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Business Finance - Integral Vision Pt 3. Would you accept APA’s offer? If not what next? No. % Bank G’tee Red.Prefs Dr M 400 17 £ 30,000 £ 3,600 FM 400 17 £ 30,000 £ 3,600 PR 200 8 £ 1,800 PL 30 1 - SI 2 180 8 £29,820 APA £49k 1162 49 £300,000
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Business Finance - Integral Vision Pt 3 Would you accept APA’s offer? If not what next? No. % Bank G’tee Red.Prefs Dr M 400 17£ 30,000 £ 3,600 FM 400 17 £ 30,000 £ 3,600 PR 200 8 £ 1,800 PL 30 1 - SI 2 180 8 £29,820 APA £49k 1162 49 £300,000 2372 100
Business Finance - Integral Vision Pt 3 • Do you think APA really wanted the business? • What is the largest equity stake the founders would part with?
Business Finance - Integral Vision Pt 3 • Do you think APA really wanted the business? • What is the largest equity stake the founders would part with? 1030 X 100 = 2055 shares 50.1 (2055 - 1030 - 180) = 845
Business Finance - Integral Vision Pt 3 No. % Dr M 400 19.5 FM 400 19.5 PR 200 9.7 PL 30 1.4 SI 2 180 8.8 New 845 41.1 2055 100.0
Business Finance - Integral Vision Pt 4 No. % Bank G’tee Red.Prefs Dr M 400 20£ 30,000 £ 3,600 FM 400 20 £ 30,000 £ 3,600 PR 200 10 £ 1,800 PL 30 1 - SI 2 180 9 £29,820 3i 806 40 Loan £360,000 2016 100 • Would you accept? Refuse? Stall for BBHQ? • Or what?
Business Finance - Integral Vision Pt 5 • What would your decision have been at this meeting (i.e. assuming that you were Lucius Carey, with a 15% shareholding, and a director of the company)? • Spend more time with County Nat West? • Go back to 3i? • Something else?
Business Finance - Integral Vision Pt 6 • Look at the accounts on pages 4 and 5 • How else might the business have been financed? State: • The types of funds that might be available • The sources from which these funds could be obtained • The costs and methods of repayment attached to each source
Business Finance - Integral Vision Pt 6 • What position should Lucius Carey take over the offer from Frederico’s father? • What is best for the company? • Are these the same?