tinkertaylor
Free Member
- May 11, 2022
- 308
- 693
- Funster No
- 88,626
- MH
- Peugeot boxer
- Exp
- Started self build December 2020, finished April 2022
Those costs haven't raisedYes but my point is , it's only the interest on the money that's gone up, not the repayment or staff costs or all manner of things , the half a percent extra on the interest is only say a tenth of the whole costs so a tenth of half a percent on the whole expenditure.
Sounds challenging, try and get some enjoyment out of it, it's often the journey rather than the destination that makes things special. Good luckIt’s not just the interest rates. It’s the fact that we now see that the current owner appears to have deliberately misled us on the forecasts for this season. A reason I insisted we were able to stay onsite through the season and put a few caveats in the ‘compromis’ was to confirm that the income was as claimed. It isn’t. Last year was extreme due to the post pandemic effect and this season is, while not quite a disaster, about 50% down.
This place requires about €3m of capital to turn round. as stated it is roughly half in purchase cost, half in required investment. Everything and I do mean everything requires replacing. Without investment it will continue to wither and will die. We planned to put in capital 1/3 of that. That’s €2m of debt to service. Plan A was to ‘partner’ (their term) the banks for the second €1.5m over 5 years.
By far the most important was current turnover. Without sufficient turnover, income, there’s no viable business to begin with, it’s too much of a challenge.
The reduction in income or CA changes the value of the FdC. Hence there is now a need to achieve a corresponding reduction in the price. We will be seeking a 33% reduction in the price for the business (no change in the value of the ‘walls’). It won’t be easy and there is likely to be some tears and emotion from the vendor and especially some anger from his wife when we present the facts face to face.
We will achieve the result, or we will walk, it’s that simple. Neither Bea nor I can guess how it will go.