Business funding

[Bobby]

Hi All,

I took over the family business about one year ago.

It's been in operation for the past 40 years and has always made a healthy profit.

Although turnover is at an all time high we are forced to comply with some tough new legislation that will require heavy investment.

Our current location is extremely valuable but a new premises is essential for future business development. So its time to move on.

Initially I began searching for commercial sites but then 'opportunity came a knockin'. A competitor located outside Dublin who is fully compliant with the new legislation coupled with modern premises is willing to sell at the right price.

The only way I can afford to buy this other business would be to sell our own land - something that cannot be done for at least 2 years due to an ongoing will.

Ideally I would like to borrow €1m-€1.5m and then repay the sum (plus interest of course) from a commercial bank.

Could someone please advise me which commercial banks I should approach?

Kind Regards,
Bobby

 

[MOB]

".......something that cannot be done for at least 2 years due to an ongoing will. "

This seems odd. Can you elaborate?

 

[ajapale]

moved from Banking, Borrowing, Budgeting and Credit Cards
to Askaboutbusiness.

I suggest you engage the services of a chartered accountant who has good track record of dealing with family owned companies.

Do you have a business plan? What are your medium and long term objectives?

aj

 

[Graham_07]

I suggest you engage the services of a chartered accountant who has good track record of dealing with family owned companies.
aj

While not meaning to stray from the OP's question, it is not necessary to engage a chartered accountant. A professionally qualified accountant from ANY of the recognised accountancy bodies in Ireland [broken link removed]
should be well capable of handling this type of issue.

As the business has been going for many years and as the OP has taken it over ( not clear from the post is this a ltd company or an unlimited enterprise but may be ltd from what said ) is there not an existing accountant/auditor handling the business affairs who could, initially anyway, give guidance. Additionally, the existing bankers may be well placed, knowing the business, to offer a solution. It's often good to talk with the people who know the business first and that would help.

There are also issues regarding possible taxation on any sale of the existing assets which ought to be considered.

A long established, profitable business looking at expansion to settle its market place for the long term should be an attractive proposition for most banks. I'd get a business plan together and talk with the commercial lending managers of all the main names to see what they have to offer.