BUSINESS TYPE:	VENDING FRANCHISE
LOCATION:	MIDLANDS
NEW CAPITAL:	£125,000

We were approached by an IIB consultant to help a Midlands based franchisor who was heavily overtrading and who had fallen-out with his business partner. The franchise had only been trading for a few months and was showing enormous potential, however it also had technical problems with the design of the vending machines; plus the franchisor's original business partner had problems of his own, that meant he could no longer supply development capital for the business. As a result the sales of new franchises had ceased, vending income was slow in starting-up and the company was in dire financial straights.

We were able to introduce a private investor who not only provided the necessary cash, but who also took a significant management role, to replace that of the former partner (who was bought out). The cash injection allowed the company to pay off its most urgent creditors, improve the product offering and, with the continued help of the IIB consultant, to restructure the rest of its debt, so that it could continue to expand at its former rate.

It took just under a month to introduce the investor to the company; it then took a further 8 weeks to sort-out the technical, ownership and creditor issues, before he was able to have confidence enough in the company's future to make the investment. During the whole process Beer & Young provided practical advice and valuable support to the company.

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