Bradford & Bingley announced last month it intended to sell-off all five of its ‘non-core’ lending businesses, including its estate agencies, surveyors Secure Move and Charcol.
An industry insider commented: “I have spoken with a number of venture capitalist banks who have informed me they value the business at no more then between £6 and £12 million pounds.”
Tony Jones, managing director of Pink Home Loans, said a management buy-out was the strongest possibility. “It is hard to say what the firm is worth, though I think that Bradford & Bingley are going to have to be a little more realistic about the asking price,” he commented.
Richard Griffiths, managing director of Network Data, agreed the company was no longer worth the £100 million Bradford & Bingley paid for it in 2000. “The key assets for a company like this is the goodwill and of course the personal,” he said. “This means that any new owner would have to try and tie people in, and that could cost them extra.”
Ray Boulger, senior technical manager at Charcol, said: “A management buy-out is one of the options and it would be surprising if it was not being looked at.”
