Planning and Executing Exit

Apr 21, 2017

Preparation and Completion of Major Multi-Company Asset Disposal

  • 4-part disposal project
  • 9-figure settlement
  • 2-year project of grooming, systemizing and streamlining, including legal restructuring and asset disposal programme

Following a 2-year strategic programme of business improvement and planning, the multi-divisional group was legally and financially restructured to allow it to be split into attractive bundles for disposal. Achieving a 9-figure sale by private invitation from 4 separate sales processes, the systemization of the business added significant value to the price.

Sale by Private Invitation

  • Groomed for sales at an industry high multiple of EBITDA
  • Multiple parties engaged in acquisition process

Throughout a cash management crisis, a parallel project to groom the business for sale by private invitation was completed, resulting in the company being sold for a high multiple (double the industry expectation) in an 8-figure deal. The company, on sale, had over £1m of cash returned to the investors in addition to the sale price. The sale of the company was managed and completed within 6 months with significant saving in legal and corporate finance fees.

Restructuring for Planned Exit with Efficiency Savings

  • Reduced workforce by 25% (as part of a phased 50% reduction)
  • Outsourced non-essential operations reducing the cost by more than 50%
  • Increased company resilience and cyber security
  • Added £1m to bottom line in less than 6 months

After a strategic review, concluding in a decision-making workshop, the company was assessed to have significant efficiency savings available. A phased transformation programme was commenced resulting in an immediate saving of £1m in costs, with more on-going savings to be achieved whilst increasing the efficiency, effectiveness and customer service. Whilst the initial engagement was to prepare the company for sale, because of immediate savings and staff restructuring, the business owner decided to retain ownership for a longer period.

Closure of Major European Operation

  • Closure of unprofitable production and administration functions in Germany
  • Management of German liquidation and redundancies

After a commercial assessment of the profitability of several overseas sites, the German operation was found to be making significant losses and the decision was made to close it down. This was orchestrated and managed from the UK with regular visits to the site to supervise the consultation, redundancy process and liquidation of the assets.

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