First round of bids for LFC

[Dan Vito Corleone]

Due Dillgence? That's where any propspective buyers look at our books, laugh and then fuck off quickly right Coop?

 

This is a big concern for me personally, something that isn't being discussed a lot but what will frighten some bidders off, I am convinced of it.

[coop]

Due Dillgence? That's where any propspective buyers look at our books, laugh and then fuck off quickly right Coop?

 

Yep.

 

If there is no set price on the club then they might stick about longer.

 

Don't forget the owners did accept £450m not that long ago so personally i think we are looking at around that figure again.

[Gary Mac Legend]

I bid £26.

You see how fucking easy it is to get bids? What have these cunts being doing for months on end?

 

 

Just got off the phone with Northern Rock, I have a loan to buy the club in full, now to set up a holding company, 'Kop Zimbabwe'. I'll be a wonderful custodian, I promise.

 

 

I thought Due Diligence was where the financial background, and history of any potential bidder was analysed by an independent company. To ensure they have the funds available, to follow through with the new stadium and that they're financial history was sound?

[Guest Numero Veinticinco]

This is a big concern for me personally, something that isn't being discussed a lot but what will frighten some bidders off, I am convinced of it.

 

I don't think it will, mate. Everything there shows the potential for earning when the debt is removed from the club. The debts are worrying only in the scenario that the owners can't repay them. If the yanks had the debt on the holding company and, in the short term, had the cash to pay for transfer and wages (whilst taking all the profit from the club to pay the debts), things wouldn't be as bad.

 

I'd say, as a perspective purchaser, the books won't put them off of a purchase. It will obviously influence the offers, though.

[paddyberger15]

This is a big concern for me personally, something that isn't being discussed a lot but what will frighten some bidders off, I am convinced of it.

 

Dan, I'd say that over the last 7 years, since the beginning of Krusty looking for new investment in the club, the only people that have looked at the books and decided that we were worth it were DIC and the Cowboys. DIC did proper Due Dilligence and thought we were viable enough and Hicks and Gillett knew exactly what they planned to do to the club before they bought it, so just skimmed the whole process in about an hour because they didn't give a fuck about long term prospects, fluidity, sustainable growth or investment.

So in 7 years, that is two sets of (potential) investors who have seen our books and haven't laughed heartily before fucking off.

And to this day I'm yet to be convinced that DIC would have been THAT much better for us than these two cunts. That is a real concern when you think of the type of new owners we could be getting.

[Barrington Womble]

Do you fancy joining forces and putting together a consortium?

 

could do. i'll buy the club, you can build the ground.

[coop]

Dan, I'd say that over the last 7 years, since the beginning of Krusty looking for new investment in the club, the only people that have looked at the books and decided that we were worth it were DIC and the Cowboys. DIC did proper Due Dilligence and thought we were viable enough and Hicks and Gillett knew exactly what they planned to do to the club before they bought it, so just skimmed the whole process in about an hour because they didn't give a fuck about long term prospects, fluidity, sustainable growth or investment.

So in 7 years, that is two sets of (potential) investors who have seen our books and haven't laughed heartily before fucking off.

And to this day I'm yet to be convinced that DIC would have been THAT much better for us than these two cunts. That is a real concern when you think of the type of new owners we could be getting.

 

The Kuwait mob had a look as well and decided on making a bid.

[zigackly]

I don't think barcap would get involved if the club was unsaleable; they will be looking to make a wedge on commission. The club in it's current state is worth around about or just less than it's debts, so the only buyers who will be interested are ones who have the clout and the will to build the stadium. I can't see any new owners being as bad as the yanks who just wanted to do a glorified bait and switch where they make a massive profit on the basis of a set of plans for a non-existent stadium.

[chrisbonnie]

The Kuwait mob had a look as well and decided on making a bid.

 

who pulled out, us or them?

[Guest Numero Veinticinco]

The Kuwait mob had a look as well and decided on making a bid.

 

I'd also wager that one of the main reasons parties were not interested in coming forward for a bid is the ridiculous way the Americans behaved. After first they were looking for partial investment. Who the hell wants to work with a pair of guys that can't even talk to each other.

 

What I'm saying is that it isn't that we're an unattractive business proposition.

[paddyberger15]

The Kuwait mob had a look as well and decided on making a bid.

 

True enough Coop. I'm kinda wondering what the outcome of that would have been mind. Was it Hicks who put the Kybosh on that? Over inflated asking price?

I think someone who could get the club at a realistic price, which as you say is around 400m, would be more happy managing the debt and could be seen as a sensible and more respectable owner. I would have grave suspicions about anyone who would want to pay a Hicks style asking price with the debt factored in, on the basis that they aren't likely to give a fuck about investment and sustainable growth either.

If all you are going to do is take money out of the club hand over fist, then I suppose paying way over the odds is still an attractive proposition of sorts...and then just fuck off in a few years time and leave someone else to sweep up the mess. Just like these two cunts have and will do.

[paddyberger15]

I don't think barcap would get involved if the club was unsaleable; they will be looking to make a wedge on commission. The club in it's current state is worth around about or just less than it's debts, so the only buyers who will be interested are ones who have the clout and the will to build the stadium. I can't see any new owners being as bad as the yanks who just wanted to do a glorified bait and switch where they make a massive profit on the basis of a set of plans for a non-existent stadium.

 

'Clout' mentioned in a post on the FF. Is this the new GF invasion?

[coop]

who pulled out, us or them?

 

The rumour was that everything was sorted but Kuwait pulled out at the last minute.

 

I can't remember the details as to why they were supposed to have decided against buying the club but i think at the time the two rumours flying about were that a/ they were expected to pay the Kop Cayman debt which they refused to or b/ Hicks and Gillett wanted a percentage of future profits from the stadium.

 

Of course the whole deal could have been bollocks but wasn't there a legal matter between Keith Harris and Kuwait after he said he was entitled to some money after completing his side of the deal.

[paddyberger15]

The rumour was that everything was sorted but Kuwait pulled out at the last minute.

 

I can't remember the details as to why they were supposed to have decided against buying the club but i think at the time the two rumours flying about were that a/ they were expected to pay the Kop Cayman debt which they refused to or b/ Hicks and Gillett wanted a percentage of future profits from the stadium.

 

Of course the whole deal could have been bollocks but wasn't there a legal matter between Keith Harris and Kuwait after he said he was entitled to some money after completing his side of the deal.

 

Christ yeah, I'd forgotten all about that unedifying charade.

[Gary Mac Legend]

Wouldn't bidders want to wait until RBS have backed Hicks and Gillet into a corner? So they're forced into selling at a cut-price? That would make more sense? Now, at this point in time, they have leverage to negotiate a higher price.

[coop]

Wouldn't bidders want to wait until RBS have backed Hicks and Gillet into a corner? So they're forced into selling at a cut-price? That would make more sense? Now, at this point in time, they have leverage to negotiate a higher price.

 

Possibly but your running the risk of someone getting infront of you by putting a bid in now.

 

If it is really an auction process which does seem to be the case then i doubt we will be talking about the figures Hicks was mentioning.

[Royal Family]

Sunday Times business (rather than sport) correspondents reporting that RBS are putting increased pressure on the club hierarchy and threatening to call in a massive part of the loan in October. They cite the similarity with the situation in Italy where a bank (UniCredit) has effectively taken over at Roma.

 

Backing up coop's point on due diligence, i wonder if the problem is the massive loan at extorionate rates to the Americans that are on the club's books? This strikes me as the main problem given, even if we go in to administration, Hicks and Gillett will still be our main creditors.

[Gary Mac Legend]

Possibly but your running the risk of someone getting infront of you by putting a bid in now.

 

If it is really an auction process which does seem to be the case then i doubt we will be talking about the figures Hicks was mentioning.

 

 

We know, Broughton has made it clear on two occasions it's a 'willing buyer willing seller process', we all know what that entitles. But your point depends on there actually being a larger number of interested parties and potential bidders. People may not be so keen on this investment than we assume. Hicks and Gillet currently have leverage in negotiations, with players like Torres and Gerrard, Reina etc. there's a very good playing squad, and Torres and Gerrard are a marketers dream for commercial revenues. If a bidder bides their time, and these players leave, then RBS have H & G backed into a corner, they can obtain the club for a relative cut-price.

 

I still don't believe the club to be worth more than £300-£320 million personally, which is 30-50 million short of the debt. Tom and George will be determined to sell for a profit, who will be willng to buy the club for an amount they see acceptable for the return they want? Furthermore, any potential buyer may not be keen on the idea of cutting these parasites in on future profits generated by the new stadium, they played no part in developing the stadium, and have no right to expect future profits from the stadium. The plans they drew up, were paid for by the club, not themselves. I find it prepostourous in all honesty.

[stringvest]

...in the middle of July, said Broughton. So where are they? Are they with the spade in the ground and Snoogy Doogy somewhere?

 

Sorry, but why the fuck should you or I or anybody else get to hear about them?

[Guest PurpleNose]

I bid £26.

You see how fucking easy it is to get bids? What have these cunts being doing for months on end?

 

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[DJLJ]

Sorry, but why the fuck should you or I or anybody else get to hear about them?

 

To be fair, everything else to do with our club seems to be played out in the media.

[Albertini]

From the Business section of today's Sunday Times:

 

Lenders up pressure on Liverpool Owners

 

The American owners of Liverpool FC are under pressure to relinquish control of the Premier League club to a new investor by the end of the summer. RBS which is owed about 350m by Kop Holdings is losing patience with attempts to find a buyer for the Merseyside club and could take control of the process.

 

The Sunday Times has discovered that a clause in the loan documents allows RBS to call in a substantial amount of the money owed in October. The move would trigger a default on the debt by the club.

 

Control of the club would pass to the bank which is majority owned by British taxpayers. The American owners Tom Hicks and George Gillett were due to repay the debts in March but were given an extension of a year in return for agreeing to sell up.

 

RBS wants to continue its financial relationship with Liverpool but it wants Martin Broughton, the chairman, to find a new owner quickly.

Pre tax losses jumped 17% last year to 54m, taking losses over the last two seasons to 95m. Annual interest payments rose to 40m.

 

Although the bank has no desire to own one of Britain's best supported and most successful football clubs, it is not afraid temporarily to take control of the sale process. RBS are considering using the October date as a final deadline for the Americans to sell up.

[Albertini]

Going on what Broughton said then he will be inviting non-binding bids by the end of next week to a view to completing due dilligence.

 

After completing this then they will either walk away or do a legally binding offer for the club of which they will hope to be accepted.

 

I doubt very much we will here anything else until the sale is almost completed.

 

My understanding is that the due diligence would have been done already by an independent auditor as the club (or any business) haven't got the resources to support multiple bidders all sending in auditors at the same time.

 

I believe that is what happens in most large takeovers and would explain why there was a delay from Broughton's appointment to the information memorandum going out.

 

Can't believe initial bids would be made unless the bidders had some idea of due diligence beforehand.

[coop]

My understanding is that the due diligence would have been done already by an independent auditor as the club (or any business) haven't got the resources to support multiple bidders all sending in auditors at the same time.

 

I believe that is what happens in most large takeovers and would explain why there was a delay from Broughton's appointment to the information memorandum going out.

 

Can't believe initial bids would be made unless the bidders had some idea of due diligence beforehand.

 

The interested parties will have been given the sales document given to them from BarCap.

 

They will then be expected to give some sort of non-binding bid to the club based on that sales document.

 

If their bid appears satisfactory then they will be invited through to the next phase of the auction where they will be able to do a complete due dilligence and hopefully then a binding bid will be forthcoming.

[Chinandeler Bong]

...in the middle of July, said Broughton. So where are they? Are they with the spade in the ground and Snoogy Doogy somewhere?

 

Read his quotes properly before wasting another thread on the subject.

Negged.