The Deal Read Online Free Page B

usually supported his proposals.
    “But the balance sheet, Oliver,” she went on, “it shows net assets of only five hundred and fifty thousand pounds. My assessment is that their cash position is tight and they are struggling to pay their bills on time. They’re borrowing from other sources by factoring their debtors. Just explain that for me please.”
    Jody clarified that it was possible for companies to use their debtors – customers’ bills which remained unpaid – as security for lenders who might advance as much as eighty percent of the face value, an operation known as factoring.
    “City Fiction has repaid its bank loan, Jody,” continued Oliver, “and now the bank is refusing to extend a fresh overdraft facility. That’s why they want us to raise them two million pounds. The larger sum will address the issues you’ve identified, Jody, and allow them to invest in more titles.”
    “So, they want to raise two million pounds for thirty percent of the company. I think we can get that from the investment funds and our clients here in London,” Oliver went on, looking at Jody.
    “I did like Alistair,” said Abbi. “And was that his sister in the suit?”
    “Yes,” said Oliver. “She deals with foreign rights and spends much of her time in Europe. She told me that she’s planning a visit to Hong Kong and the Far East.”
    “Jody,” asked Andrew, “have you met with their finance team?”
    “Well, Andrew, it’s hardly a team. It’s often the case with these smaller companies. Their financial support lags behind their growth. They have a part-time finance director, David Singleton, whom I liked. He produces management accounts by the tenth of the month. There is a finance manager and she’s really good. So overall, it’s competent. But I must say that a fund-raising process will test them. It’ll put a lot of pressure on the two individuals.”
    “This is pre-public markets, Jody,” said Oliver, “for that very reason. My strategy for them is that they’ll be ready for a flotation, hopefully on the London Stock Exchange junior market, in about two years. So we’ll raise the money using an EIS document.”
    “Yes,” said Abbi. “Our clients will like the EIS tax benefits.”
    “Abbi,” said Andrew, “I understand your enthusiasm for the tax relief for investors that the EIS means, but remember that the investment story must stand up in its own right. Tax relief does not make a bad investment into a good proposition.”
    Abbi nodded and smiled at Oliver.
    “You know, Andrew,” said Jody, “I do like this deal. But I think the problem is that Oliver hasn’t had the chance to really research the publishing industry. We all know things are changing. On the tube these days more and more people seem to be reading books on their Kindles.”
    “Jody is saying what I was thinking,” continued Andrew. “Oliver, I know you’re stretched at the moment but most of the information in your proposal is just what the company has told you. I thought the same about the retail marketing venture we looked at last week. I think we need to recruit a research analyst who can provide reports of greater depth.”
    “Good luck with that,” said Oliver, under his breath.
    The forty-eight hours which had passed since Charles Harriman had started the process of coming to terms with his alcoholism had catapulted him into the supporting arms of his wife. For two days they had been locked together.
    Lucy took her left hand and, using her handkerchief, wiped the perspiration away from her husband’s face. With her other hand she held Charles’s arm and squeezed hard. The children had been taken to school by their neighbour and they were now sitting alone in their kitchen.
    “There’s nothing in this world, Charles,” she said, “that Scarlett, Lily, Tabitha and I wouldn’t do for you. You are a wonderful man. You’re needed by your children. We’ll sell the house. I’ve arranged with the surgery that