Project Pre Pack
- The Business was:
- a UK entity with a large US controlled multinational engineering conglomerate;
- deemed “non core” by global management; and,
- liable for substantial contingent liabilities in respect of guarantees granted to other Group companies.
- The UK Management believed in the products manufactured by the business and believed they had a future.
- Traditional lenders were reluctant to lend owing to the complicated nature of the business, concerns about the wider Group and the potential impact that any failure of the wider Group would have on the Newco.
- Members of our team assisted with the formation of a MBO, and put together a plan that removed the historic liabilities of the business and left a new ‘lean and mean’ manufacturing business.
Project Employment
- The Company provided agency staff to Government bodies and also operated a management training business.
- The business was wholly dependent on contract labour.
- The Company had grown rapidly through acquisition but it had failed to effectively manage its growth and encountered acute working capital problems.
- The Company was desperate for new finance; however, it struggled to provide accurate financial information and this greatly concerned the Company’s existing lenders.
- It was apparent that the Company needed protection from creditors, although given its reliance on contract labour it would not be possible to hold the Company together without staff being paid.
- To avoid a total failure and no return to any class of creditor, it was vital that the business be sold to a new Company quickly.
- Within a 72 hour period encompassing a weekend, we worked with management to perfect and fund their MBO whereby a new management team bought the business and assets of the Company via a pre packaged administration.
- Members of our team continued to provide support to the Company’s management to help ensure the business continued to succeed.