Project Staffs

Well established Midlands family business, engaged in civil engineering contracts, with a blue chip customer base, hit an unforeseen cashflow crisis and needed rapid advice.

Summary

Well established Midlands family business, engaged in civil engineering contracts, with a blue chip customer base, hit an unforeseen cashflow crisis and needed rapid advice

Challenges

  • unfavourable changes in customer contract terms
  • a delay in the start of a major contract
  • serious cash issue; no contingency plan in place; left late to seek professional help
  • real lack of understanding as to how this would be perceived by bank
  • management had not anticipated any difficulties in the Bank covering what they saw as a temporary excess; strained relationship ensued 

How we helped

  • obtained rapid understanding of the cashflow, including potential upsides, downside risks
  • reviewed forecasts and provided feedback on longer term viability
  • supported Board with stakeholder management and guided them through the business support banking aspect
  • aided provision of reliable information to the Bank so that the request for support could be considered
  • presented options to management, for a more appropriate forward funding structure

Results

  • Bank satisfied this was a temporary cashflow issue, and supported the increase
  • in addition a Government backed loan was secured
  • agreement reached on a plan to address longer term funding structure, better suited to the evolving business needs

Benefits at a Glance 

  • short terms problem solved
  • longer term plan put in place
  • Banking relationship restored
  • management team strengthened and now better equipped for future challenges
  • business back on track and growing
  • shareholder value preserved

 

Thanks to guests from the Midlands turnaround & restructuring community for lively debate at IFT’s Corporate Partn… https://t.co/Oa1bEfqswq