IGF involvement in Devon Sweet Factory acquisition of the assets of Crediton Confectionery
Recently IGF successfully worked with Devon sweet factory to complete the acquisition of the assets and goodwill of Crediton Confectionery through a prepacked sale out of administration. Such transactions are always completed in haste and with a minimum of structure in order to minimise damage to the acquired business. The size of the facility provided was only £1.135m (An invoice discounting facility of £1.2m and fixed asset loan of £135,m but IGF applied considerable resources to ensure that the transaction was successfully completed within a demanding timescale.
The transaction that we proposed to the administrator with respect to the Crediton Confectionery receivables was unusual. In fact he said that it could not be done. DSF wanted to purchase all the Crediton Confectionery receivables at completion in order to ensure that customers had a smooth transition. IGF understood the proposed structure and the reasons for it and worked hard with the administrator and outgoing funder to ensure that it happened. This involved IGF in considerable extra work to audit the receivables and manage their transfer at a time when IGF was extremely busy on closing other deals.
This professionalism was typical of IGF. IGF has a very experienced team which understand the administration process and the complexities of dealing with administrators and outgoing funders. This enables them to not only offer competitive terms but provide invaluable advice throughout the administration process.
A further strength of IGF is their approach to transactions. Their commercial team works closely with the credit team and the account managers to ensure that client expectations are met not only with respect to the terms of the facility but the take on and management of the account.
In conclusion I believe that the successful acquisition of the Crediton Confectionery assets by DSF was in large measure due to the professionalism of the IGF team and would have been very difficult to complete without their considerable transaction experience and commercial approach.