Cattle & Sheep Farm in Devon
Moorfields were engaged to advise a multi-generational mixed farming partnership with bank debt of £4 million.
The business had suffered sustained trading losses and was unable to fund operations without increased bank borrowing. Disagreements among the partners — including whether to exit the dairy operation and sell non-core assets — created further financial and strategic strain.
The assignment required Moorfields to mediate between stakeholders, stabilise cash flow, and deliver a strategy to protect the lender’s position and preserve value.
Objectives
- Resolve partner disputes and create consensus on a viable business strategy.
- Generate liquidity through asset sales and operational restructuring.
- Maintain operational continuity of the core farming activities.
- Repay the secured lender in full and stabilise the long-term financial position.
Moorfields’ Actions
- Recommended and implemented the cessation of the dairy operation, generating immediate liquidity through the sale of cows and young stock.
- Prepared an Independent Business Review (IBR) to assess the farm’s financial position and persuade dissenting partners to agree to the restructuring plan.
- Managed the sale of a 25-acre plot of land within a 3–6 month timeframe to raise further funds.
- Increased alternative income streams, including new rental and storage opportunities and the construction of a new barn to optimise the site’s use.
- Overcame delays caused by a positive TB test that temporarily impacted livestock sales and feed costs.
- Introduced a new funding partner, supporting long-term financial stability and refinancing.
Results
- Bank repaid in full, protecting the lender’s position.
- Improved cash flow through cessation of the loss-making dairy business.
- Asset sales completed, generating strong recovery values and enabling the farm to focus on its core operations.
- Reduced partner conflict and provided a clear pathway for succession planning.
- Stabilised the business and laid the foundation for sustainable future trading under a new funding structure.
