SUFC: The Future SUFC up for sale

[Yorkshire Blue]

Im off to Edgbaston to see us beat the cheating convicts. There are other Shrimpers going as well so if your in Brum give us a PM.

Did you bump into Barney Ronay

https://twitter.com/x/status/1669591360041517056

 

[JWShrimper]

I can understand the frustration, this seems to be dragging from where we thought we were a couple of weeks ago (It’s important to remember that we’re all Shrimpers, wanting the best for the club, which’s something great, that we have in common). In reality, I’d imagine a minority among us have ever been involved in the buyout and takeover of a professional football club but the idea that another buyer could swoop in, is one that concerns me, more than anything. We’re months into the process, to seemingly be at an advanced stage with Kimura and being ‘95% done’, surely there’s no time for that process to almost start again, with all the DD and checks to be carried out, prior to deadlines set by the National League and the adjourned winding up order?

 

[kentblues]

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…

If we were buying a £2m turnover software company no I don't think we picked up the phone to Goldman Sachs....Geography of course comes into it, industry/nature of business, local regulatory environment, a bigger acquisition might attract interest from competition authorities and that could accelerate costs and cause significant delay. But we are talking about small UK based companies trading solely/primarily in the UK.

Also most acquiring companies of a reasonable size have their own in-house legal and audit/accounting function. This can take a varying amount of the strain, all be it if you are looking to move very quickly, and don't have the in-house resources to match, then external costs again accelerate.

Years ago i worked for one of the top 4 accountants as they were then. You paid more for the privilege rather than for a better result. Even had companies who insisted on being audited by the London office so that was the office stated on the accounts. Off we went, staying in hotels, eating at reasonable restaurants, travel costs...

Of course buying from Ron may be an entirely different kettle of fish, might be regarded as a high risk transaction and as a result no stone left unturned, and then you have the falling down stadium and FF. I was merely expressing surprise based an my experience...not claiming to be right or ITK.

 

[kentblues]

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.

Agree, I did say notwithstanding the FF piece (and the state of RH for that matter). Anyway. Done it to death now I guess. And I 'm sure dealing with Ron boosts costs considerably..

 

[hlane17]

Just need to get it done now. Fed up of reading false dawns in the media and rumours surrounding our better players.

 

[Alexshrimper]

A couple of observations on my part

1) two times we have gone from euphoria on a Friday to dismay as it hasn’t happened - largely led by an instagram update by one of the people involved in the takeover.

2) A guy on Twitter called Wolfy appears that has now become a celebrity and his word is being taken as gospel but no one can quantify his involvement. From memory tweets from Wolfy have also led to storing excitement amongst the fan base to then tweet things are a million miles away. Something doesn’t add up.

I suppose what we need to do is get the the supports groups together again to ask someone somewhere WTF is going on so expectations can be managed

 

[Liam AAS]

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.

I have a bottle of barrel-aged stout in the fridge for this exact moment

 

[Liam AAS]

It is worth noting that, not only can their progress not be quantified, but nobody has even identified this/these additional bidder(s).

There is neither hide nor hair of them anywhere. 2 very experienced and professional journalists who have local and national contact books longer than 10 arms have turned up nothing. It is well within the realms of possibiliry that they dont exist and this is just Ron being a ****.

 

[Holy Joe]

Would you commit to buying a house at an agreed price then get full costly surveys and solicitors/legal work done if the owner was till open to bids from others?

Kimura would be mad to spend 500k on the DD not knowing where they actually stand atm.

But that's exactly what a house purchase is - you're not exclusive until you've exchanged contracts, that is after you've spent money on legal fees, searches etc. Agreeing the price means nothing, in terms of exclusivity, for a house purchase

 

[Holy Joe]

It is worth noting that, not only can their progress not be quantified, but nobody has even identified this/these additional bidder(s).

There is neither hide nor hair of them anywhere. 2 very experienced and professional journalists who have local and national contact books longer than 10 arms have turned up nothing. It is well within the realms of possibiliry that they dont exist and this is just Ron being a ****.

Have they turned up nothing or just not published. A journalist won't necessarily publish everything they know.

 

[kentblues]

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.

Just gone back to my original post ..you begin to doubt what you said. The 5% of purchase price* is about right for a business but the range should read £150-300k not £15-30k!!!...

*BTW I don't like the purchase price rule of thumb. You could buy a £100m turnover loss making business for £1 and the costs wont be 5 pence. But a normal £4m turnover business with say 10% EBIT might sell for say £3m. Acquisition costs £150k. In my defence its nearly 10 years ago that I left the relevant business.

And we never bought from anyone like Ron!!

 

[Liam AAS]

Have they turned up nothing or just not published. A journalist won't necessarily publish everything they know.

I don't speak to MS every day but, to my knowledge, he has had no evidence of any other bidder. I think his tweet quoted on this very thread backs that up.

 

[Portuguese Shrimper]

Is there anyone on the Zone who knows exactly what Kimura are actually trying to buy?
Club plus chance of buying stadium?
Club, Stadium plus Roots Hall?
Club, Stadium, Roots Hall plus Fossets Farm development? (Whole shooting match)

Sorry if this is covered elsewhere but I haven’t seen it!!

 

[GBJ]

I don't speak to MS every day but, to my knowledge, he has had no evidence of any other bidder. I think his tweet quoted on this very thread backs that up.

An absence of evidence isn’t an evidence of absence though.

Just to play devils avocado and put another spin on it, what if Ron does have a secret second bidder - something he/the club actually claimed a few weeks ago - and he’s using/playing Kimura to boost his returns from the initial (potential) buyer?

I don’t know, I’m just speculating.

 

[Liam AAS]

Is there anyone on the Zone who knows exactly what Kimura are actually trying to buy?
Club plus chance of buying stadium?
Club, Stadium plus Roots Hall?
Club, Stadium, Roots Hall plus Fossets Farm development? (Whole shooting match)

Sorry if this is covered elsewhere but I haven’t seen it!!

No, everything is conjecture. The only people that know are involved in the deal.

What is most LIKELY is that they are buying everything except RH.

 

[Petejames]

No, everything is conjecture. The only people that know are involved in the deal.

What is most LIKELY is that they are buying everything except RH.

Mmmmm or maybe RH aswell but what do I know

 

[Yorkshire Blue]

It is worth noting that, not only can their progress not be quantified, but nobody has even identified this/these additional bidder(s).

There is neither hide nor hair of them anywhere. 2 very experienced and professional journalists who have local and national contact books longer than 10 arms have turned up nothing. It is well within the realms of possibiliry that they dont exist and this is just Ron being a ****.

It’s not really that surprising. Chris Phillips is a local football journalist not a business journalist. We also know they were looking to the US. Matt Slater may have wider contacts but is now aligned with Kimura, which may make rival bids wary of speaking with him.

Plenty of businesses don’t like their business being splattered in the media. If there are multiple interested parties there’s a reasonable chance they won’t be successful and they don’t want to be identified with a failed bid, particularly if they are still in the market for a club. This is less of an issue for Kimura who presumably wouldn’t be interested in a non-local club.

Just gone back to my original post ..you begin to doubt what you said. The 5% of purchase price* is about right for a business but the range should read £150-300k not £15-30k!!!...

*BTW I don't like the purchase price rule of thumb. You could by a £100m turnover loss making business for £1 and the costs wont be 5 pence. But a normal £4m turnover business with say 10% EBIT might sell for say £3m. Acquisition costs £150k. In my defence its nearly 10 years ago that I left the relevant business.

And we never bought from anyone like Ron!!

Ok, £150k-300k seems a bit more like it. £30k seemed ridiculously cheap.

 

[Massimo Giovanni]

But that's exactly what a house purchase is - you're not exclusive until you've exchanged contracts, that is after you've spent money on legal fees, searches etc. Agreeing the price means nothing, in terms of exclusivity, for a house purchase

The fixtures and fittings list must be interesting?
Will it include light bulbs?

 

[Rayleigh boy]

It is worth noting that, not only can their progress not be quantified, but nobody has even identified this/these additional bidder(s).

There is neither hide nor hair of them anywhere. 2 very experienced and professional journalists who have local and national contact books longer than 10 arms have turned up nothing. It is well within the realms of possibiliry that they dont exist and this is just Ron being a ****.

a very naive view of journalists :-)

most of them just spew up what they have been fed ..

(Chris Philips is decent )

 

[Leeboy]

The fixtures and fittings list must be interesting?
Will it include light bulbs?

those mushrooms must be worth a few quid, especially if they're of the magic variety