This foremost world-class manufacturing business was acquired with working capital injection estimated at £2.5 million saving all jobs.
Our client, regarded for more than a century as one of the foremost manufacturers in the world in its niche sector, had suffered a series of reversals of fortune not linked to the recession. Working capital and reserves had been exhausted, the bank – justifiably so – were unable to continue to offer the range of instruments necessary for the business to trade properly. The company had already entered into a CVA (110p in £ repayment).
We were introduced by the bank to locate urgent funding. Without a quick solution the business would have failed. This would have been a complete tragedy, not least given that the level of signed orders already received by the company would return it to profit in the coming year.
At the outset – some of the key factors:
- Annual turnover was down from a high of £12m to just £6m
- CVA liability exceeded £2 million
- Banking facilities crucial to foreign operations were no longer to hand
- Order Book was already £10 million and rising
What was achieved – the deliverables:
- Seven qualified investors were introduced within 21 days of instruction
- Two offers of funding materialised – one from a private equity firm for £2m
- The other from a Canadian corporation introduced by one of our investors
- Business was acquired, working capital injection estimated at £2.5 million
- All jobs were saved
- The CVA was renegotiated – to £0.20 in £ repayment