Week ending 18th Jan 08

Hi all and Happy New Year,

With Christmas break and settling back into things – it's been a while since I've written a blog. In my last blog, I mentioned I was going to be attending a graduate networking event. The event was held in Edinburgh and it was great to see familiar faces and meet new graduates. Apart from being a good jolly, the networking event also provided the opportunity to meet business managers from various departments in Corporate. This was extremely useful, as I was gathering thoughts on areas of interest for my final placement. Once the free drinks and food had been consumed we (including a few die hard managers) moved on, as usual, to explore Edinburgh's night life. As always, this turned out to be a confusing affair involving a mass walk of Edinburgh before we ended up in a club. There, some people chatted and others threw some shapes before we dispersed at the end of the night.

Following the networking event, I carried out some research into placement areas I would like to experience and submitted my form. I'm hoping to hear the outcome of my placement in the next week or so! Once I have confirmation, I will have to begin the process of searching for accommodation once again. Though this can be a bit of a chore, I am looking forward to experiencing life in a different department and location.

Another key activity which took place before the Christmas break was my interim review. This gave my manager a chance to convey the team's thoughts on my performance to me. Equally it provided me with the opportunity to discuss the development activities I would like to fulfil before the end of the placement to him. Fortunately his comments were positive so I was able to relax that little bit more at our Christmas dinner. One of the highlights of the dinner was the speeches that all new members to the team had to deliver. For my speech, I just managed to reel off a few poor jokes. Lucky for me, most people were merrily drunk by then so I managed to get a few laughs.

It was nice going back home to the Midlands for Christmas and New Years. The first week back at work was tough but I'm now getting back into things as we are in the early stages of working on a few deals which may come to fruition.

As always, I will keep you posted on how things unfold.

Regards,

Vish.

Hi all,

The deal I have been working on has officially completed and I can now talk about it. Confidentiality is a key issue in deal teams as we often come into contact with market sensitive information. In deal teams, people are very secretive whilst a deal is on and then move to the opposite extreme of actively publicising a deal once it has been completed. So I am now doing my bit in this blog!

The Integrated Finance (IF) Scotland team supported the Secondary Buy-Out of Fishers Services Limited by providing a £40m debt and equity package. Fishers are a leading provider of textile services in Scotland and specialise in the provision of flat linen to hotels, contract laundry and garment rentals. The deal we completed will enable the Company to continue its growth and allowed management to realise value now and obtain a majority equity stake in the business. Bank of Scotland has had a relationship with Fishers for over 80 years and this deal ensures our ongoing relationship for years to come.

Though the deal has completed, our work on this project hasn’t. Over the last two weeks I have been working on the handover process to the Integrated Finance Asset Management team who will maintain the day to day relationship with the Company. I have also been involved with publicising the deal both within the bank and externally i.e. through press releases. Fortunately the late nights have drawn to a close however the downside of this is no more takeaways which mean's I have to cook at home again. Aside of this project, I have been carrying out research into an oil & gas services company and writing an origination note to present my research to the team. I have also completed an analysis on deals which have been completed in Scotland for our regional director. The analysis illustrates who our competitors are and indicates how we are placed within the Scottish Buy-Out market.

Outside of IF, I attended a Bank of Scotland Corporate Assessment Centre on Monday to answer candidate questions about the graduate programme. It wasn’t too long ago when I was doing my best to get through the challenges of the day and asking questions to graduates. I look back at my assessment as a great experience – I guess that’s easy to do when you have been successful. I have to say, I don't envy the candidates and was glad to be there in an assisting capacity only. Good luck to those that were at the assessment centre and to those who will be attending in the future.

I am going to leave the blog here as I have to make my way down to a graduate networking event. This will be an opportunity for all the graduates on the programme to meet and to also network with business managers from various departments in the bank.

Regards,

Vish.

Week ending 30th Nov 07

Hi all,

The last two weeks have been very hectic. In my last blog, I mentioned the Integrated Finance (IF) team was in the latter stages of a deal. We were successful with our offer and have subsequently entered into exclusivity. As a result, there has been a lot of work involved with finalising details. Transactional teams have to comply with strict deadlines, consequently, working hours during the height of a deal can be quite long. As the level of contribution I can make is limited, I have not had to stay back very late (so far). However, I still managed a 10.30pm finish on Thursday. It wasn’t too bad and sort of reminded me of late nights finishing assignments at University, especially when the team ordered essential brain food aka pizza to keep us going. We hope to complete the deal very soon and I will keep you updated with progress.

On Tuesday 20th November, the IF Scotland team held a voluntary day. We spent the day helping out at the Solstice Project in Aberdeen. This is a gardening project which offers training and employment opportunities for people with mental health problems. The opportunities that Solstice offers vary from growing plants to administrative work. The organisation also enables individuals to gain formal qualifications in horticulture. We worked alongside members/employees at Solstice to plant different types of heather. The heather will later be sold on a wholesale basis to gardening centres. The attached photo is of a very tired IF Scotland team after we planted 11,000 plants! The day was extremely rewarding as our efforts equate to a days work for the project. It was also a very good team bonding session for us.

I'm going to leave the blog here as I am currently snowed under with work.

Regards,

Vish.

Week ending 09th Nov 07

Hi all,

It's been a while since I completed a blog, in fact I think I have disappeared off the radar since commencing my new placement in Integrated Finance (IF)! Though I would like to claim it is because I have been extremely busy, the real reason is that I have been away on exam leave followed by annual leave.

My move up to Edinburgh was drama free, although it took me a while to figure out the unusual heating system I have in my flat. I have been settling in to my surroundings well. I expected the weather in Edinburgh to be horrific, but it has actually been quite pleasant…hope it stays this way!

Everyone in my new team has been fantastic at welcoming me. There is a good mix of people from varying backgrounds including some who were on the graduate programme in previous years. It is always inspiring to see former grads in significant positions within Corporate. The IF Scotland team is split across two locations, Edinburgh and Aberdeen. The Edinburgh office concentrates on mid market deals, of all types, throughout Scotland. The Aberdeen office focuses on deals relating to mid market businesses involved in the oil and gas services sector throughout the UK. I am currently based in Edinburgh but I am hoping to spend some time up in Aberdeen over the course of the placement. This will enable me to learn more about the oil and gas sector, in which Bank of Scotland is a leading financer.

I have thoroughly enjoyed the work in IF so far and have fortunately joined the team at a great time as we are in the latter stages of a deal. Consequently, I have been involved in reading various due diligence reports on the target business i.e. commercial, insurance, environmental etc and have contributed to querying the diligence which has been supplied. This is an important part of the deal process as it is vital that the bank fully understands the business it is proposing to invest in. As I am new to the team, I haven’t been able to get involved in preparing a financial model or credit report for the deal. However, another key requirement of the team is to continue looking for other deal opportunities and I have been active in this area. As part of the IF origination effort, I have spent time preparing short reports on businesses of interest. Preparing the report entails researching:
•The nature of trade of the business
•The market
•Key risks
•Competitors
•The company's outlook on social and environmental responsibility.
•Financial performance

Once a report is prepared, it is circulated amongst the team and discussed in order to establish whether the opportunity is one which IF wishes to pursue further.

The Bank of Scotland office in Edinburgh is substantial compared to previous offices I have worked at in my last two placements. There are numerous departments in the building and as a result, a number of grads. It has been nice to meet for lunch and after work drinks. Speaking of lunch, that's where I am off to now – Regards Vish.

Hi,

A lot has happened since my last blog. I have completed my placement in Leveraged Finance Asset Class Management (LFACM) and I am due to commence my placement in Integrated Finance.

The last two weeks in LFACM were by no means quiet. On the 18th of September, I joined one of the directors and went to a client visit. The meeting was arranged to discuss business performance and to initiate the process to renew facilities for another year. I find client meetings very interesting; you tend to find different businesses have their own management styles. Likewise, Relationship Manager's (RM) also have their own way of approaching customers. The meeting was with the Managing Director and Financial Director of the company and included a site visit followed by lunch. It's always nice to partake in client entertaining but nothing comes for free…..following the meeting, I was told by my manager that I would be completing the renewal report!

With guidance and assistance from the RM and other analysts within the LFACM team, I carried out a financial assessment of the business along with research into business strategy, changes in management structure etc. This information was then used to draft the report.

In the same week, I also had my placement review with my line managers. A formal review is carried out twice in each 6 month placement (halfway through and at the end). My review went very well; I was pleased to hear that management saw me as a valued member of the team.

In my last week of the placement, the team went for a pub lunch as a farewell to me and a welcome to the new graduate who has joined the department. I also met up with the other graduates in Birmingham for a meal. We will all be heading off to different destinations now. Looking back, the last 6 months has really flown by. I can't believe I am now mid-way through the graduate programme! I have learnt a significant amount throughout this time and I am confident this will continue as I progress on to my 3rd placement which will be in Integrated Finance.

Integrated Finance (IF) provides a debt and equity offering to customers. This division of BoS Corporate differs from private equity houses primarily because IF takes a smaller equity stake in the business, is willing to support management for a longer period of time and enables management to retain control of the business. I think Integrated Finance will be a fantastic placement. So far on the programme, I have worked within a portfolio management environment only. Hence, participating in a transactional team will be a totally new, exciting and challenging experience. Furthermore, this placement will enable me to learn about equity investment which will be interesting.

Before I start my new placement, there's the small issue of moving all my possessions from Leicester to Edinburgh! Wish me luck – im going to need it!

Hi,

I have fulfilled a multitude of different tasks recently. The most significant has been the completion of my own credit report. This task is not commonly carried out by junior analysts. However, the bank favours the need to challenge graduates. I am very grateful for the opportunities I have had to complete credit proposals as this is something that will become an integral part of my role as my career progresses.

The report I wrote, relates to a connection that has been with Bank of Scotland for many years. Originally, Bank of Scotland and a syndicate bank assisted a private equity partner in acquiring this business from its Plc parent. The business was then split in two. When this occurred, Bank of Scotland provided debt to one of the businesses and the syndicate bank funded the other business. In 2006, the business was further disbanded when the private equity house realised the value of the company through a sale. The various factions were sold to some international Plc's. Bank of Scotland still continues to provide banking to the businesses and my report was concerned with the renewal of facilities for their forthcoming financial year.

Before writing the report I had to complete numerous tasks some of which are listed below:

• Conduct research into the companies and their respective Plc parents
• Investigate the sector in which the businesses operate.
  
• Analyse financial performance from the past, present and future using a combination of audited accounts, management accounts and forecasts.
  
• Examine management structures and evaluating the competencies of key management.
• Carry out financial modelling to assess viability.

This information was then used to collate my report. I was very pleased to receive confirmation from credit sanctioning that my report had been approved and that the sanctioner's felt my report style was good.

Since my last blog, I used my relocation allowance to make another trip to Edinburgh in order to secure accommodation before the commencement of my next placement. I saw some potential flats on the internet on Monday, booked a day off with my line manager on Tuesday, arranged my flights on Wednesday and went to Edinburgh on Thursday. On the way to the city from the airport 2 of the 5 viewings I arranged cancelled as the flats went that morning! Of the other 3, the first one I saw was not even fit for students to live in. The next one I saw was perfect, it was literally a stones throw away from work. Unfortunately the vendor had 17 people, including myself, interested in the place. In the end, he picked out of a hat and it wasn’t meant to be. Just as I was losing all hope I went to see the last place. Though not a 5min walk from work this flat is a respectable 15min walk away. The flat has recently been refurbished and is within my budget so I decided to take it.

I am now looking forward to starting work in Edinburgh and my next blog will be posted once I am there!

Hi,

The week has been busy as usual. As I have had an increasing amount of items on my task list, my line manager has given me a bit of a breather by asking the directors to divert tasks to the other analysts within the team. This in theory should help me to reduce my workload.

I spent a large portion of the week conducting a review on a connection which has recently come into the Leveraged Finance Portfolio. The department has devised checklists which provides reminders to; Verify all due diligence (i.e. financial and legal), Communicate the arrival of the customer to all factions of the bank (i.e. Business Visa, Asset Finance etc), Update all bank systems, ensure all fee's are being taken correctly etc. Though time consuming, this is a highly important task and provides me with a great development opportunity. As a result of this activity I have become more familiar with legal documentation, the banks systems and banking processes. Furthermore, I have learnt about the services provided to customers via other departments in Corporate and the wider HBOS group.

On Friday I had a review of my placement progress with my line manager. During the start of the placement I was daunted by the list of development activities which were presented to me for completion. I am now much more relaxed as things have come together over the last 3 months. Without me realising, I have been fulfilling my learning objectives. During the meeting my line manager also informed me that I will be responsible for introducing the new graduate (my replacement) to working within the Leveraged Finance Team. Given the nature of the role, I feel the new graduate may find aspects of this placement challenging as he will be on his first placement. However, I feel the placement will set a very strong foundation for future placements and an eventual career path.

In other news, I went flat hunting in Edinburgh over the weekend in preparation for my next placement in Integrated Finance. It was disappointing to say the least. I booked my flight last week only to then discover that most letting agents don’t hold viewing's over the weekend. In the end I managed to arrange a few viewings but all the places I saw were very grotty and unjustifiably expensive. So the search continues, I feel I will be making the most of my relocation allowance and hope to go up again during a week day.