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 joined the board of Academia late in 2012 as an advisor and Part Time FD. David left the board in September 2017 after helping us recruit a full time FD in March 2017.
In almost five years David got involved in all major discussions and decisions. He played a key role in upgrading the financial reporting, both quality and speed of reporting improved significantly versus the period before David arrived. He coached and strengthened the finance team, helped us recruit a new controller, covered for this controller whilst she was on maternity leave and provided practical support to the management accountant amongst others. David played an important role in the acquisition of Charterhouse Muller Limited, which has proved to be an excellent investment for Academia. David also helped us to withdraw from several other less attractive investments. He helped us broker a friendly Exit with a significant shareholder.
Mike Bacon
MD of Academia Limited