Building firm reaches new heights - with help from M3

When building management company Elevations Ltd found it had insufficient cash flow to support rapid expansion, it turned to M3 Corporate Finance for help. The company needed to raise working capital to support its cash flow but had no tangible business assets available.

It wanted to raise 250,000 of new money, in addition to a 100,000 existing overdraft, and had spoken to its bank and a number of factoring houses? all to no avail due to the nature of the contract work they undertake. Several private equity deals had been lined up but these would have diluted the business by 16%.

M3's solution was to present a business plan against a strict remit where personal security was not on offer. Following negotiations, a sum of 200,000 was agreed against an unsupported guarantee. We also persuaded a factoring house to agree to advance 65% of all debtors and a payroll line of 50,000 was introduced.

M3's intervention has resulted in a number of additional benefits for the client. The firm's equity has remained intact and it now enjoys a proactive and positive relationship with its new bank. The additional credit lines offer greater overall flexibility and spread the risk more evenly across suppliers.

David Hebblethwaite, Managing Director of Elevations, said: "I spent several months having discussions with numerous banks, finance specialists, venture capitalists and other so-called agents for business funding."

"M3 were the only people who quickly came up with contacts who provided suitable funding within a sensible time frame. I would have no hesitation in recommending M3 for alternative, innovative as well as traditional sources of funding."

M3 Director Mark Crossfield said: "We wish Elevations every success with its future expansion plans and look forward to helping other small and medium-sized businesses in the South West secure the growth capital they need to develop and succeed."

 

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