Background
European Valuations was engaged by Fargro Limited, a West Sussex based horticultural solutions and products specialist to review their accounts receivable and to appraise their inventory assets for potential asset-based lending (ABL) purposes in conjunction with a sponsor backed management buyout (MBO).
Fargro is the UK’s largest, and a leading authority, in developing and supplying biopesticide solutions and integrated pest/disease management and other specialist products to horticultural growers and amateur gardeners.
We worked closely with Fargroā€™ s advisers FRP Advisory (FRP) and Fargro to agree a comprehensive scope to satisfy potential lender requirements. The scope of our work included a pre-lend due diligence review of the accounts receivable and an inventory evaluation & appraisal at Fargroā€™ s premises in Arundel, West Sussex.
Our report and advice were used by FRP and potential lenders in their credit decision making and structuring processes to deliver a working capital facility to support the MBO and to provide further headroom for growth. An undisclosed ABL funding facility was provided by Shawbrook Bank.