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 Loans
International IPR 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 Loans from CAVENDISH MANAGEMENT RESOURCES
A unique scheme, providing businesses with loans that make no demands on cashflow, while substantially increasing profits.

6. Summary of Scheme Loan generated by purchase cost savings
Up to 100% of annual savings available as a loan
Scheme lasts for 30 months
Company receives 50% - 85% of savings
Company’s share normally covers both capital repayments and interest charges in full
After 30 months, 100% of savings to Company

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 £2 million + (the minimum loan is £200,000)
If they have partial security for the loan (the Scheme can create its own collateral)
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 fundamentally unsound

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
Chemical Company – saved £600K on £20M sales turnover
Confectionery Company – saved £335K on £15M sales turnover
Cost savings always pre-agreed with company before Loan Scheme starts

10. Stages of Scheme
3 stages. Company signs agreement at outset, but can withdraw at any time prior to Trial Period
Stage 1: Purchase audit
Free review of purchasing of materials and overheads
Recommendations to company
Stage 2: Trial period
3 months in which to implement and validate savings
Final schedule of savings produced
Stage 3: Contract period
Loan input – repaid over next 30 months
Company pays 1/12th of annual savings each month
At end of contract period, Company retains all cost savings in perpetuity

11. The Loan
An ordinary commercial loan, subject to normal conditions and at a normal interest rate
If inadequate security, Scheme will pre-start to build collateral reserve from savings
Loan capital and interest paid from company’s share of savings over 30 month contract period
Company retains legal liability for the loan

12. Financial Management
At outset, a third party is 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
Use Company’s share to repay Lender. Any surplus returned to company
CMR receives no up-front fees. Its earnings come only from tangible savings

13. Safeguards What happens if annual savings fall over course of scheme?
Provision for a fresh audit
Safety margin of 15% built into Scheme
Advisability of a slightly smaller loan
In event of a shortfall in a particular month, Company pays balance of capital repayment directly to lender

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
Confirms Company’s right to terminate at any time before Trial Period
Protects CMR in the event of early termination
Principles of scheme are fixed. Details can be negotiated.

15. Financial example
Sales turnover £5,000,000 Purchased cost base £2,500,000 Maximum savings identified (12%) £300,000
Annual savings agreed at month 1 £250,000 Loan advanced £250,000 Monthly repayments (30 months) £8,333 Company’s monthly payment £20,833 Overseer’s fee £521 Company’s share £10,156 (CMR’s share also £10,156)
Annual savings revised at month 13 (-15%) £212,500 Company’s monthly payment £17,708 Overseer’s fee £443 Company’s share £8,633 (CMR’s share also £8,633)
Net position after 30 months: all loan interest paid; all capital repaid; £1,432 surplus to Company

16. Summary Loan provided from cost savings, not cashflow
No upfront costs; no costs at all except from savings achieved
All purchasing decisions remain with Company
Any purchasing decisions can be reversed
Company can withdraw at any time prior to Trial Period
Impartial financial administration
Even companies without full security can be eligible
Scheme can replace existing borrowing
At the end, Company retains full benefit of savings

17. Summary of client benefits
Essentially ‘free’ loan capital
Interest paid, loan capital repaid
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

18. Summary of benefits for Bank
Increases existing loan business
Allows more ‘marginal’ loan applications to pass criteria because of improvements to collateral & company viability
Helps existing ‘problem’ loans
Switching part of existing loan into Scheme will allow loan capital and interest to be paid from cost savings
Also improves customer’s underlying viability
Expands market share
Can be used to promote innovative funding solutions
Can be integrated with conventional loans & debt financing etc.
Can be dual branded between Bank and CMR

19. 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

20. Thank you CAVENDISH MANAGEMENT RESOURCES
Powerful, innovative
resources for businesses

21. CAVENDISH MANAGEMENT RESOURCES
Powerful, innovative
resources for businesses

22. Summary of benefits for CMR members
A great revenue generator – from £50,000 upwards per client introduced and managed
A great door-opener to other CMR business with the client
A great credibility and awareness tool – will help to open connections with professional firms and other business introducers