Case Studies

Penny

Background

Penny was 68 when we first met, her company was haemorrhaging funds, and had no where to turn

Issues

The business was in a poor state, as were her financial affairs, she had family issues, and had lost her trust in professionals

Action

Where did we start, well looked at the company, appraised it, pre packed it, set up a new limited liability partnership, helped her with redesigning her business. In truth stuff she already new, but as it became profitable, kept tax at manageable levels

As that developed we helped put in the next tear of management, and we are now orchestrating her retirement

Agreed a management buy out

In 3 1/2 years, her assets have risen from £300k to nearer £3m, and is now in a position to retire,

Steve

Background

Steve aged 49 wanted to buy his company back from the group he sold it to, four years before

Issues

He believed his company was well placed but had been swamped by excessive management charges. The holding company needed a sale, and there was much bank pressure. The problem was, terms had been agreed to purchase the business, but the precise amount of working capital was uncertain, a few days before exchange, the vendors showed that we were acquiring £600k less assets than we thought, but the price had been agreed. There was much uncertainty in the heads of terms.

Action

This £600k was a nightmare, but if we did not purchase, we were liable for a £150k cancelation payment. We had to go into a conference call to agree and sort. We were the client, the lawyer and me, and against us were the other side, plus two Deloitte's partners. As well as the conference call, we had our own private network going.

Something had to happen, and in order to do this, we had to be a bit extreme, the client was happy to take this role, our solicitor was not happy to do it, but I decided it was the right thing to do. We planned this all before the call, this was my idea. Just before I started I flashed out a message onto our private network, “here goes. I'm about to light the petrol” the conference switched, it became very aggressive and at one stage both Deloitte's partners were shouting at me. I was not really expecting that, but so what. We called time on, as I wanted to check something technically with the company's finance director.

Net result

Steve then went to the owner, and agreed to reduce the amount by £370k, in effect, we had got exactly what we wanted. It was planned out by me, executed by me, we got exactly the result we wanted and the client was delighted. And the other side had no idea it was orchestrated

Joe

Background

Joe is a serial entrepreneur; aged 46 has sold 3 businesses, and has significant assets generating investment income as well as some non exec positions

Issues

After his third sale he wanted to consider his options, and what he wanted to do

Action

He was given an opportunity to firstly be a non exec director, but latterly to buy in. We reviewed the options open to him, to ensure he was getting good value for money. We helped him step back from the acquisition, and rationally and in an organised way, properly look at the options. This involved looking at comparative returns and budgeting the likely profits over the next five years. We also discussed his strategy to purchase, which has so far, gone according or better than planned

Net result

He is very much enjoying his new role, and very pleased with what he has paid

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