We had the call from the potential client on the Thursday.
He and his team had been researching the industry for some time to spot potential targets and had identified an underperforming, non-core subsidiary of a stressed business under pressure from its bankers to retrench and reduce borrowings.
It was in exactly the right sector, had an under exploited brand name with obvious potential, and looked an ideal foundation stone candidate for the consolidation play they had in mind.
So the enquiry was very simple, they were in conversation with a potential investor but things were going too slowly for comfort, so might we be able to find an alternative equity backer to fund the deal at £10m+?
They provided their outline of the deal by email on the Friday.
We prepared a teaser for investors which the client signed off on the Saturday, and which was then circulated to around 40 potential funders on the Monday.
By close of play on Tuesday the client was talking to five new potential investors.
By the Friday, that number was eight.
By the following Tuesday, the client had agreed terms with a funder prepared to back them in not only the initial deal, but also to finance their planned follow up acquisition.
As a result, the client had written to all of the funders, including the one they had already been in discussion with when they called us, to thank them for their interest but to advise they would not be taking things further.
We are creating a range of FREE to download e-books on critical business subjects so to subscribe for these and our monthly newsletter, follow the links below:
|What To Do When You Need Business Crisis Cash
To request your FREE e-book and monthly newsletter subscription please complete the form or