Raising finance – funding dreams

Partner and leisure expert, Simon Mydlowski was recently interviewed by Charlie Whitting, Pub & Bar’s deputy editor about the different types of funding options available for companies as the routes to raising finance have been evolving and expanding.

The investment in sites that the on-trade has seen over the last decade or so has been one of the major trends of recent years. From single site operators entering the industry to large pub companies looking to focus on quality over quantity, refurbishments and renovations have been ongoing, with groups growing estates. All of this has required the raising of finance and, fortunately, the ways in which this can be done have also seen renovation and innovation.

There are operators out there who will find the money for investment or acquisition from their own cash flow. This allows them to have total control over their business without external pressures, required returns on investment or loan deadlines, but it is a long-term approach that requires careful management of a business and takes time to build up.

Gordons’ Simon Mydlowski said: “This is always a possibility but the question is whether an outlet can make enough to satisfy the capital investment needed against the need for operators to draw a wage. In a world where there seems to be an urgency to achieve instant success, this route is often overlooked.”

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First published in Pub & Bar Magazine, 14 March 2016, p.36-39. Reproduced with permission.