Oldbury Hill Garage Limited

Investment Requests for Acquisition Finance

Overview
Funding Required
£131,250
Offered so far
£2,130
Loan Term
60
Deadline:
15/04/2019
About the Business
Company Name: OLDBURY HILL GARAGE LIMITED Company Number: 11534473
Business Type: WHOLESALE AND RETAIL TRADE INCLUDING REPAIR OF MOTOR VEHICLES Years Trading: Less than 2 years
Business Location: Highbridge
About the Risk
Risk Rating: C

Default rate

16.1%

Bad debt rate

4.05%

Risk Idicators
Identified:
Business acquisition
This loan is to fund a business acquisition. The experience of the purchasers should be considered.
High level of borrowings
This business has a high level of borrowings in relation to its turnover
Disclosures
This listing contains disclosures from ReBS. Lenders are encouraged to read them in the profile tab
About the Security
Security Offered:
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2nd Charge Commercial Property - PG from Laurence Haring
Est. Equity: £90644.00

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All Assets Debenture - Fixed and floating charge over Yewshore Limited
Est. Equity: £34433.20

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Corporate Guarantee - Corporate guarantee from Yewshore Limited (value of £0 displayed as a debenture is also offered)
Est. Equity: £0.00

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All Assets Debenture - Fixed and floating charge over the operating company, Oldbury Hill Garage Limited
Est. Equity: £0.00

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All Assets Debenture - Fixed and floating charge over the holding company, Coco Commercial Limited
Est. Equity: £0.00

Important Files
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Who are we?

My name is Laurence Haring . I am the director of Oldbury Hill Garage Limited . The company has been formed to acquire the freehold of a currently fully operational petrol filling station and convenience store.

You may have already heard of me as I am an existing borrower from ReBS under Anzoff Limited and Yewshore Limited, 2 successfully profitable businesses that I am proud to say have an impeccable payment record with ReBS. Yewshore Limited facility was taken in October 2014 and matures in October 2019.

The business we are looking to acquire has traded successfully for almost 40 years under the same ownership and the sale is for retirement purposes. We believe there is significant upside to the business.

READ MORE...

Details

Who are we?

My name is Laurence Haring . I am the director of Oldbury Hill Garage Limited . The company has been formed to acquire the freehold of a currently fully operational petrol filling station and convenience store.

You may have already heard of me as I am an existing borrower from ReBS under Anzoff Limited and Yewshore Limited, 2 successfully profitable businesses that I am proud to say have an impeccable payment record with ReBS. Yewshore Limited facility was taken in October 2014 and matures in October 2019.

The business we are looking to acquire has traded successfully for almost 40 years under the same ownership and the sale is for retirement purposes. We believe there is significant upside to the business.

READ MORE...

A loan of £125,000 (plus fees), is sought from the ReBS lender base to contribute towards this purchase.

Funding

The cost of the freehold purchase along with goodwill is £860,000. This represents a multiple of circa 8.5x current years earnings which is a fair median to the industry average. Some sites have been selling between 10-12x multiples.

A professional valuation has been done and verified this purchase price.

The company has already had a mortgage of £559,000 approved with HSBC at BR + 2.79%, which is competitive. We had offers from all the major banks.

In addition to the mortgage, additional funds for purchase and working capital of circa £400,000 are needed. The majority of this will be coming from personal savings, inter–company transactions, petrol company and shop supplier facilities. The remaining £125,000 is being sought from the ReBS membership.

Loan Offers
Business Profile

What is the loan for?

A loan of £125,000 (plus fees), is sought from the ReBS lender base to contribute towards this purchase.

Funding

The cost of the freehold purchase along with goodwill is £860,000. This represents a multiple of circa 8.5x current years earnings which is a fair median to the industry average. Some sites have been selling between 10-12x multiples.

A professional valuation has been done and verified this purchase price.

The company has already had a mortgage of £559,000 approved with HSBC at BR + 2.79%, which is competitive. We had offers from all the major banks.

In addition to the mortgage, additional funds for purchase and working capital of circa £400,000 are needed. The majority of this will be coming from personal savings, inter–company transactions, petrol company and shop supplier facilities. The remaining £125,000 is being sought from the ReBS membership.

Why consider investing?

As a director who has used ReBS before (Anzoff Limited and Yewshore Limited), I am familiar with the funding system and process. I would hope that my previous repayment record with these companies demonstrates not only my experience in this industry, but also that I do not take on commitments that I do not believe I would be able to service. As previously advised, I will be providing a significant amount of money myself for the purchase and for working capital.

Additionally, due to the facilities that I already have been offered from fuel distributors and shop suppliers, a significant amount of working capital will be created within the first 6 weeks once agreed credit terms start to be realised, after having paid for stock at value on the day of acquisition.

I would invite lenders to peruse the business plan which has been added to the listing to get a full idea of the proposition, our plans and why we think it is a sensible purchase.

The business plan provides an interesting insight into trading as an independent petrol filling station along with information on the plans and changes that we are looking to implement whilst growing the business.

We have also provided profit forecasts to give further insight into the financial performance that we believe the business can achieve, firstly in the short term and then providing further growth going forwards.

Disclosure

Lenders should be aware that the target for this acquisition deal is a freehold property currently owned by a partnership, not a limited company. We have been provided with the financial statements for the existing partnership, but as a non-limited company they do not have the same statutory requirements for keeping and filing financial statements. Therefore:

1) No Balance Sheet has been provided for the partnership, although lenders will be able to see details of the assets being purchased in the business purchase sheet attached.

2) Although the financial statements for the partnership have been assessed by our forensic accountant, the financial information provided in the finances tab and for download has not been filed at Companies House.

Security

This loan will be secured by way of a Personal Guarantee and an All Assets Debenture.

A PG will be provided from Laurence Haring. Mr Haring has an estimated net worth of £90,644.00 derived from his ownership of his personal residence, a property with an estimated value of £540,000 with £166,000 estimated equity. Mr Haring also owns a commercial property with an estimated value of £220,000 with £110,000 estimated equity, but as this is owned through a limited company of which he is the shareholder, it has been discounted from the personal net worth calculation.

A debenture will also be provided from Yewshore Limited, a connected company owned by Mr Haring. This will create a first priority fixed and floating charge over all of the assets of this company. These include fixed assets with an estimated book value of £172,166 (based on the most recent filed accounts).

Debentures will also be provided over the holding and operating companies involved in this purchase. The holding company, Coco Commercial Limited, and the operating company, Oldbury Hill Garage Limited, will both provide all asset debentures. These debentures will be second priority and will sit behind the bank's first priority charges. As such, no realisable value has been assigned and they are given mostly as a 'belts and braces' approach to cover the possibility that assets are transferred from one company to another without the permission of both secured creditors.

To complete the security package, a Corporate Guarantee from Yewshore Limited will also be provided.

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