Professional Services
Professional Services Firm
Full Credential Description
The case study focuses on a group of haulage companies facing significant financial difficulties, with an annual turnover of approximately £20 million and around 150 employees. The core business involved the time-critical delivery of weekly and monthly periodicals. The financial distress was primarily due to a lack of cash flow, which stemmed from a recent investment in a non-core subsidiary.
In response to this crisis, a team of specialists was engaged to provide tailored solutions. They implemented immediate operational controls and restructured the workforce to stabilize the business while seeking a suitable buyer. A critical step involved negotiating with the group’s largest debtor, which resulted in an agreement that allowed the business to continue trading and manage debt repayments effectively. The business was subsequently advertised for sale, attracting multiple interested parties and leading to two formal offers.
The outcome of these efforts was successful; a suitable buyer was identified, and the largest customer of the group expressed satisfaction with the potential buyer. This strategic maneuvering ensured that the bank was paid in full, preserved jobs for the staff, and allowed for dividends to be paid to secured creditors in several instances. The case exemplifies effective crisis management and turnaround strategies in the haulage industry.