How to bank-finance my investment?

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Inc PAPAYA (p. 18) (in thousand €)


Inc PAPAYA (p. 18) (in thousand €)

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Papaya Inc.


Papaya Inc.

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INVESTMENT

New investment opportunity: High efficiency Low Cost Fixed Port Container Portal Crane
Investment

INVESTMENT New investment opportunity: High efficiency Low Cost Fixed Port Container Portal
of 7 million euro, amortisable on 7 years; economic impact of investment 7 yrs.
Existing turnover kept but cost of services decreases by 2 million/year (less outsourcing)
Corporate tax = 28 %; the hurdle IRR = 12%.
Is investment worthwhile? (leaving financing aside)

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Financing options

Although undercapitalized, owner refuses to open capital; Reluctant to mezzanine, and

Financing options Although undercapitalized, owner refuses to open capital; Reluctant to mezzanine,
surely not convertible or warrantable.
Analyze each option from the ‘financiers’ point of view:
- make concrete proposal (amount, reimbursement modalities, guarantees (if any), …
- make new master plan (balance structure + P&L)
- make risk analysis
- and conclude: feasible or not?
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