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.
David’s breadth of experience, level head and experience has been invaluable to us over the years. We certainly learned a lot from his approach as David added another, very welcome and objective viewpoint to the management team/board. David’s knowledge didn’t just extend to finances and he would often pitch in with ideas on a whole manner of subjects. His non-executive status and unbiased viewpoints coupled with his knowledge and experience proved always to be extremely useful. David was instrumental in the execution of the exit and we intend to retain his services on the wide variety of business opportunities that lay before us and into the future. I couldn’t recommend David enough!
James Capel
Simply Waste