Companies are always reviewing their strategic plans, what they are offering and whether it aligns to the market. They also consider influences out of their control and the affect they may have on their aims and aspirations. Then there are times when a culmination of non-favourable events prompts an immediate review of the business and what is required to be addressed to ensure the health of the on-going business.
A company of long standing, manufacturing furniture, with a strong balance sheet, was presented with events that enhanced such a review.
An initial review demonstrated that the cost base had to be addressed along with looking to find new investment, either through the sale of the company to another suitable business in the furniture industry or a suitable private equity investor.
Armstrong Watson was commissioned to look at the various options of reducing the cost base, which included the possibilities of consolidation of the companies operation facilities. Various financial models had been compiled to demonstrate the results of the consolidation in tandem with the revised forecasts income stream.
Another external company was commissioned to compile a sale prospective to find suitable suitors to purchase the business. The work carried out by Armstrong Watson formed the basis of the financials of the memorandum, along with helping to explain details of cash flow, assets, and the formulation of the balance sheet.
The company was eventually sold to a private equity firm and Armstrong Watson was instrumental in assisting the future purchase in formulating the financial models, cash flow analysis and pro forma P & L. It was this work that instrumentally helps to secure the sale. The representatives of Armstrong Watson involved, produced such levels of high quality results and provided invaluable contribution such that the new owners have commissioned further assistance in the post transaction.
This has been an effective transaction made so by having people with the skills in understanding the business and the requirements of the customer. These skills have been evident from the beginning of the process and mention should be given to David Richmond, a partner in the business and Andrew Padgett, a member of the corporate team, who reports to David. Andrew has a good understanding of the requirements to produce financial models with integrity. His knowledge of financials is invaluable but coupled with his knowledge of manufacturing accounting produces quality results enabling more effective management decisions at a high level.
David Richmond has an excellent understanding of business finance reporting and this experience helps to direct others, enabling results within a short time. His knowledge and the ability to understand various situations provide a valuable contribution to any strategic direction particularly in the area of finance.
They are exceptional and a credit to Armstrong Watson a very professional outfit and without doubt their contribution has made the transaction exceedingly cost effective.