SUFC: The Future SUFC up for sale

[ms brush]

Yes and the point of this particular DD is that they pretty much know they will find some nasties. It's knowing what the nasties are and what it's going to take to put them right that's the issue and reflects in the final price / deal.

A common sense answer! And a completely real world answer - its not going to be pretty untangling that lot, and would under normal circumstances take a very long time!

The last few days have been entertaining. Its like a bad soap opera, compelling yet ridiculous at the same time - watching the rumour mill gathering pace, growing legs and then racing off at top speed down Victora Avenue!

 

[kentblues]

Don't bet on it....I'd say it's highly accurate.

Again I am not ITK (something I’m increasingly grateful for). And I can only speak based on my personal experience and knowledge.

Acquisitions I have been involved with for businesses of around this size is in the £15-30k range. I don’t know what it’s costing here, but it would be going some to get to the number mentioned. Notwithstanding the FF piece will create additional complexity.

Generally there is a rule of thumb of up to 5% of the purchase price.

Anyhow take it or leave it. General information and not ITK for this specific case.

 

[Ron Manager]

I just want to get drunk on champagne celebrating the takeover. So if I have to wade through a few dozen posts each day to catch up with the latest progress towards that then so be it.

 

[in the know]

I'm in the know, I'm in the know,
I know everything that you don't know,

I know your wife gives biscuits to,
Her lover whom is more competent than you,

I know what your dog likes to eat,
Delicious chewy wolfy treats,

I know a lot about NDA's,
Especially the things I'm not allowed to say,

Things like, exclusivity is really fun,
Don't share this fact with anyone,

I'm an expert in corporate law that's me,
Cos I'm qualified by The Facebook University,

I'm ITK, I'm ITK,
It's always gonna stay that way,

And when you call bull****, you know what what I'll do?
I'll sulk and cry, then cuss you,

You don't deserve to know the truth,
Just rumours told with no burden of proof,

95% of what I say,
Is public knowledge anyway,

The remaining 5% is just a lucky guess,
But you fall for it none the less,

I'm in the know, I'm in the know,
I know everything you don't know.....

Never had a song written about me. Im flattered..thanks lol.

 

[Napster]

I just want to get drunk on champagne celebrating the takeover. So if I have to wade through a few dozen posts each day to catch up with the latest progress towards that then so be it.

You're 12 hours ahead, surely you've heard something?

 

[EastStandBlue]

No its still there on CP twitter feed in black and white for anyone who can be bother to read it.
Exclusivity granted to the Kimura group.

It was also retweeted by Matt slater on his feed.

So you have 2 respected journalist saying 3 days ago, that the Kimura group have exclusivity

I know who i believe.

Because nobody has ever misled or been economical with the truth with a journalist(s) to further a particular agenda before…

Let’s say, hypothetically speaking, you had several parties interested in an asset you were selling, but only one had come forward with a tangible offer. You know it’s in your best interest to attract more concrete offers to spark something of a bidding war, or simply to drive up the price of existing bids. You might - again, entirely hypothetically - leak information that causes other parties to get their **** together.

 

[londonblue]

£500k DD on a £4m turnover entity might be a tad wide of the mark..

Interesting take on it from a close friend of mine who happens to be a chartered accountant and up until very recently used to invest in failing businesses to turn around and sell on.

He was saying that when working in turnaround they didn't have time for full DD because they were under time pressure, so instead of engaging accountants he would do the DD from that angle, and they would employ lawyers for the legal side. They would budget around £50-80,000.

Even though SUFC are failing, this isn't a turnaround situation, and his view is that half a million is probably in the right ball park if they had time to do a full DD.

However, I don't think anyone has time for the full shebang, so I would expect it to be a lot higher than £50-80,000, but probably not as much as £500,000.

 

[Napster]

Interesting take on it from a close friend of mine who happens to be a chartered accountant and up until very recently used to invest in failing businesses to turn around and sell on.

He was saying that when working in turnaround they didn't have time for full DD because they were under time pressure, so instead of engaging accountants he would do the DD from that angle, and they would employ lawyers for the legal side. They would budget around £50-80,000.

Even though SUFC are failing, this isn't a turnaround situation, and his view is that half a million is probably in the right ball park if they had time to do a full DD.

However, I don't think anyone has time for the full shebang, so I would expect it to be a lot higher than £50-80,000, but probably not as much as £500,000.

So a Jeroen Boere rather than a Mike Marsh?

 

[EastStandBlue]

What if, hypothetically, one of the bidders assumed they had exclusivity but didn't?

If someone’s being duplicitous in the process, I know who my money would be on.

 

[Ron Manager]

You're 12 hours ahead, surely you've heard something?

Only 9 hours ahead currently.

But fair enough, I’ll keep an eye out and let everyone know as soon as I do

 

[londonblue]

So a Jeroen Boere rather than a Mike Marsh?

Looks that way.

 

[kentblues]

Because nobody has ever misled or been economical with the truth with a journalist(s) to further a particular agenda before…

Let’s say, hypothetically speaking, you had several parties interested in an asset you were selling, but only one had come forward with a tangible offer. You know it’s in your best interest to attract more concrete offers to spark something of a bidding war, or simply to drive up the price of existing bids. You might - again, entirely hypothetically - leak information that causes other parties to get their **** together.

Which is also why even those normally ITK and on the money are hearing different things.

My best conclusion is that there is a short exclusivity period to enable DD- I would expect that based on normal DD costs, if we take as broadly accurate the DD costs quoted then you can surely guarantee there is a period of exclusivity? These are businessmen, they’re not going to spend £500k on no more than Ron showing a bit of leg…?

I certainly don’t think you can believe on one hand DD cost at this level, and on the other exclusivity hasn’t been granted.

 

[kentblues]

Interesting take on it from a close friend of mine who happens to be a chartered accountant and up until very recently used to invest in failing businesses to turn around and sell on.

He was saying that when working in turnaround they didn't have time for full DD because they were under time pressure, so instead of engaging accountants he would do the DD from that angle, and they would employ lawyers for the legal side. They would budget around £50-80,000.

Even though SUFC are failing, this isn't a turnaround situation, and his view is that half a million is probably in the right ball park if they had time to do a full DD.

However, I don't think anyone has time for the full shebang, so I would expect it to be a lot higher than £50-80,000, but probably not as much as £500,000.

Interesting. I have been lucky it seems with acquisitions I have made over the years. I’m sure it depends on what you are buying. In my case normally software companies and equipment manufacturers in a sector I knew very well.

 

[yogi bear up the cagire]

I know nothing and can only try and interpret the posts on here in order to come to some estimation as to where we stand. Using a horse racing analogy, it's something like this. It's very, very foggy but It appears that Kimura Boy is the only horse in the field. There may be others but I can't define them, they may still be circling the parade ring. I can't see the starting line or even if the race is underway, although I'm assured by contacts in the grandstand that It is. One of the big problems is that the race official and course bookie Ron 'the hair' Martin are one of the same. Thus the length of the race, it's direction and the odds change erratically from one minute to the next. The favourite is clearly Kimura Boy but will he have the legs for the course? Will the race be abandoned due to the fog or worse, will the favourite have a fatal fall at the last hurdle?

 

[shrimperjon]

Thank God the Ashes start today. A chance to focus on a different sport for a while. Come on you Bazballers......

And the Essex Eagles T20 tonight, im off there and then Lords on Sunday.

 

[JB Shrimper]

I think Ron started worrying as soon as the word documentary was put into the public eye

 

[Paulie Walnuts]

From who? Can we please stop with this smoke and mirrors crap

When are you going to understand that people WILL NOT disclose who is giving them information due to the fact they won't get anymore if they start naming their sources in Shrimperzone.

You can take it with a pinch or salt or seriously, up to you but stop calling people out of you will end up with hearsay such as Steve Nash all day every day.

 

[Carl]

Interesting. I have been lucky it seems with acquisitions I have made over the years. I’m sure it depends on what you are buying. In my case normally software companies and equipment manufacturers in a sector I knew very well.

Did you use advisors that are in the Top 5?

That’ll likely explain why your entire DD cost is probably the cost of a cuppa there…

 

[Yorkshire Blue]

Again I am not ITK (something I’m increasingly grateful for). And I can only speak based on my personal experience and knowledge.

Acquisitions I have been involved with for businesses of around this size is in the £15-30k range. I don’t know what it’s costing here, but it would be going some to get to the number mentioned. Notwithstanding the FF piece will create additional complexity.

Generally there is a rule of thumb of up to 5% of the purchase price.

Anyhow take it or leave it. General information and not ITK for this specific case.

I think we’d be looking more in the region of a £20m deal with the stadium included. Now that’s not necessarily all going to Ron, the bulk of that may be going to the stadium build, but that still requires legal work. £30k isn’t going to get that done.

 

[Carl]

I think we’d be looking more in the region of a £20m deal with the stadium included. Now that’s not necessarily all going to Ron, the bulk of that may be going to the stadium build, but that still requires legal work. £30k isn’t going to get that done.

Brentford’s stadium was >£70m and inflation has bitten since. Not saying we can’t do it for less, but just throwing in a recent comparative