Preventing a crisis
Working Capital Training
FD4 was introduced to a client who was looking to acquire a target business that was about to go into administration.
How we helped
The directors had estimated the likely P/L impact and had therefore established a business case to proceed. However, as the business had no FD, the Working Capital requirement had not been analysed and estimated. The initial cash investment required to cover the growth in Working Capital by the new business together with other expenses was 3 times the initial estimate.
Working Capital Analysis
FD4 carried out a detailed analysis of the target to get an estimate of the Working Capital required.
Action Plan
This work also highlighted actions for Commercial staff to take to reduce the working capital requirement significantly.
Training
Key commercial staff were trained and the acquisition went ahead. As a result of the training and specific action steps highlighted by FD4 the working capital required was only 60% of the initial forecast.
Final Integration
The acquisition happened in early summer 2011 and by end of 2011 was fully and successfully integrated into the parent company.
Lasting Benefits
The working capital training, tracking and awareness remains, yielding a continued and permanent benefit to the company.
FD4 Working Capital
Through improved debtor/credit control and stock planning, we can help increase your working capital to allow for expansion of your operation.
I joined FD4 in May 2015, more than 10 years ago, time flies! FD4 has been a great support network, and I've particularly enjoyed the relationships built with long-standing members who've been part of my journey from the start.
It's been great to share successes, navigate challenges together, swap ideas and share knowledge. One of the key benefits has been expanding my personal network through introductions, contributing to over ten years of almost full employment. A portfolio FD career is rewarding, but being supported by a team really does help.
The FD4 offer has improved significantly since 2023, and I would recommend it to anyone considering a portfolio FD career.
Brian Kilcullen
