整理版本final

Cow’s London Udderlie’s Situation：

Both well educated and employable Financially stable

Want flexibility in their investment Claim to have an entrepreneurial spirit

Udderlie’s Requests：

Need help preparing for a meeting to receive financing from Confederation Bank Requested

Evaluation of overall idea

Preparation of the Pro Forma Statements Ideas for Collateral

Identify potential issues bank may have

Initial Recommendation：

Want to maintain current work/family balance

Franchise may not provide independence or creative outlet Viewing as investment, not as a business venture

Bank’s Required Information：

Looking for concrete information

Need to be assured they can invest in you Want pro forma financial statements Prove you will be able to pay them back

Research Conducted by the Udderlies：

Done extensive market research, James has a background in the field and can analyze market research properly

Target market of employed individuals, recognizing high price point Franchiser Information Franchiser has well developed store design standards and specifications Franchiser offers a lot of support and provides costs Great location

meets high quality target market segment and is a high traffic area

Numerical Analysis for Bank：

Aggressive debt repayment plan: Debt to Equity

1995-1996 Fiscal = 1.02

1996-1997 Fiscal = 2.38 * large loss in first year reduced equity by over 50% ROI

Fiscal year 1996-1997 = 17.5% Growth

Sales increased $278,586 or 69% in one year Calculation of Forecasts

Sales forecasts based on information from franchisor and seasonality:

Many costs are variable and dependent on amount of sales Help with seasonality of business No tax expense in first operating year Loss carry forward for the next year

Several items are required by the franchiser

Collateral Options:

$160,000 of Equipment

$50,000 of Merchandise Inventory

Potential Bank Terms:

Maximum Debt-to-Equity Minimum Cash Balance

Floating Rates on Loans due to hostility in the market

Summary:

Timing of the deal is critical, to line up franchisor and landlord

Financing is required during off seasons in early years of the company New government small business grants/loans are a great opportunity Bank is looking to make relationships

Final Thoughts:

Main issue that the Cow’s Franchise may not be the best investment for the Udderlies

Do not desire to invest a lot of time, already seeking to hire a full time investment manager Do not have creative control Steady return will take a few years Many other investing options available

本文来源：https://www.bwwdw.com/article/2ytv.html