Due Torri

Presentation of the company

Taken over in 2013, Due Torri (Le Petit Capucci) is active in the restaurant sector. The company, managed by Abouth Yohann, has 7 employees and is based in Paris.

Le petit Cappucci offers mainly Italian cuisine and is open from Monday to Saturday from 12pm to 4pm.

With a privileged location in Paris, close to department stores, numerous shops and in a business area, the restaurant enjoys good visibility and a large flow of pedestrians. The establishment serves an average of 250 people per day for an average ticket of 13 €.

Target:

Created in 2011, La Carte Joubert (La Carte) is active the fast food and catering. The company managed by Benjamin Mach has 5 employees and is based in Paris. It is a neighbour at Le Petit Capucci. It is open from Monday to Friday from 11am to 4pm and offers a cold cuisine based on salad and sandwiches for an average ticket of 8€. The establishment also benefits from a good location as its neighbour Le Petit Capucci.

Project Description

Mr. Mach wants to sell his activity valued 350 000 €, valuation based on standard of the market. Mr. Abouth via a his company DUE TORRI wish to borrow 493 000 € over 60 months to finance the acquisition and renovation work of the underlying business company. This project will be realised in the next few months.

This project is a Flexible Bridge Loan, an amortizable loan with a standard commitment for the first 9 months and the possibility of early repayment at no cost for the remainder of the loan term, even in the event of refinancing by other financial institutions.

This project is a medium-term loan with a capital amortisation deferment and as such presents a different method of capital repayment than standard projects. The first 4 months, the lenders will only receive interest; the following 56 months, the lenders will receive interest and principal amortization. This principal repayment profile matches the borrower’s financing needs while allowing lenders to earn a higher amount of interest.

The amount offered on the platform is limited to 241 570€, which is in line with the regulatory limits.

Analyst’s Opinion

The financial analysis has been made on the borrower and the company to be acquired.

With a combined turnover of 941 200 € in 2018 and an experienced team, the company has a good track record combined with a two-digits operating margin.

In 2018, the target’s turnover is 309 000 €.

The forecast is based on the historical performance by integrating business being acquired.

The borrower has a good repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,28 and a strong financial structure, with a forecast net debt / ebitda ratio of 1,05 and a net debt / shareholder equity of 180% taking into account shareolder’s loan as equity .

The analysis of the project leads to a credit rating of B and a 6,45% annual interest rate.

*The multiple of FCCR at 1,28 means that the company has a safety margin of 28% relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (External data provider). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.

Strong points:

• Good historical performance based on diversified client base.
• Good repayment ability with a forecasted FCCR of 1,28.
• Experienced buyer.

Points of caution:

• Project risk.
• Strong competition.