1. Funding In The Current Climate Phil Gray Commercial Director

2. Agenda for today The Market Today Funding An Acquisition Preparation Structuring A Deal Preparing For Exit Questions

3. The Market Today The banks are very much open for business with an appetite to lend Each deal “very much” on its own merits Lower debt multiples – 2 x EBIT LIBOR now back at its usual level is a clear indication of the lenders confidence slowly returning.

4. The Market Today Great focus on equity contribution and strength of balance sheet Cost of funds still relatively cheap Good house keeping is key Good opportunities exist offering excellent value

5. Funding An Acquisition Lenders look at the following Management credentials – incoming and remaining Sector Knowledge Serviceability – sustainable EBIT and how this translates into cash Strength of business within its market

6. Funding An Acquisition Lenders also look at the following The effects of the loss of key individuals Market Conditions, product life cycle Competition Environmental, legislation

7. Preparation Is Essential! Professional Business Plan 36 months projections A full pack of financials for target business Sounds basic but in the past decade of “fast cash” good preparation has been forgotten

8. Preparation Is Essential! If Lenders do not understand it they will decline it! What exactly are you buying? How is deal to be structured? What is your contribution/commitment to the deal - “hurt money”?

9. Structuring A Deal Cash Contribution Commercial Mortgage Invoice Finance Asset Finance Cash Flow Loan Deferred Consideration Enterprise Finance Guarantee Personal Debt Private Equity

10. Structuring A Deal Airport Vehicle Company – Gatwick Deal structured as follows £365,000Invoice Discounting £400,000Personal Remortgage £100,000Fleet refinance £400,000Deferred Consideration £135,000EFG Loan £1,400,000Total acquisition price

11. Preparing For Exit Work out your tax plan with your accountant to achieve the best exit strategy for you! Give thought pre sale to deferred considerations / earn outs Is it possible to re finance your assets or debtor book now to release cash and reduce the purchase price accessing a wider range of purchasers?

12. Preparing For Exit Have a full pack of information available for potential purchasers Be patient with the purchaser funding DOES take longer!

13. Thank you for your time today Any Questions?