Les Délices de Maeva

Presentation of the company

SASU Les Délices de Maeva is the holding company set up in 2018 to acquire SARL La Pétrie Gourmande active in the bakery-pastry sector. The company, currently managed by Mr Cuadrado, has 3 employees and is based in Gigean. The bakery-pastry is located in the heart of the city centre on one of the main squares, close to many shops. Positive opinions on Google confirm its good reputation.

The company’s main activities are:

• traditional bakery products.
• special breads and pastry.

The company works with diversified client base with regular customers and local suppliers.

After 9 years of exploitation, Mr Cuadrado wants to change to another professional activity.

The buyer, Mr Rouxhet is a qualified professional with 20 years of experience as a baker. He knows the bakery well because he has been working there since 2017.

The two saleswomens of the business will be kept, which will ensure follow-up with customers.

Project Description

Mr. Cuadrado wants to sell his bakery valued 190 000 €, valuation based on standard of the market. Mr. Rouxhet via a dedicated company wish to borrow 123 000 € over 72 months to finance the acquisition of the underlying business company. The balance will be financed by the buyer personal contribution and a vendor loan. This project will be realised next months.

The amount offered on the platform is limited to 60 270€, which is in line with the regulatory limits.

Analyst’s Opinion

The borrower is a holding company dedicated for the acquisition whose revenues are derived from services invoiced to its subsidiaries. The financial analysis was carried out on the financials of the target company.

With a turnover of 264 000 € in 2018 and an experienced team, the company has a good track record combined with a two-digits operating margin.

In 2017 and 2018 the decrease of turnover is driven by the gradual withdrawal of the seller as well as the reduction of the opening hours in 2018. The forecast is based on the historical performance of the bakery taking into account : i) implementation of a lunch formula for the 300 students of the city’s high school, ii) and the investment in a new “”ventilated”” oven to save time and increase productivity (including in the financial plan).

The borrower has a good repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,24 and a strong financial structure, with a forecast net debt / ebitda ratio of 1,92 and a net debt / shareholder equity of 179%.

taking into account the buyer personal contribution and the subordinated vendor loan.

The analysis of the project leads to a credit rating of C and a 9,00% annual interest rate.

Strong points:

• Good historical performance based on diversified client base.
• Good repayment ability with a forecasted FCCR of 1,24.
• Good geographical location in the heart of the city centre on one of the main squares.

Points of caution:

• Ownership change risk.