Delivering value for our clients through successful operational turnarounds

Logistics - Crisis management & preparation for sale or administration

• UK division of a global logistics group (mainly traditional warehousing, road & rail transport to multiple retailers) with £150m sales & NAV of €74.1m. The brief to PILOTpartners' interim CEO was to 'tidy up' a terminally failing entity with a view to a successful administration or quick sale.
• Ultimately achieved a 'soft landing' administration, with £100m greater creditor value compared to a forced sale.
• Enabled successful completion of four parallel sales processes; two via a pre-pack.
• Delivered full recovery to secured creditors and £20m funds available for preferred & unsecured creditors.
• Secured 2,000 jobs via TUPE to the new business owners.
• Managed smooth handover to administrator in waiting.

Specialist engineering group – Accelerated Sale

• MBO out of administration. The £15m company supplies capital equipment to the global chemical and pharmaceutical sectors. There had been two working capital cash calls in quick succession that triggered an external business evaluation.
• Interim CRO appointed through James Wheeler at PILOTpartners, with an initial brief from private equity investor to provide a rapid diagnosis for a recovery plan with a view to an accelerated sale of the business and to replace an underperforming management team.
• Having completed this review AT closed the year end one month later with a subsequent EBIT swing of £2m and an unforecast loss of £1m.
• Tight cash management controls were implemented and the business was restructured including the disposal of two out of the three manufacturing sites.
• A new board comprising best performing second tier team was appointed. CRO became executive Chairman.
• Gross profit margins were significantly improved, the breakeven point was reduced by 40% and a year later, with flat revenues, it exceeded its positive EBITDA target with a profit swing of £1.3m. The business was then sold for a 2.5 x IRR.

Foods ingredients business – Central Europe

Cross border turnaround & restructuring programme

• PILOTpartners' interim executive hired to cover for incumbent following serious illness.
• Є200m+ t/o group required financial restructuring of its business units in Central Europe following significant market downturn.
• Negotiated new bank facilities (Є36m) and stakeholder equity (Є12m).
• Managed operational turnaround of the group, PBIT Є13.5m ahead of plan.
• Czech Republic business cash burn reduced from Є1.5m/month to zero.
• Initiated several legal actions against fraudulent & corrupt activity, valued c.Є100m.
• Strengthened senior management teams in each country.
• Secured clean, accurate & timely financial reporting to IFRS requirements.
• Є13m 'old debt' court case resolved out of court for Є2m.
• a year later, with flat revenues, it exceeded its positive EBITDA target with a profit swing of £1.3m. The business was then sold for a 2.5 x IRR.

Food Manufacturer – Business assessment project

• Interim CRO appointed by Private Equity owner to asses this £30m business and its management in a refinanced company with fast declining margins, an expectation of impending covenant breaches and with a likely sale in view.
• The CRO reported to the investor on:
  • Assessment of management team
  • Assessment of business viability and potential
  • Validation of the sale decision
  • Detailed contingency plan to assume control of business in the event of abortive sale:
    • Stakeholder engagement plan
    • Customer engagement
    • Cost reduction and rationalisation
    • Supplier review and rationalisation
    • Management changes and interim contingencies
• He then worked with the management team in:
  • Assessment of product and customer viability
  • Assessment of cash projections and risk
  • Review and validation of profit improvement plan
  • Bank presentations and forecasts