A long-established 100% family food retail business. Husband and wife are the shareholders, while their two grown-up daughters are involved in the business in different capacities. The business traded from a combination of freehold and leasehold premises, and was valued at £10m, with a turnover of £12m, and earnings of £1.2m before interest and tax. The business was looking to acquire the freehold of one of the leasehold properties that they had traded in for two years, valued at £1.5m.
Mr B had no cash contributions as any extra funds were invested into additional stock. Furthermore, the banks’ attitude to transactional lending had changed and they would not support the business or consider the proposition on investment criteria.