Case Story 01 – Mr & Mrs T, Office Equipment Suppliers
Some years ago and driving home from a client, Susan spotted a sign outside a supplier of office equipment. They were providing special deals on reconditioned faxes (remember them?!). Always loving a bargain, she popped in and got talking to Mr T, their sales manager. Deal done she continued back to the office and thought nothing more of it.
A few weeks later Mr T turned up at the offices of ABA (Arun Business Associates) and pronounced that he and his wife had decided to set up their own business. ABA quickly registered the partnership with HMRC and dealt with all the statutory requirements on their behalf.
They began trading from their garden shed (cliché but true) and soon moved on to small office and workshop. Within a short while they were employing four staff and had secured several large contracts. Another move was required. ABA quickly put together cash flow forecasts and projected accounts. The partners, with the assistance of ABA, prepared a comprehensive business plan and the bankers were approached for a Commercial Mortgage and a healthy overdraft facility.
In an amazingly short time substantial premises were found and refurbished to a high standard. They now had a shop front in a superior location, spacious offices mortgage repayments.
ABA continued to provide accounting and taxation services and Susan acted as part time ‘Financial Director’. The company continued to expand and went through many transitions, first becoming a Limited Company then a plc; it was listed on AIM (the London Stock Exchange’s international market for smaller growing companies. A wide range of businesses including early stage, venture capital backed as well as more established companies join AIM seeking access to growth capital), and eventually the business was sold to a well known listed Company.
Mr & Mrs T had progressed a long way from their garden shed and we were proud to have been there to help them along their journey.
Case Story 02 – Mr P, Hairdresser
In 2004 ABA were approached by a prospective client (Mr P) who had been offered the chance to purchase his employer’s hairdressing salon. Mr P was very enthusiastic to take advantage of this once in a lifetime opportunity. The salon owner named his price and we were appointed to act on behalf of Mr P.
The first thing that was clear to us was that as Mr P had been employed for several years, he was obviously a major part of the value of the business and we were therefore able to negotiate a substantial reduction in the asking price. We were also able to re-apply the allocation of the purchase price (goodwill, assets etc) in the most tax efficient manner. We then assisted Mr P with the statutory matters involved with a business start-up and provided him with a simple day to day bookkeeping system.
Mr P approached his current bankers regarding the financing of the acquisition but they were not helpful. Consequently we introduced him to our bankers, prepared profit and cash flow forecasts and the loan was approved on the spot. We then helped negotiate a new lease with his landlords and arranged for the sub-let of part of the premises that was not required for his business.
We have been acting for Mr P since that date and as well as quarterly management accounting, financial reports and self-assessment tax returns we advise him on sundry business matters as and when they arise. The business has gone from strength to strength and Mr P enjoys a much improved standard of living. This is just as well as a wife and baby are now part of the scenario.