Case Study: Coach Company
The client need
After running a successful coach business for many years, personal circumstances meant the client’s previous business had failed and was facing the challenge of building a new business back up again from scratch. Despite winning numerous new contracts based upon his contacts in the industry, the customer was unable to obtain the finance needed to acquire a new coach through traditional routes due to trading and credit history and a non-existent current balance sheet. The client was adamant he could make the business work and successfully replicate his previous business model that had generated material profits. He had the model, the contacts and the contracts he needed – but no coach!
The Davenham solution
The Davenham team was approached by a long-standing broker, assessed the various contracts and matched them to the new Scania Coach (cost £250,000) to ensure the cashflows worked, liaising with the client and broker throughout the entire funding process. We then secured the purchase of the coach and the connected contracts. A “chicken and egg” scenario, however by working together we achieved the desired outcome to benefit all involved.
The client now has the coach working hard on multiple contracts and is looking to further expand his fleet. Following the completion of the deal, he told us:
“Davenham were great, they understood what I was trying to do and with a mixture of financial commercialism and a full understanding of the asset concerned, we got a transaction that worked for everybody. They worked with all stakeholders to ensure a smooth process throughout - It was so nice to speak to and meet people who were interested in me and my business, and most importantly just said it as it is.”
After running a successful coach business for many years, personal circumstances meant the client’s previous business had failed and was facing the challenge of building a new business back up again from scratch. Despite winning numerous new contracts based upon his contacts in the industry, the customer was unable to obtain the finance needed to acquire a new coach through traditional routes due to trading and credit history and a non-existent current balance sheet. The client was adamant he could make the business work and successfully replicate his previous business model that had generated material profits. He had the model, the contacts and the contracts he needed – but no coach!
The Davenham solution
The Davenham team was approached by a long-standing broker, assessed the various contracts and matched them to the new Scania Coach (cost £250,000) to ensure the cashflows worked, liaising with the client and broker throughout the entire funding process. We then secured the purchase of the coach and the connected contracts. A “chicken and egg” scenario, however by working together we achieved the desired outcome to benefit all involved.
The client now has the coach working hard on multiple contracts and is looking to further expand his fleet. Following the completion of the deal, he told us:
“Davenham were great, they understood what I was trying to do and with a mixture of financial commercialism and a full understanding of the asset concerned, we got a transaction that worked for everybody. They worked with all stakeholders to ensure a smooth process throughout - It was so nice to speak to and meet people who were interested in me and my business, and most importantly just said it as it is.”