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Posts posted by FIGGY

  1. 14 hours ago, spyguy said:

    Well ... the eye brow raising bit is that we are 10 years in from 2007.

    It would imply that here has been fux allof  fux all paid off the mortgage.

    And there's limited equity/HPI too.

    Youd expect  ~50% to be paid off after 10/15 years into a mortgage

    I'm not sure you would, interest makes up most of the payments in the first half of the mortgages life

  2. 1 hour ago, Noallegiance said:

    So..... The measured 'inflation' could be incorrectly low as retailers aren't passing on the full rises?????

    Scratchy chin.

    I've had a mixed bag. Sainsbury's took a massive chunk of extra margin when we put prices up earlier in the year, Tesco and the others held it (tesco was a big battle to get it through) could just be our buyers but in years gone by they would always have passed it on and normally taken a bit extra for themselves 

  3. It bizarre that the writer states a crash will be averted as pent up FTBs will buy in as soon as they can afford it, but that misses the most simple of economic principles, that people will hold off buying waiting for it to get cheap if prices fall

  4. 2 hours ago, Morganite said:

    It won't work because you're not considering like for like.

    Chicken today isn't the same as chicken in the past.

    Chicken in the past had a much higher protein content as a proportion of the calories contained in it.

    Today's turbo grown chicken is very high in fat and quite low in protein.

    Hell get a chicken leg and chop through the bones. You'll see the marrow is still red rather than grey or brown like chicken were like in the 60s and 70s. It demonstrates that chicken growth is massively accelerated.

    Think its same to say the same can be said for housing. Just compare the size and quality of a new build to a 1940s place

  5. Thanks Bubbles,

    I think they will want me to run it separately for a while and then see which bits overlap, who has the strongest teams etc then start to consolidate to get the savings (100 day plan still to be drawn up, but as you say min 6 months of not changing the fundamentals seems sensible). Saw our solicitors to look over the contract, the non compete is very very very heavy so I have quite a lot of work to do on that part otherwise I could find I'm locked out of working in any associated area for many years and have to use my capital to feed myself, I feel I need to look at the non compete alongside the employment contract an tie in period etc not in isolation which is how its currently being viewed.

  6. 10 hours ago, Foreverblowingbubbles said:

    Just to respond to your thoughts/questions on inflation, obviously it's impossible to predict the future with any certainty....

    Thank you, if the shares were publicly traded then I would probably agree, but I would have a very very small share of the acquiring company which makes it even harder to sell. They also have a very aggressive expansion plan so I would be open to heavy dilution. I'm also very risk adverse and feel they may make it big but could also crash an burn - just may opinion and I don't often get these things right in my personal investments....

  7. On 1/18/2017 at 11:15 AM, Foreverblowingbubbles said:

    Hiya figgy.



    Thanks you for that, is so hard to find people willing to talk about their experience and the people I know in the industry that have sold have either done so for a lot more and have been set for life or have "sold" as part of a private administration and have really just offloaded debt and any personal guarantees.

    We have steadily grown our business but mainly in turnover, although I do have a good directors package £130k+ PAYE equivalent so that cant be underestimated. I know that to move the business forward it will require a huge commitment from me over the next 5y and I'm not sure if I have it in me, its also not the type of business that is very easy to sell (I cant say the type as there are so few it will be easy for someone to find out who it is). A trade sales is really the only way and with a very very limited market.

    I have a real love/hate relationship with my current business, I do love the people and what we have built but hate the grind of HR issues, constant chasing my tail and general worry.

    Investment wise I do have to remind myself £400k is a lot of money (easy to overlook when you talk about houses prices but vs most other things its a lot). The deal is 100% cash almost all up front with a very small true up figure, I also know that there are quit e a few business that would like me to work for them and I could probably get an equity stake in them as part of any future package. In the end I guess I have no idea if I will like working for someone else unless I do it.

  8. Thanks all, still need to negotiate the tie in period but they are very keen to have me in over the long term,  I on the other hand am hoping I can keep it short.  2y max

    As far is industry,  its not ideally placed in a downturn but it has a twist and during 2007 we did well so I don't think that side of things has a big influence. 

    My fellow shareholder is a lot older so he would be quite keen to crystallise the value in the business as he moves closer to retirement. 


  9. Just a  couple of thoughts in two veins really:

    I’ve had a very fair offer for my business of which I’m one of two shareholders of which I have a significant but minority stake. The deal which is currently in DD but a long way forward will probably go ahead and would give me £400k post tax & a well remunerated job afterwards (unless/until they decide my face doesn’t fit in new co). Has anyone on here sold before for a similarly small amount i.e. not life changing £2m+, what did they think, did they enjoy going back to work for someone etc (I’m under 40 so have a  decent chunk of my working life ahead of me).

    As we enter what is looking like an inflationary period and a majorly devalued £, would other people be reassessing what getting a chink of cash in means or are there always opportunities for capital growth in either environment i.e inflation (should) drive rates and therefore savings returns. Are there any big things people would suggest I consider?

    It’s been difficult enough making the decision to sell and now the market uncertainty is making my head spin

  10. It's generally ignored but suppliers don't want really retailers to pay up front. Can't be arsed with a massive exposition on the ins and outs but, there certainly is a cost to both parties processing more invoices and deliveries. It makes sense to have the same terms across as much of the supply base as possible.

    The main distortion, of which the public have no understanding when bill payment is discussed in the media, is invoice discounting/factoring. Where a supplier has such an agreement in place it is likely they can get immediate funds as soon as they generate the invoice. This means that if they urgently need money to pay wages they have just got to get an agreed order and they can get funds for a large percentage of the order value.

    Even if a customer is paying pro-forma (up-front) prior to delivery of goods it might take them a couple of days to process the payment, or they will delay until their warehouse is in a position to accept the delivery, but the supplier needs the money immediately.

    In an e-commerce world though the case for supplier credit is a lot more thin.

    if you can find someone who will factor 100% of debt for a sensible cost if at all I'll give you a prize. Generally its 80% at most. Also there isn't one business I know who wouldn't rip your arm off for upfront payment. I've never had an FD tell me the terms with retailer x are too short!

  11. If they were on 30 days they had been doing well really.

    I love this kind of reply. I've had the begging letter from morrisions and it was treated in the way they always are by me, which is telling them to go jump. 30 days are good terms but the Joint Business Plans in place with a retailer are built on the FULL trading terms. I've said we will happily move to 60 days if we can re negotiate our JBP to compensate I.e. its cost neutral.

    Do also note that one of the reasons that Morrisons need to offer factoring as because is probably going to get a lot more expensive to factor their debt as their credit rating gets worse.

    Final point is that all retailers up up to this sort of thing. Waitrose were very lazy and sent a demand to all supplier for a x% discount but I just ignored it.

  12. As a small business owner its a worry among all the other regulatory worries. I seem to spend too much time talking to our solicitors to avoid being taken to court by our employees on redundancy, restructures etc This is just another things that our employees can use against the small employer and I can see the "my flexible working was rejected due to sex/age/race discrimination" card being played at some point

  13. As a small business owner its a worry amounts all the other regulatory worries. I seem to spend too much time talking to our solicitors to avoid being taken to court by our employees on redundancy, restructures etc This is just another things that our employees can use against the small employer and I can see the "my flexible working was rejected due to sex/age/race discrimination" card being played at some point

  14. Just another reason not to accept exchange and completion on the same day, if you do they have you over a barrel. I always leave at least 3 weeks to a month between exchange and completion, once exchanged I will start booking removals, notifying utilities.

    That's a really bad idea as you are committed to the purchase but the mortgage company can pull out for any reason between exchange and completion. Don't forget its you who is committing to the purchase not the mortgage company. If it's a cash purchase the its not an issue

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