INTERNATIONAL OIL SERVICES

Business Rescue

Due Diligence of the management, business, and operations.

International oil sector services company operating in UK, Europe, West Africa, Far East, and South America. GBP50m sales. GBP11m debt.

I was instructed jointly by a major UK clearing bank & the company to carry out an independent investigation and to provide recommendations concerning the business and operations. An international venture capital house had an equity investment in excess of GBP10m. The company was loss-making with an eroding capital position. The business was split into three distinct portfolios and had been struggling with a regional decline in oil field activity affected by oil price. The company strategy was to diversify its portfolio to take advantage of skill transfer capability and competencies to grow into new business sector markets. Executive management were found to be complacent about the debt burden and the company was ignoring opportunities to redirect investment into already established success streams. The Board consisted of the six year old MBO team with two Directors appointed by the VC. The company employed more than two hundred personnel directly, with several hundred personnel being charged out on an agency basis.

Following my investigation and my assessment of the business, proposals were made to re-direct investment. The key investors were encouraged to re-structure their lending and equity arrangements with the company, so that trading could continue with adjustments to strategy and key milestones in place. The company has carried out key parts of the actions that I recommended and this produced substantial elements of progress in trading. At the time of the investigation, I recommended that the company and it's backers sought a managed disposal of parts of the business, with a view to limiting the losses. As a direct result of the my intervention, the bank gained leverage with the VC and achieved an assurance from them to underwrite the interest value of any new lending. . 

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INTERNATIONAL TEXTILE BRAND

Interim CEO

Business Rescue

Executive Coaching & Mentoring

Critical Negotiation

Due Diligence of the management, business, and operations.

International brand textile company manufacturing high quality cashmere fashion garments and exporting to USA, Japan, and Europe. GBP6m sales. GBP1m debt.

The company was owned by the management and the workforce and directly employed more than 200 persons. Following an introduction from an advisor and an equity holder in the company, I carried out a review of the business and organisation, and then worked closely with management to effect a strategy realignment. The company's Bankers were deeply concerned about levels of borrowing and the high level of losses being incurred. I worked with senior management to drive down the inventory of raw materials and finished goods, implementing key production changes, boosting product marketing and sales, and rebuilding confidence with the Bank.

At the time of my intervention the company was in the care of the credit risk department of an international Bank. It required major problem solving. The business rescue resulted in a successful correction of strategic focus for the company with a direct bottom line enhancement due to accelerated sales and margin efficiencies. I advised the company on Investor and Bank relationship management and successfully supported its negotiations with the Bank. The company has embraced my change management recommendations and with interim leadership the business has turned around and is out of intensive care. It continues to trade in an uncertain market - with a revitalised approach to its business and organisation.

METAL ENGINEERING

Interim CEO

Business Rescue

Change Management

Motivating and Influencing

Executive Coaching & Mentoring

Due Diligence of the management, business, and operations.

UK sheet metal engineering manufacturer and specialist paint finisher for UK market and export to Northern Europe. GBP2m sales. GBP2m debt. 

I was instructed jointly by a UK clearing Bank and the Company. The Company was an MBO established sixteen years previously and employed approximately fifty persons. It had been making losses for three successive years, and the value in the company had been negative for the same period. I was appointed to review the business and operation, and then retained to carry out an “out of court” Work-Out with the Company. My review focused on intangible value, i.e. earnings and reputation; strategy; core competency (efficiency, technology, marketing); organisational capability (talent, flexibility, accountability); and quality of leadership.

After the review, and after being appointed as the Interim CEO, I conducted a rigorous change programme comprising proposal creation, planning, decision-making, and implementation. Several urgent and critical problems were tackled over a six-week period, including significant annualised cost reductions. Some months later, and after appropriate internal organisation restructuring (managed on site by myself as turnaround director), the company regained motivation as a team and demonstrated a net profit on the month for the first time in more than three and half years. 

On my completion of the rescue assignment, I proposed a financial restructuring to the Bank, with the prospect of a new buyer for the business.

LIGHT ENGINEERING

Interim CEO

Business Rescue

Motivating and Influencing

Executive Coaching & Mentoring

Due Diligence of the management, business, and operations.

Light Engineering Company located in Scotland serving local market. I was introduced to the company by the lead investor, who was alarmed by an early request from management for a second round of funding. The company was subject to an MBO in 2002, since when it had been consistently missing key performance targets, with unanticipated losses accruing on a monthly basis. Although there were no specific areas where costs could be drastically cut, the organisation did need to be overhauled from a leadership and cultural perspective.

Following my initial appraisal, I led a change management initiative using the my Work-Out method. The company was motivated to agree new targets in order to achieve break even by the end of 2003 (achieved) I was invited to extend my involvement with the Company as Chairman going forward. The latter was inspired especially following my work as an executive coach to the board of directors. All of my work received a high level of co-operation from the management and the full support and backing of the lead equity investor.

QUALITY INSPECTION SERVICES

Due Diligence of the management, business, and operations.

Quality inspection services company, operating across the UK with subsidiary operations in Belgium and Holland and experience of operations in South Africa and the Far East. GBP3m sales. GBP0.6m debt.

I was instructed jointly by the company and a major UK clearing bank to carry out a business viability review to include aspects of organisation, management, market, and financial integrity. The assignment was initially construed as an opportunity for the company to engage myself in a quasi management role to assist the immediate rescue and stabilisation of the business.

With my viability assessment completed it was clear to me that the company was so poorly managed that a long-term turnaround appeared extremely unlikely. I therefore expressed the opinion to the Bank and the Company that the directors should be given the opportunity to manage a rescue of the situation on their own abilities and that the Bank should closely review its own position and vulnerability within a five week time period.

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MATERIALS ENGINEERING GLOBAL GROUP

Management Due Diligence

Succession Planning

Executive Coaching & Mentoring

European Engineering Company operating with production sites on five continents.

I was invited by the Directors to assess the leadership potential for each of twenty-seven members of the incumbent senior management. My role involved intensive one on one interviews and discussion of competencies with the individuals concerned. Coaching feedback was made following the utilisation of the MENTOR®leadership assessment instruments and reporting. Subsequently, I was called to make recommendations to the executive board concerning development and succession planning for the senior management.

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ELECTRONICS SUPPLY AND DISTRIBUTION COMPANY

Interim CEO

Critical Negotiation

Restructuring

Business Review including Strategy and Operations

Second generation family owned business with creditable record of supply and service to regional business customers.

Holding considerable value in its underperforming commercial property assets, the business itself was critically underperforming with a strategy that was lacking vigour and commitment. Having been introduced to the owners by their Bank, I was appointed by the Company to firstly evaluate the potential of the business, and subsequently over several weeks, to support the successful negotiation and sale of the commercial assets and the viable part of the established business.

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COMPONENTS MANUFACTURER AEROSPACE

Due Diligence of the management, business, and operations.

Strategic manufacturer and supplier of quality critical components and assemblies to the aerospace industry.

Being instructed by the senior equity partners of this management led enterprise, I made an investigation of the business in order to establish whether or not a further round of equity and debt funding would be viable. The funding was critical to the survival of the company, with the backdrop being that their biggest customer was threatening to pull out of its contracts due to problems with manufacturing quality. Significantly, I found that management processes were poor and inadequate and I recommended the appointment of a new Chairman of the Board to steer the management to achieve proper conduct of the business and its operations. The equity house and the Company accepted my recommendation and the funds were secured with appropriate commitments in place. The customer was also assured with the results of these changes.