Strategic Financial Advice and Due Diligence

Sefton MBC is exploring a potential strategic partnership in the leisure and tourism sector and is seeking external support with due diligence on the partner. In addition, expert advice regarding the finalisation of the partnership structure and the development of a business plan is required for the partnership to deliver economic and social value to the Council and for the borough of Sefton.

Due diligence on a proposed partner is required to identify the key revenue and cost drivers of the business.

Operating results of the Company on a combined/consolidated basis - including information contained in prior year financial statements - will need to be understood and specific financial and visitor information, i.e. the detail behind income and expenditure levels, will be required alongside the following:

• Cash flow detail and trends; • Contracts; • Creditors / Debtors and robustness of Balance Sheet; • Accounts payable and receivable processes and procedures; • An understanding of key fixed and variable income/expenditure items; • Focus on "one-off" and/or unusual items; • Consideration of normal working capital requirement; • Understand any credit arrangements.

Alongside the exercise regarding due diligence, support will be needed to determine the partnership structure in conjunction with legal advice. This will include a requirement for expertise in the development of a detailed business plan - and financial plan including consolidated cash flow, profit and loss and balance sheet - which will have the ability to run different scenarios based on changes to assumptions and/or delivery options.

Support may also include perspective on the structure and shareholders' agreement for the new company.