Corporate Financing Case Study
The case of Company A
This was a building development company whose main project was the development of a block of residential flats.
The bank had advanced £1.85m against the project with a smaller amount being provided by the shareholders.
Due to the credit crunch and the general downturn in the economic climate the bank was reluctant to advance further sums to finish the project.
We were instrumental in assisting the directors in their negotiations with the bank. We prepared cash flow and profitability projections on the build out and discussed them with the bank’s quantity surveyor and officials. These showed that with a further advance of £450k the project would return the bank’s loan and interest and provide the client with a sizeable profit on the ultimate sale of the flats.
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