Case Study: Staging & Events Company
The client need
The Director of a well established staging and event company had won the contract to co-ordinate a new bespoke stage at one of the UK’s biggest music festivals, and needed the funds to build something revolutionary. The high street banks didn’t want to get their hands (or wellington boots) dirty, and just didn’t look at the business or its security. As a result, Davenham was asked to raise finance on staging, but this was no ordinary staging - these were world leading structures sought after by the top production companies.
The Davenham solution
The Davenham team took the time to learn about the staging, their connected assets and the related engineering requirements, and could see that our client’s designs had incorporated load bearing capabilities and other options which meant they were far superior to other options on the market.
What was key for Davenham was to assess the value of the various stages and their components, and understand that many of the client’s previous stages had been built specifically for annual events, so came with an ongoing contractual commitment to hire, highlighting future committed cash-flows. We needed to understand the flexibility of the equipment as it has all been designed as modular to be used in a number of ways to create different structures, similar to a Meccano kit. Detailed discussions and research conducted by Davenham’s valuers confirmed there was material value in the staging and that there would be demand in the market if it ever needed to be sold. A full understanding of the complex erection processes then had to be confirmed, which was done through access to the detailed engineering drawings and the on-the-ground practical experience of our asset logistics specialist, who had seen the client’s previous staging being erected and taken down on numerous occasions and therefore had detailed hands-on knowledge.
Davenham now found itself understanding it had an asset with significant value and access to the engineering drawings (which in themselves represented a significant piece of intellectual property) and a company and management team we believed in. We collectively discussed the risks they were taking and how they would plan for any exit should the need arise, and as a result the perfect security package was brought together through careful structuring and legal documentation through a bespoke refinance package.
Our client commented: “It has been absolutely refreshing to work with an alternative finance provider who literally rolled their sleeves up and took the time to understand our business. Asset finance has proved to be extremely successful for our staging and temporary structure business, and we are now continuing to work with Paul and his team on the growth of our company.”
You can read more about this case study on the NACFB website here.
The Director of a well established staging and event company had won the contract to co-ordinate a new bespoke stage at one of the UK’s biggest music festivals, and needed the funds to build something revolutionary. The high street banks didn’t want to get their hands (or wellington boots) dirty, and just didn’t look at the business or its security. As a result, Davenham was asked to raise finance on staging, but this was no ordinary staging - these were world leading structures sought after by the top production companies.
The Davenham solution
The Davenham team took the time to learn about the staging, their connected assets and the related engineering requirements, and could see that our client’s designs had incorporated load bearing capabilities and other options which meant they were far superior to other options on the market.
What was key for Davenham was to assess the value of the various stages and their components, and understand that many of the client’s previous stages had been built specifically for annual events, so came with an ongoing contractual commitment to hire, highlighting future committed cash-flows. We needed to understand the flexibility of the equipment as it has all been designed as modular to be used in a number of ways to create different structures, similar to a Meccano kit. Detailed discussions and research conducted by Davenham’s valuers confirmed there was material value in the staging and that there would be demand in the market if it ever needed to be sold. A full understanding of the complex erection processes then had to be confirmed, which was done through access to the detailed engineering drawings and the on-the-ground practical experience of our asset logistics specialist, who had seen the client’s previous staging being erected and taken down on numerous occasions and therefore had detailed hands-on knowledge.
Davenham now found itself understanding it had an asset with significant value and access to the engineering drawings (which in themselves represented a significant piece of intellectual property) and a company and management team we believed in. We collectively discussed the risks they were taking and how they would plan for any exit should the need arise, and as a result the perfect security package was brought together through careful structuring and legal documentation through a bespoke refinance package.
Our client commented: “It has been absolutely refreshing to work with an alternative finance provider who literally rolled their sleeves up and took the time to understand our business. Asset finance has proved to be extremely successful for our staging and temporary structure business, and we are now continuing to work with Paul and his team on the growth of our company.”
You can read more about this case study on the NACFB website here.