What We Do and FAQs

What happens when I contact you?

You will be put through to one of our experienced team and we will initially ask you to engage in an informal, but confidential discussion over the telephone. This will give us the chance to understand your proposition and its requirements, appraise the project and provide you with some immediate feedback. At the end of this initial conversation, if both sides agree, we will suggest a follow up face to face meeting.

What do you need to know?

Depending on your requirements, some of the following questions may be raised during our discussion. Please treat this as a guideline only, as we may not need all the information at this stage.

• An outline of the business proposition, the income streams and costs, funding requirements and timeline to deliver positive cashflows and profitability.
• Who will be the major contributors to the success of the proposition?
• How far has the proposition progressed to date?
• Who is the owner/driver of the project?
• Do you have a business plan?
• Do you have financial projections?
• Do you have timescales and what if any are key decision points?
• Do you know the levels of finance required and is there any flexibility?
• If wishing to make an acquisition, who will be appointing an intermediary?
• Are there any assets that can be used for security?

I want to buy a business, what can you do for me?

We would work with you to help deliver a successful conclusion of the project. We can work to support your existing advisors or completely manage the project for you. Our specialist team at M3 Corporate Finance and our close associates has the expertise to provide you with any or all of the following, ensuring a successful transaction:

• Make a 'no names' approach on your behalf to the target business.
• Assistance with deal structure and negotiations with the vendor and their advisors leading to agreed heads of terms.
• Full or partial project management.
• Review and analysis of target company financials.
• Work with management to determine an appropriate project plan and timeline and assume responsibility for maintaining this plan and coordinating the deliverables from M3CF, other professional advisors and financiers.
• Review/preparation of a financial model allowing easy manipulation of various business inputs and clearly show the results in terms of cash flow and profitability.
• Support in the preparation of the Business Plan to ensure maximisation of opportunity.
• Insure that the business plan answers the anticipated questions which funding sources are likely to ask.
• Establish a ‘short’ list of potential funders after considering the criteria.
• Take responsibility of insuring that the investment proposition is communicated to prospective lenders.
• Support with the presentation of the business Plan to potential funders.
• Guide the management team through the take-up process, where necessary.
• Prepare business plans suited to the needs of the lenders.
• Support with legal and tax issues.
• Competitor analysis.
• Due diligence and valuations.

What are your fees?

Finding funds for client projects is just one aspect of our business. M3 also provide comprehensive professional corporate financial services dealing with all aspects of corporate finances.

Much of the work we carry out is on a success fee basis. In other words, you only pay on completion of a successful transaction. All fees are negotiated and agreed in advance, so there are no hidden costs or surprises. You will find our rates highly competitive and offer excellent value.

When you make an enquiry we will be able to give you some idea of the costs involved in executing your project, including professional fees.

What happens if my proposal fails?

In the unlikely event that we cannot achieve a successful transaction, success fees would not be payable.

What types of funding are available?

There are four principle types of funding and loans can be structured utilising any or all of them in order to provide the right repayment profile.

Debt funding - Secured against assets such as stock, property etc.

Term loan - Used to cover cash flow, usually made against future income streams and where a company can demonstrate a net profit in excess of £400,000.

Equity funding - The lender takes a share of the company .

Commercial mortgage - Secured against property and usually for a 15 year term.

Why do clients use M3 Corporate Finance?

Our commitment to being truly independent provides our clients with many advantages, especially where raising finance is concerned. We are free to look at all the lenders in the market and provide our clients with a short list of the best options.

We have a cash flow problem, can you help?

If you are looking to raise finance due to a short term problem then we will be able to make a quick appraisal and secure the necessary funds. However, if the problem is likely to be more long term, we would suggest a more in-depth review of your operations. In these circumstances we construct various business models which show how the business would be affected by implementing any changes.

Our experienced team are ideally placed to advise and secure funding required.

How long does it take to raise finance?

Many transactions can be completed in less than 4 weeks. The more complex issues involved in the purchase of a company may require a 4 to 8 week period. M3CF will stay with the project until completion.

What can you do that my Bank can't?

Banks generally only provide funding and only recommend their own products. They are specialists in their particular field of funding, but they will likely not have the breadth of experience we have in out team at M3CF.

We provide all the tools and services you need to complete a successful transaction. We do not sell product. We provide independent professional help and resources that ensure our clients get the very best out of every project or transaction.

I want to buy the company I work for, how do I go about it?

Buying the company you work for is a unique and exciting opportunity, but first an approach has to be made. If the owner is unaware of your interest then we can make an anonymous approach on your behalf to test the market. We have achieved a very high rate of success opening talks in this manner. A price for the business then needs to be negotiated and terms need to be agreed. Then it’s a matter of raising finance if required and executing the deal.

Here are some of the key issues that will need to be addressed when buying a company:

• Make an approach to the target business.  This can be done on a 'no names' basis on your behalf.
• Deal structure and negotiations with the vendor and their advisors leading to agreed heads of terms.
• Project management and an appropriate project plan and timeline and responsibility for maintaining this plan and coordinating the deliverables from professional advisors and financiers.
• Review and analysis of target company financials.
• Preparation of a financial model allowing easy manipulation of various business inputs and clearly show the results in terms of cash flow and profitability.
• Support in the preparation of the Business Plan to ensure maximisation of opportunity.
• Insure that the business plan answers the anticipated questions which funding sources are likely to ask.
• Establish a ‘short’ list of potential funders after considering the criteria.
• Take responsibility of insuring that the investment proposition is communicated to prospective lenders.
• Presentation of the business plan to potential funders.
• Support with legal and tax issues.
• Competitor analysis.
• Due diligence and valuations.

M3 have extensive experience in conducting transactions of this type and have helped many buyout teams achieve their goals.