case study - turnround practice

Publicly quoted engineering group

Stakeholder: group parent company.

Business: a group of 35 trading subsidiaries engaged in power and process engineering, construction, materials handling and military facilities management.

Objective: to realise value from a 25% shareholding in an AIM listed company.

Process: the board were marshalled into agreeing a new plan to dispose of the failing collection of industrial companies and to use the proceeds to invest in additional consumable durable products. The assignment also involved replacing both Chairman and CFO.

Outcome: the old industrial businesses were sold and the proceeds invested in high profile consumable durable brands. The share price rose accordingly and the client was able to sell its entire stake through direct market sales without disruption to the price.