TJG Bistronomie

Presentation of the company

Created in 1991, La Poele d’Or is a bistronomic restaurant. The company, managed by Jean-Francois Ordioni, employs 2 people and is based in Meounes-les-Montrieux (France).

The company works with approximately 650 individual customers per month and has a capacity of 40 covers per day.

The restaurant is ideally located on a departmental and 35 minutes from Toulon.

Project Description

Mr ORDIONI and his wife wish to retire and sell their business La Poele d’Or valued at 185 000€. The buyer via a dedicated company wishes to borrow €165,000 over 72 months with a 3-month grace period to finance the acquisition of the business. The balance is financed as a capital contribution.

*This project is a medium-term loan with deferred capital amortization proposed on the Lendix platform and therefore has a different method of repayment of capital than standard projects. For the first 3 months, lenders will receive interest and for the next 69 months, lenders will receive interest and principal amortization. This capital repayment profile is consistent with the borrower’s financing needs while allowing lenders to earn a higher amount of interest.

This is a flexible bridge loan, offering the borrower the possibility to prepay without fees beyond the first 9 months.

Like all projects presented to private lenders on Lendix, it is co-financed with institutional investors, sophisticated investors and the management of Lendix, subscribers to the Lendix Fund. |

Analyst’s Opinion

The borrower is an acquisition holding company whose revenues come from services invoiced to its subsidiaries. The financial analysis was performed on the accounts of the acquired company.

With a turnover of €246,000 in 2016 and an experienced team, the company has a good performance record in terms of activity combined with double-digit operating profitability.

After a few years under management lease, the seller took over the restaurant in 2015.

The forecast has been prepared on the basis of 2016 performance.

The restaurant expects an increase in sales in 2017 combined with a profitability equivalent to that of 2016.

The borrower has a solid repayment capacity with a fixed charge cover ratio* (FCCR) of 1.35 and a strong financial structure with a net debt to EBITDA ratio of 1.1 and net debt to equity ratio of 269.0%.

Taking into account the investor’s capital contribution.

The analysis of the project and the borrower leads to a B rating with a strong financial solidity and a rate of 6.75% per year.

Highlights 

• Good performance since the recovery in 2015.
• Excellent reputation of the restaurant and good experience of the buyer.

Vigilance Points 

• Risk inherent in the acquisition of a business

*The multiple of FCCR at 1,35 means that the company has a safety margin of 35% in relation to its ability to repay its loan maturities.

The expert opinion is given as an indication on the basis of the information provided by the project leader and information from our databases (Scores & Décisions, Fichier Bancaire des Entreprises). This opinion is only a reflection in the decision of a lender to participate in the financing of a project.