banks/investment

[sparky011]

hi Guys can any one help me out a bit,

whats has been ure opinion on the banks and wheres the best place to get investment.

im looking into buying out a company at the moment and am looking at borowing around 2-3 million pounds, this money will be to buy out the directors, the company has a large turnover and makes good prophit and has assets so the buisness would be able to support the loan,

where do you think the best place is for financing this deal and what and how much contributions do you think i will have to put up.


i am in the early stages so there is a lot that i havent looked at or considered so any advice would be great.

[Billmccallum]

It's likely that you will need £300K to £500K of your own capital to invest, servicing a loan of £2 to £2.5 million at just 5% would cost £125K a year just for the interest (based on a very favourable rate, which could climb as high as 10-15%).

You would need to demonstrate a track record to get this level of funding and if you don't have your own capital, almost impossible.

[scothost]

Not so sure I agree with Bill, however there are questions that need to be answered.

As there is an established business there, is there any security available such as premises or the like?

An established business is more likely to attract bank investment at 100% of the amount required if security is available along with a track record that demonstrates existing and on-going profitability.

You need to test the waters. A competantly put together business plan taken around 2 or 3 of main banks that are lending in this area such as Barclays would be my first step.

Lee

[CraigieDD]

I agree with ScotHost.

If you put together a solid case and the numbers add up, backed up with solid evidence then you CAN get investment to this level. Just make sure there's no cracks in your plan though. ;-)

Make sure you're enthusiastic without being "manic".
When it comes to a serious point in your presentation, lower your tone and slow down.

[mckellar]

when i was looking for an investment loan (very much smaller than 2-3million pounds however) i was granted 100% purely based on the companies previous accounts and contracts granted.

for example - (made up figures to prove my point)

company A would sub out £500 a month
company B would sub out £350 a month
company C & D would sub out £350 combined a month

i was looking for (made up) £10,000 and the banks realised that there was enough money there for me to work and also to pay off the loan easily.

so you may wish to submit an accounts report stating any contracts of previous and on-going work gained

[andysmfc]

I'd learn to spell profit first , before I went looking for a 2-3 million investment

[oldeagleeye]

ANDY. this thread is nearly 3 months old and the OP hasn't been back. I am not surprised even with a space ship it must take quite a bit of time to get to the planet Zorbe and back.

Seriously. I gather from another post that

1) He worked for the company in question and left because he thought he knew how to run the company better than the 3 directors who had built it up into a pretty sound company from scratch.

2) He don't have any money of his own and asks on the other thread if he can use the companies own money to buy the company for him.

Unblieveable

Rob

[andysmfc]

haha some people are on another planet