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The company was a specialist consultancy which had invested
significant resources into acquiring a pivotal contract with a high
profile public body. An attempted fraud on the consultancy resulted in
the loss of the contract with a significant potential impact on the
viability of the business.
Our Associate Director was asked to assist and:
- conducted a quick and dirty financial review so as to fully ascertain the extent of the financial damage.
- persuaded the directors to take advice from an insolvency
practitioner, accompanied them to the meeting and obtained clear
guidance in respect of their legal responsibilities.
- produced realistic budgets and cash flow forecasts and
accompanied the directors to a series of meetings with their bankers,
persuading the banks to provide continued support.
- implemented strict cash flow management procedures, reports and KPI’s.
- focused on cost reduction resulting in a slimmed down operation trading from less prestigious premises.
- guided the directors in their search for additional investors,
attended pre investment meetings and dealt with the due diligence
process.
| Key Results:
- Prevented a crisis from becoming a disaster.
- Secured the immediate financial position and negotiated continued banking support.
- Established processes and procedures that allowed the company
to deal with a rigorous due diligence process, culminating with the
introduction of fresh funds and additional participators.
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