We were approached by a private equity fund whose investment in a mixed builders’ merchant was not delivering the expected returns post-acquisition.
Solution delivered:
We initially met with both the fund and the portfolio business management team to understand the current financial position, as well as to understand the existing business processes and the challenges the team faced to return the business to profitability.
Based on these initial meetings, a discovery session was undertaken to look at the four elements of the business: its people, its customers and growth drivers, its operations, and its financial position. From this, a clear set of workstreams were identified in each area to put in place scalable foundations and provide both the team and the private equity fund with transparency around daily KPIs and targets against which to measure.
Working alongside the team, each of the workstreams were delivered ‘on site’, allowing an engaged and collaborative process to exist, where the team were supported to help themselves through implementing the processes that were being put in place, and equally importantly, understanding why.
Key to all the workstreams was a customer-centric sales approach, asking customers what they needed and delivering a solution ‘on time, and in full’ to help them achieve that.
Results achieved:
Following their introduction, the workstreams delivered daily increases in LfL sales month on month, with loss-making business units being evaluated and, where relevant, closed. Clear, demonstratable month-on-month progress towards profitability with both margin and EBITDA improvement were also evidenced.
If you would like to talk to us, informally and in confidence, to understand how we can help you and develop your business, please contact info@moorgatemanagement.com or call Chris Maityard on 07767 291379.