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Case Study: Private Sector

Turnaround and M&A in the Private Sector

Background

  • Kingsgate were engaged by a listed international technology business which had a subsidiary selling refurbished parts
  • Kingsgate’s expertise was required to lead the financial and operational turnaround of a £50m loss-making supply-chain division with a view to then disposing of the profitable business
  • At the time of our appointment, the division was heavily loss making

Approach and outcome

  • Kingsgate worked with Management to create and successfully deliver a cost reduction programme which improved profit to 4% EBITDA and bottom-line break-even
  • Following the delivery of a sustainable profit-base, we worked alongside Management to initiate and then run a competitive M&A process involving:
    • Marketing the business to various trade buyers
    • Creating a full memorandum of sale
    • Negotiation with trade buyers
  • The disposal of the division was successfully completed in 2013
  • Following this successful result, Kingsgate were re-engaged to lead the financial turnaround of a second division, a £150m business in its own right which sold electronic products in 10 countries across Europe
  • Kingsgate developed and implemented a cost reduction and productivity plan to deliver 5% EBITDA. This project was successfully concluded in 2014