Cambridge Cluster

Image by Garrettc via FlickrThe Daily Telegraph reports LordBilimoria has put the company he founded up for sale at an estimated £200million.  Cobra Beer would prefer to sell a share in the business despite raising capital of some £15million earlier this year.  The report says that the “good Indian Lord” to borrow a phrase still controls some two thirds of the business.  But he did last year so I wonder on what terms he was able to raise the £15million; no equity?

Sales seem to be always quoted at retail value, now £178million.  The restaurants must mark up by some 3x as the turnover of the company is around £50million.

It will be interesting to know which business plan resource Cobra uses for it’s planning. If Cobra goes for the asking price it will be a just reward to Lord Bilimoria but his original business partner who owned a half-share at the start must rue the day he sold out and moved on.  It reminds me of one of the founders of Apple who moved on thinking the business would come to nothing and gave up his 10% holding.

20:20 vision is what we all need.