1. CAVENDISH MANAGEMENT RESOURCES
Powerful, innovative
resources for businesses

2. About CMR CMR - established in 1984 CMR - over 3,500 private investors
CMR – National Special Associate of NBAN
CMR - over 450 senior experienced executives
CMR - throughout the UK & Ireland
CMR - experts in every industry & market
CMR – many innovative resources

3. CMR’s Resources Equity Funding Self-funding Business Finance
International Technology Licensing
Corporate Recovery & Restructuring
Mergers, Acquisitions & Co. Sales
Management Support & Non-exec directors
Interim Management & Consultancy

4. CMR’s operations Ireland Scotland North west North East
West Midlands East Midlands
Western Chiltern East Anglia
Thames Valley
London
South West
Mid-South
South East

5. Self-Funding Business Finance from CAVENDISH MANAGEMENT RESOURCES
A unique scheme, providing businesses with finance that makes no demands on cashflow, while substantially increasing profits.

6. Summary of Scheme Business capital through GE Commercial Finance
Linked to CMR’s Procurement Cost Savings Programme
Supply chain savings through CMR normally cover all interest & service charges
Company receives 50% to 90% of savings depending on size
Initial period covers 30 months, thereafter negotiable

7. Eligibility Companies are eligible … Companies may not be eligible …
If they are established, viable businesses in UK or Ireland
If they have purchase costs of £1½ million or greater
If they can satisfy normal banking requirements (the Scheme can help by creating collateral from the improved profitability)
Companies may not be eligible …
If they are predominantly a retail business
If they spend large amounts on a few specialist commodities
If they are too financially weak

8. Cost Savings
Typically, even an efficient company will save % of purchase costs. How can we do this?
High degree of specialist knowledge & buying power
Access to a wider range of suppliers
Long experience in negotiating purchases
Objectivity of outsiders
Dedicated single-mindedly to task, with no distractions
… and Company retains full control at all times

9. Cost Savings – case studies
Water industry client – saved over £750K on £3 million
Advertising client – saved over £1 million on £5 million
Utilities client – saved 30% on IT spend of £1.2 million
Financial Services – saved 50% on bank spend of £1.1M
Government Dept – saved 35% on £6.3M spend
Financial Services – saved 18% on stationery spend of £850K
Cost savings pre-agreed with company before Finance Scheme starts

10. Stages of Scheme Stage 2: Initial period (30 months)
Stage 1: Purchase audit
Free review of purchasing of materials and overheads
Recommendations to company
Agreement on annual cost savings level
Stage 2: Initial period (30 months)
Implementation of cost saving action
Sharing of agreed savings (10% to 50% goes to CMR depending on size)
CMR’s share pays for the costs of the scheme (recovered over 30 months)
Company’s share (50% to 90%) used to pay interest & service charges, with balance going to further increase company profitability
Stage 3: Follow-on period
At company’s discretion, CMR cost-saving operations can continue
CMR’s share of cost savings drops by 75% on Initial Period

11. Self-funding Finance
Standard commercial finance, subject to normal conditions and at a normal interest rate
If inadequate security, Scheme may help because of the increased company profitability it brings
Interest and service charges normally paid from company’s share of savings over 30 month contract period
Company retains legal liability for the loan and interest

12. Financial Management
If appropriate, a third party can be appointed to oversee scheme – usually Company’s accountants
Overseers will:
Receive and disburse Company’s payment each month
After deducting own fee, pay Company’s share and CMR’s share
Monitor any audit arrangements
CMR receives no up-front fees. All costs & earnings come only from tangible savings

13. Safeguards What happens if annual savings fall over course of scheme?
Company can request a fresh audit at any time
CMR share of cost savings drops in line with audit findings
Company responsible for interest & charges if savings insufficient
What if company wants to change suppliers?
Company can change purchasing decisions at anytime

14. Legal Agreement Agreement
Commits Company to pay 1/12th of annual savings into scheme
for 30 consecutive months
Defines mechanism for calculating cost savings
Defines mechanism for amending annual savings
Confirms Company’s control over purchasing decisions

15. Summary Major boost to company profitability
Access to important new funding source
No upfront costs - all costs from savings achieved
All purchasing decisions remain with Company
Any purchasing decisions can be reversed
Even companies without full security may be eligible
Scheme can replace existing borrowings
Cost savings can continue ad infinitum

16. Summary of client benefits
Essentially ‘free’ business finance
Interest & charges normally paid
No up-front costs - all costs are paid from savings
Scheme also partially creates collateral base
Significant, permanent profitability improvement
Many companies will see profits double or more
Profit improvement already in Company
No sales increase required
No new markets to be opened
No staff redundancies
Often a quality improvement
All new suppliers are quality vetted

17. Summary of benefits for professional intermediaries
Helps clients to obtain funding and increase profitability
Scheme itself is a significant revenue generator for the firm introducing clients
Can be part of the firm’s service package for new and existing clients
Keeps the firm at the forefront of innovation in helping clients

18. CAVENDISH MANAGEMENT RESOURCES
Powerful, innovative
resources for businesses

19. Viewpoint: GE Commercial Finance
CMR Scheme can be used to give GE a major competitive advantage.
Cost savings can be used to offset interest and service charges. Effectively, free capital for clients
Increased collateral base can allow higher % loans to be granted?
Underlying improvement to customer’s profitability can also help existing clients experiencing trading/ financial problems.

20. The CMR/GE Scheme Marketing
CMR markets Scheme to SMEs throughout its regional operations.
GE markets the Scheme through its channels
If client only wants funding – this passed to GE
If client only wants cost savings – this to CMR

21. CMR / GE Scheme arrangements – new & existing clients
Introduction of customer & initial CMR review
Initial GE Finance Review with client
CMR agreement signed by client
CMR client management team appointed
CMR procurement team undertakes audit (FOC)
Discussed with client & annual savings/phasing agreed
Cost saving actions initiated & scheme starts
Scheme monitored throughout contract period

22. CMR/GE Scheme possible arrangements – troubled clients
Scheme starts as standard if client considered survivable
Possible referral to CMR Investor Base if further equity capital desired
Possible referral to CMR Business Lifeline if survival doubtful
Management support from CMR Executives available