Financial Advisory
Opusllp
Full Credential Description
The case study focuses on a road haulage business facing significant financial distress due to small trading losses that were eroding its balance sheet, compounded by an immediate threat from unpaid tax bills exceeding £100,000. Nine months prior to Opuss involvement, an Independent Insolvency Review commissioned by the companys bank deemed the business unviable, suggesting no recovery was possible. This conclusion was contested by Opus, which identified the companys unencumbered freehold as a valuable asset that could be leveraged to negotiate new funding arrangements, alleviating immediate cash flow pressures and relieving the strain from the original bank. Despite the initial relief, the underlying trading issues remained unaddressed, leading the owners to consult two insolvency firms that both recommended entering Administration. However, Opus proposed an alternative strategy, suggesting that the business could attract interest as a going concern for competitors looking to expand through acquisition. The owners accepted this approach, and Opus initiated a consensual sale process outside of formal insolvency procedures. A teaser document was circulated, generating interest from ten potential purchasers, and within two months, a share sale was successfully concluded with a larger haulage company capable of supporting the increased working capital needs. The outcome of Opuss intervention was highly favorable: the business was saved, all creditors were paid in full, and the owners received a significant payment for their shares. Additionally, the owners were released from their personal guarantees to the funders and retained on a short-term consultancy basis. The existing invoice discounter continued to provide necessary facilities. This case illustrates the effectiveness of utilizing restructuring and MA expertise to navigate financial challenges, ultimately achieving a far superior outcome than the Administration route recommended by the initial insolvency firms.