Entries by petewild

DSCR what it is and why it matters

DSCR is the Debt Service Cover Ratio required by bankers… typically when they are ‘cash’ lending for an MBO, acquisition etc They want to make sure a company’s annual Cash Flow can cover its annual Debt repayments… and they add a little bit on for comfort So… let’s play numbers If a company has £100k Debt […]

MBO … you know it makes sense

I’m seeing an increasing appetite among bankers to fund an MBO… which is a great thing all round. Owners get to sell all or part of their holdings and realise value… to people who know the company well and are seriously committed to making sure it survives and thrives Bankers get to fund a team […]

R&D tax reliefs and grants work … will Patent Box work better?

Innovation is one of the best drivers of growth for an owner managed business… and luckily the Government really does get it… offering some bonkersly brilliant and accessible help that actually works for companies like yours… As a form of Corporate Welfare (which I’m generally against) these innovation-orientated tax breaks and grants rather surprisingly do what […]

Selling Shares or Assets ? … it matters

I’m currently helping someone sell their business to a huuuuge perfect-fit buyer who popped up out of the blue with a great life-changing offer… BUT … and there has to be one… … the buyer doesn’t want the company… they just want to buy selected assets… OOOPS Below I go into the pros & cons of selling […]

Finance further up the food chain…

I like to think this blog is for scale-up owner managed businesses… so here’s a few aspects of finance further up the food chain that may be useful to know as your capital requirements change as you grow… And since I like to give a few ‘insights & angles’ I’d rather not list all the […]

Audit… hear, hear

I never liked auditing… but I like audits Way I see it there are only two reasons not to have an one… cost & hassle… but here’s a few thoughts on why having an audit can be a good thing Credit Ratings… … the agencies love audits… it means a pro has checked your systems […]

Asset Lives… they matter

How long you plan to use an asset affects the Depreciation going through your accounts… which means asset lives matter to your Profits and your Balance Sheet. Assets are depreciated over the period you expect to use them… If you expect to use a £100,000 asset for 4 years… this year’s Depreciation could be £25,000 […]

Residual Value… there’s real value in there

Accounting rules mean your profits get hit by Depreciation… but you don’t have to take that lying down. Ask your accountant how they handle the Residual Value of your assets… it could boost your Profits… tax free. Residual Value… definitions Your company’s depreciation policy is “the systematic allocation of the depreciable amount of an asset over […]