Back to top
European Retail Company [120 sites plus E- Commerce]
Situation and Challenge
- Retail focused PE house looking to understand a recent purchase in depth
- Make clear where value was being created and lost and how the business could respond quickly
- Separate adverse retail trading conditions from underlying operational issues
- Deliver information to allow prioritisation in a distressed situation
- Working with the CEO and Sponsor; revisit the acquisition assumptions and growth plan to revisit how the business vs.market had changed.
- Set out a new 5 year plan enabling decision making and swift response to changing trends
- Making clear where value was being won and lost
- Effect capital re investment [4-6 weeks timetable]- reducing leverage.
- Working across all disciplines, established and communicated the cost and revenue drivers in the business
- Valued the gains and losses the outcome of which was the rescue plan
- Putting these metrics into a model, it enabled the CEO and COO to create scenarios and evaluated alternate strategies, roll out plans and product choices to maximise yield.
- Working with operating partners and consultants specialising in retail to bring together the final plan
- Delivered full, sensitized 5 year plan in 4 weeks working with top 5 audit firm [using UK and Australian resources to have progress 24×7]
- Effected negotiations with banks and recapitalisation
- Delivered a diagnosis to the PE operating partner with suggested solutions
- Made clear the difficulties the business faced and true extent of the value shortfall