Buyout
A buy out is and investment transaction where a whole company or a small part of a company is bought. A firm will buy another company to take control of it. If the company is public the buyout if often called going private transaction.
A common type of buyout is a management buyout which is a form of acquisition where a company's existing managers acquire a large part or all of the company.
Advantages:
The advantage of a buyout is that a firm can buy an already established company with everything already set up. There is massive growth. For example LTSB doubled in size by buying out HBOS. It now owns 3rd of mortgages in the UK. Big industry profits. Firms can also increase on an international scale.
Disadvantage:
There will be massive initial cost. Bad cash flow and a big hit on gearing and liquidity ratios. There can also be a problem with staff. They will be overstaffed. For example LTSB will have too many staff because they will now have two branches on every high street, and they will only need one. This will mean that some of the staff will be left redundant. So they will be a lot of costs in this matter. There could also be a lot of Bad public relations if the press got involved.
I would advise someone who want to start up a clothes shop to start as a sole trader or partnership. This is because it is a cheap and easy way to set up because all that will be needed is venue and stock.
Part b – Business plans (P1)
In this task I am going to write a chapter outlining what a business plan is. This will include.
- What a business plan is inc contents
- The importance of profit and how to calculate profit margin and how to improve it
- Financial planning inc cash flow forecasting, the need for capital
- What a PEST analysis is and how to create one
- The effect of seasonal trends – impact on cash flow
A business plan is a formal statement that describes an organization’s current status and plans for several years. It will show a set of business goals, the reasons why they are believed attainable and the plan for reaching those goals. It generally maps the financial, operations, marketing and organizational strategies that will enable the organization to achieve its goals.
Profit is important because it can be used to buy more stock improve technology and expand. To help a business understand how and why it earned the profit it did, it can examine its profit and loss account more closely. This will show managers and investors what type of costs the business has had to pay and how much gross and net profit left were from the sales turnover. A profit margin expresses the level of profit as a proportion of the original sales turnover.
The higher a profit margin the better, because this would show that a bigger proportion of sales turnover is being made as profit and less is being paid out as costs.
The gross profit margin shows what proportion of turnover is left after the direct costs of production have been paid. Although higher profit margins are better, the main determinant on gross profit margin will be the type of industry that the business operates in. In some industries such as food retailing, the costs of buying stocks are high so gross profit margins are typically low. In other industries such as air travel, the cost of taking each passenger on each flight is only a very small proportion of the ticket price.
Gross profit margin is calculated as:
Gross profit / Sales Turnover X 100 = % Gross profit margin
The net profit margin shows what proportion of the turnover are left after all costs, including overheads have been deducted. The net profit margin is mostly used for internal comparison. It is difficult to accurately compare the net profit ratio for different entities. Individual businesses' operating and financing arrangements vary so much that different entities are bound to have different levels of expenditure, so that comparison of one with another can have little meaning. A low profit margin indicates a low margin of safety: higher risk that a decline in sales will erase profits and result in a net loss.
Net profit margin is calculated as:
Net profit / sales turnover x 100 = % Net profit margin
Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the and have been set. The describes each of the activities, resources, equipment and materials that are needed to achieve these objectives, as well as the timeframes involved.
In , a financial plan can refer to the three primary (balance sheet, income statement, and ) created within a . Financial forecast or financial plan can also refer to an annual projection of income and expenses for a , division or department. A financial plan can also be an estimation of cash needs and a decision on how to raise the cash, such as through borrowing or issuing additional shares in a company.
Cash flow forecasting is also part of business planning. This will enable them to plan out when costs will arise over the next year and also what the company’s revenue will be. For a new firm like yours, you might do this based on the market research that you have conducted prior to starting in business. Or for and established firm, their forecast revenue might be based on what has happened to them in the previous years.
These are the main parts of a cash flow forecast.
Receipts: This will be an estimate of the predicted sales revenue for each month. This is found by multiplying the amount the firm thinks it will sell by the price they charge.
Payments: This section will detail the payments that the firm expects to have to make during the year. This will be added together to give a 'Total Payments' box for each month.
Net Cash Flow: This will show the difference between the total payments and the receipts. For example, if in January a firm expects to receive £500 in revenue but will expect its total payments to be £650, it will have a net cash flow of -£150. This can either be put into the box as a minus number or is sometimes put in brackets (£150) to show that it is a negative figure.
Opening Balance: This shows the money that a firm has carried over from a previous month. For example, in the case above, the firm would have to show that it had a negative cash flow of -£150 carried over from January in the box for 'opening balance' for February.
Closing Balance: This is the difference between the net cash flow figure and the opening balance.
In a business capital refers to the financial wealth of a business, whether it is to start or maintain a business. This is very important for a business. It is used to pay the fixed, variable and semi variable cost.
Pest analysis stands for Political, economical, social, and technological. The pest analysis is concerned about the environmental influences of a business.
Political factors include government regulations and legal issues, which will define the formal and informal rules that a business must follow. This includes:
Tax policy
Employment laws
Environmental regulations
Political Stability
Economic factors affect the purchasing power of potential customers and the firm’s cost of capital.
Economic growth
Exchange rate
Inflation rate
Interest rate
Social factors include the demographic and culture aspects of the external environment. This affects customer needs and could affect the market.
Population growth rate
Career attitudes
Emphasis on safety
Health consciousness
Technological factors can reduce barrier levels and reduce minimum efficient production levels and influence out sourcing decisions. Some of the technological factors include:
R&D Activity
Automation
Rate of technological change
Different seasons will have an effect on the cash flow of a clothes shop. This is because a business like a clothes shop may not be able to meet the demand of the customers because it has stock from previous seasons.
Task c – Sources of advice (P1)
In this task I am going to outline the sources of advice available to start up a business and outline what they offer.
Business link – www.businesslink.gov.uk
Institute of directors- www.iod.com
HM Revenue & Customs-
Small Business UK – www.smallbusiness.co.uk
Task d – Sources of initial finance (P2)
In task d I am going to outline the various sources of finance available to a new business. The business that I am going to choose is a clothes shop
Own Savings: Own savings is the personal money of the director or chief executive who will start the business. This source of finance is usually a low amount. Own savings is rarely used in big businesses. It is more common in sole traders and partnerships where the people running the business are liable for any of the businesses debts. The disadvantage to this is that there might not be a lot of savings to support the business if it is needed.
Retained Profit: This is money that a business makes from sales and keeps within the business, and does give out to shareholders as dividends. The retained profit can then be used as source of finance within the business to help with buying new machinery, vehicles, and computers and so on or developing the business in any other way. Retained profits are also kept if the owners think that they may have difficulties in the future so they save them for an important time. The disadvantage to this is that there might not be a lot of savings to support the business if it is needed.
Lottery winnings: A lottery is a form of , which involves the drawing of lots for a prize. Lottery winnings generally come in a large some. So this will be a very good source of finance because it will be able to pay for all the main finances just because of its size. Such as long-term liabilities. The disadvantage to this is that there might not be a lot of savings to support the business if it is needed.
Gifts from friends & relatives: These incentives are usually unexpected and cannot really be used as a main source of finance for a business. But will just generally be saved. The disadvantage to this is that there might not be a lot of savings to support the business if it is needed.
Bank Loans: A loan is when a bank lends customer money that needs to be paid back within a fixed period of time. Interest rates vary depending on the sum of money taken out and the time taken to pay it back.
Bank loans are a common source of finance within a business. They are usually used in the initial start up process of a business, and I believe it will be a good way to start up the clothes shop. The disadvantage to this is that there might not be a lot of savings to support the business if it is needed. In addition the interest that will need to be paid back will also be a disadvantage.
Overdrafts facilities: An overdraft occurs when withdrawals from a bank account exceed the available balance which gives the account a negative balance
Many companies have the need for external finance but not necessarily on a long-term basis. A company might have small cash flow problems from time to time but such problems don't call for the need for a formal long-term loan. Under these circumstances, a company will often go to its bank and arrange an overdraft. Bank overdrafts are given on current accounts and the good point is that the interest payable on them is calculated on a daily basis. So if the company borrows only a small amount, it only pays a little bit of interest. The disadvantage to this is that there might not be a lot of savings to support the business if it is needed.
Business credit card: A credit card allows customers to purchase goods on credit. This means that the customer will not have to pay for the good at the time of the transaction
A business credit card has the same principals as a regular credit card but just on a much larger scale. The business card from Barclays bank is designed for large businesses. Most suited to purchasing departments for increasing the effectiveness of low value, high volume procurement processes, and for other staff in the organisation authorised to make payments for general consumables. The Barclaycard Business Purchasing card account is designed for organisations with an annual sales turnover of more than £10 million who are looking to streamline their VAT processing and apply the power of detailed management information feeds.
The advantage with a business credit card is that a business such as the clothes shop can buy things at times when they may not have the money. The disadvantage is that it will have to be paid back with interest.
It will not be suitable for a small business like a clothes shop.
Second Mortgages: A second mortgage typically refers to a (or ) that is subordinate to another loan against the same property. A business will use a second mortgage to buy more property or land. A business can ask to change their loan back to the original amount if they would like some extra money. For example if a business has paid £50000 of a mortgage they can ask to borrow money up to £50000 and return the mortgage back to its original level or the extended level. This is a source of finance.
The advantage is that instead of raising funds by selling a share in the or the business to an , you retain complete ownership. The is only entitled to an interest return on its mortgage, not a percentage of ownership that an investor would expect. Also they can only exercise the right if you default on payment. You retain all the benefits of ownership in an asset that has the potential to increase in value.
payments on your mortgage are deductible and are made with pre-tax money.
A mortgage gives you access to capital that you would not normally have access to with minimal up-front payments and the flexibility to design a plan that suits your needs. In addition Mortgage schedules are pre-set, making cash management more predictable.
The disadvantages are that the nature of a mortgage requires you to pledge the purchased property to the lender. If you default on the mortgage, the is able to foreclose the property and sell it to repay the outstanding money owed to the lender. Make sure when the mortgage is repaid; the lender is obligated to release the mortgage and is required to make available any government files acknowledging this release.
Second mortgage will only be necessary to the clothes shop if they wish to buy more land.
Leasing: is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments. The lessee is the receiver of the services or the assets under the lease contract and the lessor is the owner of the assets. The relationship between the tenant and the landlord is called a tenancy, and can be for a fixed or an indefinite period of time (called the of the lease). The for the lease is called . The disadvantage of leasing is that a business such as the clothes shop will not have full control over the equipment or facility they are using this is simply because they are borrowing it. The advantage is that if a business would like to use equipment or a facility for a short term period they can just simply rent it for the short time period. This will not be suitable for a clothes shop because they will need their equipment and faciility for long term periods.
Venture Capital: provides long-term, committed share capital, to help unquoted companies grow and succeed. If an entrepreneur is looking to start-up, expand, buy-into a business, buy-out a business in which he works, turnaround or revitalise a company, venture capital could help do this. Obtaining venture capital is substantially different from raising debt or a loan from a lender. Lenders have a legal right to interest on a loan and repayment of the capital, irrespective of the success or failure of a business. Venture capital is invested in exchange for an equity stake in the business. As a shareholder, the venture capitalist's return is dependent on the growth and profitability of the business. This return is generally earned when the venture capitalist "exits" by selling its shareholding when the business is sold to another owner. The advantages of securing a VC are that they can provide large sums of equity finance and may bring a wealth of expertise to your business. Also, if you successfully attract a VC to your business, you're likely to find it easier to secure further funding from other sources. The disadvantage is that securing a deal with a VC can be a long and complex process. You'll be required to draw up a detailed business plan, including financial projections for which you're likely to need professional help. Support from your local Business Link may be available for this. Also, if you get through to the deal negotiation stage, you'll have to pay legal and accounting fees, whether or not you're successful in securing funds. It will not be suitable for a clothes shop because it will not be big enough for people to invest in to gain ownership.
I will now outline what cash flow services are available.
Factoring Invoices: are able to help business or companies that are struggling to pay their debtors. They will help by paying off the debt for the company that is struggling to pay. This will then allow the struggling business to pay the factoring invoice at a rate that is comfortable for the business. Most creditor business will accept these offers because they are better off getting a large percentage than going to court because they may still not even get the money. This will only be suitable for the clothes shop if they are in the position where they are struggling to pay a debt
Overdraft facilities: will help businesses when they miss calculations by small margins and spend more than planned. So if they are off by say £100 they may have an overdraft facility for up to £500, so this will give them a bit of leeway instead of borrowing loans on small amounts of money. An overdraft is there when you need it, and costs nothing (apart from possibly a small fee) when you do not. It allows you to make essential payments whilst chasing up your own payments, and helps to maintain cash flow. You only need to borrow what you need at the time. Overdrafts are easy and quick to arrange, providing a good cash flow backup with the minimum of fuss.
Leasing arrangements for property, equipment, computers, and vehicles: Leasing arrangements will enable business to hire equipment or even a facility for a short term period. This will be very helpful for a business because they will only have spent money for the time they use it. This will be a big boost for companies that will find it hard to generate money for things like this. So it will help their cash flow because they are more fluent in generating money for things they need because they will only have to pay for it on a tailored basis for time it is needed.
Trade finance/credit: This is an agreement for between a business and supplier. It will enable the buyer to have some leeway on purchasing goods. For example 30 days to pay off goods. This will help a business like the clothes shop with its cash flow because it gives the business lots of time to generate cash to pay off the good, while they are already using the purchased good.
Export Finance: This is an insurance scheme for business exporting goods. It allows the exporter some compensation just in case the business that the company is exporting to falls into liquidation. So they will still receive the money. This will help the business with cash flow because they will still be receiving the expected money for the good.
Bank guidelines for investing in a business
Before a business can invest in a company or business it most know if it is worth the risk. So in order to do this a bank will have a good look at the business financial account and see if they will be profitable at the end of the year. If the business is not profitable the bank will not invest in the business. But if it is profitable the bank will consider investing in the business.
Task 2
Part a – Advice on expansion (P3)
In this task I am going to explain the aspects of advice on expansion clothes shop wishing to expand.
There are several ways a business can expand. The first way is to just simply open another location. It is not always the best way to expand but it is very common in small business. Physical expansion isn’t always the best answer for growth in a business, unless there has been some hard research and planning involved. But if you feel that opening another location will be suited for your business, you must make sure you maintain a bottom line profit and that steady growth has been shown over the years. Look at the trends, both economic and consumer, for indications on your company's staying power.
Make sure your administrative systems and management team are good because you'll need them to get a new location up and running.
Prepare a complete business plan for a new location.
Offering your business as franchise is a very common way of expanding a business. Offering your business as a franchise is good because it will give you an operating system that will have ownership on the staff that runs the business. Franchising is one of the only means available to access investment capital without the need to give up control in the process. After your brand and formula are carefully designed and properly established, franchisors are able to expand rapidly across countries and continents using the capital and resources of their franchisees, and can earn profits commensurate with their contribution to those societies. Additionally, the franchisor may choose to leverage the franchisee to build a distribution network.
Part B Finance for growth (P4)
Part c – Restructuring (P4)
Restructuring a business is a very complicated part in a business or company. Restructuring can be done to:
- To take out shareholders
- To split up the business
- To get a better tax position
Restructuring assets and liabilities is very important if a clothes shop wanted to improve its working capital. Working capital = current assets – current liabilities. In order for the working capital to be kept at a minimum they would want to keep the current liabilities at a minimum, these are things like overdrafts, creditors and bank loans. The clothes shop will want to keep the current assets at a decent level because if it goes to high they may not be able to turn it into cash as efficient as they like. In order for the clothes shop to improve their working capital they will need to make sure that they keep their current assets higher than their current liabilities. In addition the clothes shop will want to keep their fixed assets at a low rate. This can be done by selling off any facilities that are not in use or renting equipment in stead of buying equipment that will only be used for a short period of time.
Market retrenchment refers to a business changing from export markets to domestic markets or vice versa. The clothes shop will have to consider restructing the business because they would obviously have staff overseas and will have to cut them off if they no longer want to export overseas. They may even have to cut off share holders as well in the process. The advantage of selling in a domestic market is that the business will have a better knowledge of customers needs.
The an off Matrix is a tool that will help the clothes shop decide their product
and market growth strategy. Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.
The clothes shop can use the above table to come up with different approaches to improve their growth as a business, which will require them to restructure the business. The clothes shop could use an existing product in the same exting market (market penetration) this would be restructing the market mix. They could use an existing product in a new market. (Market development) For example in a new part of the world. Create new products but use them in the same market. (Product development) So the same outlets and strategy will still be required. The last option in the ansoff matrix is to have a new product in a new market (Diversification) which is totally taking the clothes shop to new places because it will be something they have never done before, so lots of restructing will have to be done because they may need new people who are experts in the new idea.
All of the major decisions in the clothes shop will be made in the head office which is centralised. But as the business starts to expand in to more geographical areas the major decisions will have to be more decentralised. So each region will make their own decisions and be accountable for their profit and loss.
Downsizing the operations refers to a business such as a clothes shop cutting down on its expenditure. This can be done in many ways, such as firing staff or stop selling overseas and just focus on selling domestically and stopping a production line.
Businesses in the public sector are businesses that are owned by the government, such as the London buses. Businesses in the private sector are businesses that are privately owned by entrepreneurs such as the National rail. Public to private buybacks refers to when a business that is in the public sector buys out a business in the private sector also know as nationalisation. This is similar to what president Obama is doing to the banks across America, he is using 800 billion dollars to buy out all the banks and start the lending between them. This is used to cure the credit crunch. He will then eventually sell all the banks back to private ownership.
Management buyout is commonly used in business restructuring. It is the purchase of a business by its existing management team. Management buyouts usually occur because of corporate restructuring activity, leading parent company to want to divest a subsidiary. Management buyouts are the most common method of privatisation. A clothes shop will want to do a management buyout because they will be able to acquire additional skills and competencies, secure a source of supply or distribution and acquire new technologies. In addition they will be able to speed up market entry and get assets cheaply.
Recent research shows the importance of innovative behaviour, and new product development, which may not otherwise have happened
Significantly better performance over 3-5 years than comparable non-buy-outs.
Management buyouts are the cheapest disposal option for the existing owner of the clothes shop. However there is a risk in management buyouts because the new management team may not have the skills to make everything function.
If a shop like the clothes shop wants to free up capital they can sell shares in the business, but they can only sell up to 49% of the shares because they still want to have full control over the business. If this is done they will raise money and in exchange for that they will have to give part ownership to the new shareholders.
Part d - Case study (M2, D1)
The business that I will use as a case study will be British Airways. British Airways plc is the national airline and of the United Kingdom and one of the largest airlines in Europe. Its main are and . British Airways is a founding member of the Oneworld alliance. The British Airways Group was formed on 1 September 1974 consisting of and . These two companies were dissolved on 31 March 1974 to form British Airways (BA). The company was privatized in February 1987. British Airways have recently expanded. In January 2008 BA unveiled its new subsidiary OpenSkies which takes advantage of the liberalization of transatlantic traffic rights, and flies non-stop between major European cities and the United States On 2nd July 2008 British Airways announced that it had agreed to buy French airline for £54 million. The deal will result in the full integration of L'Avion with OpenSkies by early 2009 on 30 July 2008, British Airways and announced a merger plan that would result in the two airlines joining forces in an all-stock transaction. The two airlines would retain their separate brands similar to KLM and Air France in their merger agreement later, in the beginning of August, was also added to this agreement though the deal did not have AA being merged into the BA and Iberia entity, it allows the two carriers to fix fares, routes and schedules together
Ratio Analysis
Gross profit and Net profit margins
I will not be able to do the gross profit margin because since British Airways is a commercial airline business they do not hold stock, so therefore it will not be possible to find out the gross profit.
Net profit / sales turnover x 100 = % Net profit margin
For British Airways in 2007 this was:
304000000/ 8492000000 x 100 = 3.57
=3% Net profit margin
. A figure of 3 per cent shows that out of every £1 sales revenue, 3p is left as net profit. But once again, this figure needs to be compared with competitors and with previous years. A higher net profit margin would be preferable.
Operating profit margin
Operating profit / Turnover x 100 = % Operating profit margin
For British Airways in 2007 this was:
602000000 / 8492000000 x 100 = 7.08%
=7%
British Airways has an operating margin of 7%; this means that £0.7 (before interest and taxes) for every pound of sales.
Operating margin is a measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt. If a company's margin is increasing, it is earning more per pound of sales. The higher the margin, the better.
Gearing Ratio
Gearing show the proportion of a business’s funds that have come from long term borrowing rather than from share capital and reserves. This then indicates how risky investment in this business will be, and the higher the level of debt the greater the risk. A business that has borrowed a high proportion of its funds is more at risk from higher interest rates, as it will be more affected by higher interest payments. In addition, if sales are falling – due to a recession or increased competition – a firm will find it very difficult to make a profit given that interest payments must be maintained. So the risk of insolvency is much greater where gearing is high.
Gearing ratio is calculated as:
Long term liabilities / Capital employed x 100 = % Gearing
4646000000 / 11123000000 x 100 = 41.7
=41%
Return on capital employed
The most useful indicator of how well a British Airways has performed is the return on capital employed (ROCE). This ratio compares the profit made in a year to the size of the business, as shown by the value of the funds invested funds and the significance of the level of profit relative to the size of the business.
ROCE is calculated as: (2008)
Operating profit / Capital employed x 100 = % ROCE
875000000 / 11123000000 x 100 = 7.8
= 8%
A figure of 8 per cent means that for every £1 of funds used by carphone warehouse, 8p profit has been earned. Some of this will have to be paid in tax, some may be paid in dividends to shareholders and some may be retained. This indicates a return of funds borrowed or invested, so the higher the ROCE the better.
For me to know if 8% indicates a good performance I will compare it to the previous year’s ROCE to see if it has increased.
ROCE is calculated as: (2007)
Operating profit / Capital employed x 100 = % ROCE
602000000 / 11384000000 x 100 = 5.2
=5%
After comparing the ROCE of 2008 to the ROCE of 2007 I can see that the ROCE of 2008 indicates a good performance because the previous year had a lower ROCE.
BP-11
BP-11 is the new business plan that British airways have come with to set the direction of the business in the next three years.
Short Term
- Improving the service that British Airways gives to their customers is central to their success as a business. Last year BA introduced the idea of doing the basics better, and adding brilliance where it really matters to their customers. Terminal 5 is central to this, but their investment will not be limited to Terminal 5. BA is also improving the service they offer their premium customers. The new Club World product that began its roll out in 2007 saw the start of this. Initial feedback from customers has been very positive. They will continue to invest at this level during the life of BP11 to complete the roll out of the Club World product across the remainder of the long haul fleet. In 2009 British Airways will introduce a new First cabin. In addition, they will be investing in their terminal at New York JFK and in a number of their lounges worldwide, complementing their new Galleries lounge in Terminal 5.
Medium Term
- British Airways will take delivery of their first new longhaul aircraft worth more than £4 billion since 2001.These will both replace existing fleet and expand their overall longhaul capacity. These aircraft are quieter, greener and more efficient and will establish a new gold standard for environmental performance. To afford this investment in new aircraft and services, BA needs to control their costs. Faced with rising fuel costs and an economic slowdown in some of their key markets, this will be more important than ever before. BA expects to launch a competition for additional longhaul aircraft, due for delivery in the second half of the decade.
- Over the course of BP11, British Airways will launch services to 13 new destinations from Gatwick. BA has purchased two new Airbus A318s to offer business class-only flights between London City airport and New York. Finally, through our new subsidiary OpenSkies, due to launch in June of this year, they will fly directly between continental Europe and the US.
Long Term
- BP11 establishes corporate responsibility as a new priority for the business. They will be doing even more to address their environmental impact. This will include cutting their carbon emissions further; reducing and recycling waste; minimising our contribution to air and noise pollution; and continuing to invest in their community relations programme. Our partnership in the London 2012 Olympic and Paralympics Games will be the focus for some of their community activities, including community work in East London and the launch of a travel bursary scheme for young athletes. British Airways are putting corporate responsibility centre stage because they believe it matters and will help them stand out from their competitors. BA intends to lead their industry in corporate responsibility.
- This strategy for expansion is my own thought of what British Airways can do to improve. It is not part of BP11. I think that British Airways should aim to fly to every country in the world by 2030. This will be a very tough challenge due to the funding and lack of vacant flight routes. BA can do this by merging with other airlines companies which will enable them to use flight routes which they have no access to. With the new Airbus A380 in action, BA should consider investing in the planes because they are very efficient because they can take twice the amount of the Boeing 747 in a single flight.
Miss can you give me more information to put in the sources of initial finance because I don’t think it is enough.
Not sure if I have done this one good!!