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Case Studies, Urgent Funding

Niche Manufacturing Business Saved in the 11th Hour with £2.5m Funding

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 

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