Financial Advisory
Forvismazars
Full Credential Description
The case study focuses on an EdTech company that faced significant challenges due to the impact of COVID-19 on its operations. With an annual income of approximately £1.3 million and around 25 employees, the company specialized in providing digital training, primarily through government-funded apprenticeship education. Following years of growth, the pandemic led to a decline in new learner provision, resulting in creditor pressure and a pressing need for funding. The company found itself over-leveraged and unable to service its existing debt without a substantial restructuring of its financial obligations. To address these issues, the company engaged in an Independent Business Review (IBR) to obtain a professional assessment of its financial situation and to explore options for debt restructuring. The IBR focused on evaluating the companys business model, short and medium-term forecasts, and its capacity to manage current and future debt. The advisory team worked closely with the company to model various debt restructuring strategies and considered the potential for a long-term equity solution. Additionally, they introduced the company to alternative asset-based lending (ABL) providers to help reduce finance costs to a more manageable level. The impact of the IBR was significant. The findings prompted the bank to reconsider the companys application for an additional CBILS facility, ultimately granting £1.25 million. Furthermore, the company secured a new finance provider on more favorable . This restructuring package alleviated creditor pressure, secured the businesss prospects, and allowed the directors to concentrate on increasing learner numbers. The company is now optimistic securing equity investment later in the year, positioning itself for future growth.