Berwick 2016

[Tardis 54]

When it comes to buying any business(yes that's what the speedway is) the first thing ant buyer would want to see is the last few years accounts and get a list of assets and equipment and get these valued before they make any offer.

 

[tweedcider 75]

When it comes to buying any business(yes that's what the speedway is) the first thing ant buyer would want to see is the last few years accounts and get a list of assets and equipment and get these valued before they make any offer.

 

The last accounts filed were for the 2014 Season, so it is arguable that they do not give a fair reflection of the current situation of the business. Assets could be interesting too.

 

"Due diligance" is the phrase i believe, or "buyer beware".

[Shadders 4,135]

I was very sad to hear the decision made by the promotion on Sunday.

 

I think John Anderson has tried very hard to establish speedway at Berwick and deserves a great deal of credit for that.

 

Fingers crossed a purchaser comes forward.

 

One thing : Mr Anderson has to retain the catering rights. Berwick is the only place I eat speedway food and it is rightly renowned for its quality.

The fish & chips at Mildenhall?

[bigeddiechek 1,094]

The last accounts filed were for the 2014 Season, so it is arguable that they do not give a fair reflection of the current situation of the business. Assets could be interesting too.

 

"Due diligance" is the phrase i believe, or "buyer beware".

 

I could mention the difference between club and company, but it might upset some Tigers...

 

[DSC67 1,465]

 

I could mention the difference between club and company, but it might upset some Tigers...

 

Is it not Berwick Bandits Ltd ?

[screm 8,057]

Is it not Berwick Bandits Ltd ?

 

It is registered as Berwick Bandits Speedway Club Ltd.

The last accounts filed were for the 2014 Season, so it is arguable that they do not give a fair reflection of the current situation of the business. Assets could be interesting too.

 

"Due diligance" is the phrase i believe, or "buyer beware".

 

So the accounts for the 2015 season and right up to the end of this could alter the value of the club as this time last year the club was facing the end unless new investors could be found and is in much the same state now, any buyer isn't buying what it was or what it could be, they are buying the club as it is now.

[balderdash&piffle 720]

 

It is registered as Berwick Bandits Speedway Club Ltd.

 

So the accounts for the 2015 season and right up to the end of this could alter the value of the club as this time last year the club was facing the end unless new investors could be found and is in much the same state now, any buyer isn't buying what it was or what it could be, they are buying the club as it is now.

Never quite understood why Ltd. Companies can defer their returns for 12 months, it means their accounts are always one year behind. This can only give you a view of the previous years accounts, e.g the accounts lodged this year are for 14/15 financial year and not 15/16. It is as you say, by looking at the accounts,is irrelevant , as you cannot come to a decision on them especially where an accountant as manipulated a certain amount of creative accountancy. All you can do in this situation as a potential purchaser is get an inventory, assess the value for yourselves and apply a value to it. Whatever the vendor claims in essence can be ignored, it may be the case that the purchaser and the vendor are on the same level, but it would be unusual.

[bigeddiechek 1,094]

I don't know any successful investor who has bought a company based on filed accounts alone.
I know a few unsuccessful ones who have!

 

The value of intangible assets is something that cannot be easily quantified in accounts (or at least many can't - before any accountants try to correct me!).

 

Any potential investors will look at the success of the club in many areas over the past few years and will - without a doubt - see there is a very strong base to build on.

 

One thing I would surmise from the accounts is that the current promotion have put a heck of a lot of money into Berwick Speedway to make all the improvements, and to keep the club alive.

There doesn't appear to be any bank debt either.

To the right people it could be a very good business to acquire and take forward.

 

I'm encouraged that there hasn't been any talk of us closing down, and I'm hopeful for next season.

Whatever the vendor claims in essence can be ignored...

 

That's quite a general statement.
There are so many factors involved in buying a business that simple statements like that don't really work.

 

Vendors will have their price - externally, and internally - likewise buyers.
However, that is only for the negotiation phase.

 

There's an awful lot more to the process than that.
As I've mentioned, intangible assets are a big factor: especially in this case. I'm not alluding to rider contracts or equipment, several other intangibles that will have different values to different people exist.

 

One thing for sure is that it has been left in a good place for fresh people to come in and move it forward.

[Fromafar 10,390]

Irrespective of the value and the asking price,the biggest problem for any future owner is the financial state the sport is in and reviving the crowd levels to make the purchase viable IMO .At least the there is no big outlay to get the Stadium and Regulatory requirments as everything is in place as the present Promotion done an excellent job on that front.Whether that fact adds value to the price is debatable though.

[bigeddiechek 1,094]

Irrespective of the value and the asking price,the biggest problem for any future owner is the financial state the sport is in and reviving the crowd levels to make the purchase viable IMO .At least the there is no big outlay to get the Stadium and Regulatory requirments as everything is in place as the present Promotion done an excellent job on that front.Whether that fact adds value to the price is debatable though.

 

It must, as it is expenses that would have needed to be incurred to bring it up to the excellent standard it is in.

 

One thing is for sure, it gives it a better chance of working.

 

I agree, the whole of British Speedway needs a shake up.

[Tardis 54]

You must remember the only bits of the stadium that the speedway has a responsibility for are the track(inc fence and lights on the bends) and the pits also the PA system everything else is down to the BRFCSC as lease holders

[bigeddiechek 1,094]

You must remember the only bits of the stadium that the speedway has a responsibility for are the track(inc fence and lights on the bends) and the pits also the PA system everything else is down to the BRFCSC as lease holders

 

Yes, I understand that.

What I don't know is how much the fence, lighting, etc would cost to install were it no there.

 

That's certainly one thing to take into consideration when costing out. These are the tangible assets.

All the other bits on top of that, which are much more difficult to quantify.

 

One thing is for sure, certainly outwith my financial reach!

[screm 8,057]

You must remember the only bits of the stadium that the speedway has a responsibility for are the track(inc fence and lights on the bends) and the pits also the PA system everything else is down to the BRFCSC as lease holders

 

I am sure BRFC will be keen to see speedway continue at Shielfield, take away the rent money will leave a fair sized hole in the coffers of the football club.

[samsplint 49]

Screm the lease is held by the supporters club not the football club, but your right it would be a big hole to fill

[Triple.H. 1,987]

Screm the lease is held by the supporters club not the football club, but your right it would be a big hole to fill

I wouldn't mind betting that even the most fervent of anti speedway members of the Berwick Rangers board and fans. Would want the Bandits to survive .