A Great Start to 2011 for Beer & Young
We are delighted to announce a successful completion of a turnaround funding project that encapsulates all the reasons why we operate in this market.
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 our 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 2011.
At the outset – some of the key factors:
- Annual turnover was down from a high of £12m to just £6m for 2010
- CVA liability exceeded £2 million
- Banking facilities crucial to foreign operations were no longer to hand
- Order Book for 2011 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 in 2011
- All jobs were saved
- The CVA was renegotiated – to £0.20 in £ repayment
Managing Director M F-R said, “Beer & Young came to the rescue in the 11th Hour … our cash situation was critical and we only had about two months left before closing the doors. They worked round the clock to introduce us to several real investors from which we were offered not one but two deals – either of which we could have gone with. We survived because of their dedication and expertise and I am most grateful”.