case study - turnround practice

Drinks distributor

Stakeholder: lender and shareholders.

Business: the distribution of wines, beers, spirits & soft drinks. Turnover - £5m.

Objective: to reverse the trend of deteriorating sales and to create a business which is fundable and self sustaining.

Process: the initial priority was to create strong financial controls for cash, credit and inventory. The second priority was to refocus and rejuvenate the sales effort and to explore opportunities for new income streams. The third priority was to establish a sound plan for the growth of the business, focussing all efforts on specific and agreed target markets.

Outcome: the long standing fixed overdraft facility has been replaced by flexible invoice discounting and the account has been returned by the bank's business recovery team to the local business region.