Appraisal to support a management buyout of a business

The Brief

• Instructed by the Debt Advisory Dept. of a Top 4 Accountancy Practice
• to support a management buyout of a business
• ultimate lender being a relatively new entrant to the ABL market.
• to provide an appraisal of the contractors’ hire fleet and commercial vehicles to support a fixed term loan, undertake an accounts receivables review in support of a revolving facility and the valuation of 2 commercial properties for an additional term loan.

Logistics

• The business was a leading group of construction companies operating across the North of England and Scotland in civils, commercial build, social housing and facilities.
• Due to the nature of the business, most assets were located at customer premises.
• Collect sufficient data to identify assets for valuation on a desktop basis and to support a fixed charge.
• AR expertise involved assessing the value of contracts and contractual debt.

Resolution

• Utilising our vast database of auction comparable evidence to support a valuation of the hire fleet.
• Bespoke reporting to accommodate the contractual nature of the accounts receivable.
• The ability to provide valuations and reviews of not only 3 asset classes but also to be able to deal with, and understand, the contractual nature of the business.