on optimizing the net present value of capital investments through property tax savings, business incentives, sales and use tax credits and reductions in federal and state income tax. In addition to ensuring appropriate assessments are made, these services help companies mitigate tax audit exposure, improve compliance with Sarbanes Oxley and enhance stakeholder value.

Schmidt joins the firm’s Atlanta office from Deloitte Tax LLP, where he was Tax Director and a member of Deloitte’s National and Multistate Restructuring practice. Schmidt led the development of Deloitte’s transaction tax procurement initiative and helped to form Deloitte’s national multistate energy group. With over 30 years of experience, Schmidt has demonstrated expertise in multistate income, franchise and sales and use tax with an emphasis on affirmative direct and indirect tax planning through the use of corporate structuring or restructuring.

Hunter joins the firm’s Dallas office from Kells Group, where she was a Founding Partner. During her tenure at Kells Group and another previous employer, A.T. Kearney, Hunter mapped corporate strategy and business transformation for Fortune 1000 companies, specializing in post merger integration, operational process improvement and supply chain optimization. Hunter’s experience also includes corporate finance and underwriting, including mergers, acquisitions, corporate divestures, financial restructuring, strategic planning and business valuation.

Tab Weaver, Head of Duff & Phelps’ Specialty Tax Practice said, “Joseph and Catherine bring years of supply chain tax and consulting experience with Fortune 500 companies. Our clients will benefit from their collective experience in identifying, securing, documenting and defending tax positions associated with new asset construction.”

About Duff & Phelps

Duff & Phelps Corporation (NYSE: DUF) is a leading provider of independent financial advisory and investment banking services, supporting client needs principally in the areas of valuation, transactions, financial restructurings and disputes. Founded in 1932, the Company’s mission is to protect, recover and maximize value for its clients by providing independent and unbiased advice on issues related to highly technical and complex assessments of value. Services include financial reporting valuation, tax services, real estate and fixed asset services, M&A advisory, corporate finance consulting, fairness and solvency opinions, restructuring advisory and dispute and legal management consulting. Investment banking services are provided by Duff & Phelps Securities, LLC. Duff & Phelps Securities, Ltd. is authorized and regulated by The Financial Services Authority. With more than 1,000 employees serving clients worldwide through offices located in the United States, Europe and Asia, Duff & Phelps is committed to delivering insightful advice and service of exceptional quality, integrity and objectivity. For more information visit www.duffandphelps.com.

British businesses and the Government will form a new working group to look at the long-term challenges facing the UK tax system and ensure competitiveness remains at the heart of any future reforms, the Chancellor of the Exchequer, Alistair Darling announced this week.

In his speech to a Chatham House conference on “New Financial Frontiers” he set out plans for a new working group, to be chaired by Financial Secretary Jane Kennedy with business representatives.

The group will discuss ways in which the tax system can provide the long-term certainty that multinational companies need in the face of increased competitiveness and other global challenges facing both business and government.

In his speech the Chancellor said:

“We need to anticipate a growing problem for all governments – how to protect revenues in an increasingly global market place for goods and services while promoting the competitiveness of our businesses so that they can take advantage of open markets.

“Tax is one element of the strong business environment which makes the UK competitive at a global level. The UK corporation tax rate is one of the lowest in the G7.

“I am determined that we do what is necessary to remain one of the world’s best places to do business – and critically to ensure that we maintain our strong and resilient economy and our position as the world’s leading financial centre.

“I am therefore bringing together a group with industry representatives to discuss ways in which the tax system can provide the long-term certainty multinational companies need, considering the competitiveness and other challenges facing both businesses and government.”