Case Study 1:
Summary:
Changed sales model and established US subsidiary
Sector:
Medical - Orthopaedic Implants
The Problem
A company had developed an orthopaedic implant for a shoulder injury. Although it was probably one of the best products available, its sales were growing slowly. Also, it had to decide whether or not to enter the US market, where it had recently gained FDA approval. Time was the essence as a profitable supply contract for an unrelated product was about to finish and without this, profitability and cash flow would decrease significantly.
Action Taken
Analysis showed that the exclusive UK distributor had been given very modest growth targets on a selling price, which gave them a substantial margin. They were also developing their own non-competing products.
The UK distributor agreement was terminated, a senior sales consultant was hired and independent sales agents appointed with more realistic targets.
By setting to one side an element of the supply contract profits, a US subsidiary was established, a US based Sales VP was recruited to set up state distributors, and a small US implant company was appointed to provide warehousing, delivery, clinical audit trails and accounting.
Outcomes
• Unit sales increased 70% in three years.
• US operations established.
Case Study 3: Change Management
Summary:
Company Turnaround
Sector:
Military
The Problem
A military supplier had seen turnover and staff grow substantially as it became part of major procurement contracts. However, its finances continued to be difficult. Investors had to fund cash shortfalls, and it was unclear if the business would survive.
Action Taken
The lead investor asked for an assessment to see if there was a way forward and report within a fortnight. Recommendations were: cease complicated multi-contractor procurement contracts; reduce the senior management team from four to one; vacate the large office premises; continue to develop a new product to a budget; agree exit contracts for management and premises within a very limited budget; arrange equity participation for the remaining executive, and an investor loan capital facility. The investor agreed to this providing all the conditions were followed through.
Outcomes
• The re-organisation was completed in line with the recommendations and within budget.
• Within three years, the loan capital facility had been repaid.
• New product developed and is generating significant sales
• Major contracts won
• Dividends declared
Case Study 2:
Summary:
Positioning and Profitability
Sector:
Renewable Energy
The Problem
A wind turbine and solar site developer was becoming alarmed when a significant solar site was sold and the proceeds were absorbed by payments with no surplus cash being generated to move forward.
Action Taken
Analysis revealed that the accounts department was competent, but was swamped with work. Increasing development of wind turbine sites, and the need to construct the turbines prior to their sale, absorbed substantial staff time and working capital – with much lower profitability when compared to a solar development.
It was suggested the wind element be realised, which was completed successfully within 6 months.
Outcomes
In less than 2 years the Company's borrowings of £0.5m were repaid and a cash position been generated with significant returns to shareholders
The Accounts department operates effectively, with no more staff.
Its forecasting model has proven to be an excellent tool in forward planning.
Case Study 4
Summary:
Support for Minority Shareholder
Sector:
Real Estate
The Requirement
Client requested advice on offer for minority shareholding
Action Taken
Reviewed company performance, and financial returns to directors and shareholders. Advised this was a minority prejudice, introduced specialist legal counsel and provided a valuation. Advised shareholder throughout dispute.
Outcomes
Significantly improved offer.
Settlement agreed.