Education - case study
Independent Business Review of an EdTech company for a CBILS facility
- Annual income – c. £1.3m
- Number of employees – c. 25
Initially rejected by the Bank for an additional CBILS facility, the Company instructed an Independent Business Review to seek a professional assessment of the proposed lend and debt restructure.
Situation
The Company specialises in the provision of digital training, primarily Government funded apprenticeship education.
Following years of positive growth, COVID-19 demonstrably impacted the short-term delivery of new learner provision resulting in creditor pressure and a significant funding requirement.
The Company was over-leveraged and unable to service its debt without a substantial restructuring of its obligations.
Approach
Our IBR principally focused on the underlying business model, the short and medium-term forecasts and the Company’s ability to service current and future debt.
Working with the Company, we modelled the impact of alternative debt restructuring strategies and considered the prospects of a longer-term equity solution.
During the IBR process, we introduced the Company to alternative ABL providers to explore opportunities for reducing finance costs to a more serviceable level.
Impact
Our findings during the IBR resulted in the Bank reconsidering the Company’s CBILS application and granting an additional facility of £1.25m. Furthermore, a new finance provider was also secured on more favourable terms.
This restructuring package has secured the prospects of the business, eliminated creditor pressure, and allowed the Directors to focus on delivering growth in learner numbers.
The Company is confident of securing equity investment later in the year.
Client experience
“My experience with Mazars has been an absolute game-changer for my company in terms of the future funding for my business.
They were engaged to help with a CBILS application and took the approach of looking to secure improved working capital facilities for not just the CBILS application but an overall funding package for the business.
They introduced me to a new provider which has not only reduced our finance costs but put the business on a better funding structure for our future growth aspirations”.
Get in touch
If you would like to speak with a member of our Restructuring Team, please click the button below to submit an enquiry
National contacts