Expert Spotlight: Meet Kroll's Restructuring Expert David Riley

David brings a unique perspective and ambition to the job of transforming the business in Manchester, thanks to his robust background in restructuring and corporate finance.

Reflecting on his journey, David shared insights into his diverse experiences, starting with his passion for rugby. “I began my journey at the University of Bristol. After university, I traveled around the world, playing rugby in France, America, New Zealand, and Australia." David has leveraged this experience in his professional career, learning from and mixing with rugby’s elite, including playing with ex-England head coach Stuart Lancaster at Leeds.

Professionally, David trained as a Chartered Professional Accountant and qualified with Arthur Andersen LLP and Ernst & Young Global Limited. He moved to Manchester in 2002 and has primarily worked in restructuring. He’s held various roles, including interim CEO and advisory partner at Crowe UK LLP. Recently, he joined Kroll in Manchester. “The growth potential here is enormous, and I’m excited to be part of this journey,” he said.

It Was Time to Join Kroll

When asked about his motivation to join Kroll David explained, “The opportunity at Kroll is immense. Manchester is a significant market with a strong advisory space. My goal is to bolster restructuring and expand beyond this capability. We should be offering M&A transaction advisory services and debt advisory as well. The market in Manchester is ready for this expansion, and I believe we can tap into the wider UK and global service lines to achieve this.”

Managing the challenges of different nuances of the markets in the UK is understood by David. He emphasized, “It’s crucial to be on the ground in Manchester. You can’t run this from London; you need to be here to understand the market’s idiosyncrasies. By being present, we can better serve our clients and tap into the local talent pool, which is substantial.”

David also shared how his personal life influences his work. “I commute to the office by train with my daughter, which gives us some quality time together. Balancing work and family is important to me, and it helps keep me grounded. My background in rugby also plays a role in my professional life. The discipline and teamwork required are qualities I bring to my work.”

A Budget for Smaller and Medium-Sized Enterprises?

Regarding the recent Autumn Budget 2024 announcement, David noted, “It will have significant implications for the market. Manchester, in particular, stands to benefit from these initiatives. The devolution from central government will further enhance Manchester’s growth potential.”

However, he also pointed out some challenges. “The budget includes measures that will impact businesses across the board. The increase in National Insurance contributions is a notable change. For smaller and medium-sized enterprises, this could mean higher operational costs, leading to tighter budgets and potentially fewer hires. Larger businesses, while also affected, might manage better due to their scale, but they will still face increased costs, especially if they employ a significant number of lower-paid workers.”

David expressed concerns about inflationary pressures. “The budget suggests that inflation may rise, which could lead to higher interest rates. Although a 25-basis point cut in interest rates is expected soon, further reductions are unlikely, or [may] be applied in 12 months. This means mortgage rates will remain high for longer, affecting both businesses and consumers. Higher mortgage repayments could reduce disposable income, leading to lower consumer spending, which in turn could impact businesses reliant on consumer demand.”

He added, “The budget’s emphasis on government spending, particularly in the National Health Service, is a double-edged sword. While increased spending can stimulate certain sectors, there is a risk that the funds may not be used efficiently. If government spending does not translate into tangible benefits for the private sector, the overall economic impact could be muted.”

The Power of PE in Manchester

Looking at key opportunities for growth in Manchester, David highlighted the significant possibilities. “The private equity base in the northwest is a major opportunity,” he noted. David believes that this sector holds immense potential to foster economic development in the region. By leveraging the strengths of this sector, Kroll can connect investments to critical areas, particularly during restructuring phases, to achieve successful turnarounds. If there is an opportunity to save a business or project, and stakeholders can benefit—including the wider community through job preservation and local economic stimulation—PE should be included to exhaust all avenues.

David also emphasized Kroll’s strategy as a partner. “As a firm, we can help businesses restructure on paper, which is essential for building a path to recovery. However, with strong ties to private equity, we can also implement these solutions, providing tangible outcomes and supporting the entire life cycle of the business.” By involving PE, Kroll can offer viable solutions to distressed businesses, turning theoretical plans into practical rescue options.

Additionally, David pointed out that traditional manufacturing, shared services, recruitment and the medical sector are strong in this region. Manchester also boasts a thriving technology hub, which presents further opportunities for growth and innovation. “The pool of talent around Manchester is huge, and these sectors are ripe for growth and innovation,” David remarked. By tapping into these diverse sectors, Kroll can expand its services and support the growth of local businesses, driving substantial economic development and contributing to the firm’s overall growth and success.

A Vision for the Future

Finally, David shared his goals for the future of Kroll in Manchester. “My vision is to establish Kroll as a leading advisory firm in Manchester, offering a range of services beyond restructuring. By leveraging our global network and local expertise, we can provide comprehensive solutions to our clients.

David Riley’s extensive experience and ambitious vision for Kroll in Manchester make him a valuable addition to our team. His commitment to growth, both professionally and personally, is inspiring. We look forward to seeing the positive impact he will have on our business and the Manchester market.