Turnaround and M&A

Kelly Jones, Turnaround & Transformation Director (Private Sector). Kelly’s Bio

Background

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.

• 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.

How We Helped

• 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.

Results

• 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.