29 January 2008

Case Study - Project T-rex


  • Earthmoving equipment repair company
  • Annual turnover of $6 million
  • Loss of $300K FY07 (profit of $800K FY06)

Key Issues

  • Succession plan - sale of business required
  • Senior management change did not work
  • Reduction in morale
  • Business is undeperforming but significant profit/cash generation opportunities
  • Considerable thought required on finance structure for the purchaser

4 Phases

  • Financial and operational due diligence
  • Determine appropriate finance facilities
  • Develop turnaround strategy for purchaser
  • Implement & monitor turnaround strategy


  • Debtor book leveraged as part of purchase consideration
  • Debtor finance required as considerable working capital growth forecast as part of successful turnaround strategy - Debtor finance is an important tool in any turnaround
  • Transaction settled and a similar structure will be used for further acquisitions by this client

For further information, visit http://www.vantageperformance.com.au/ or call Vantage Performance on (07)32295750

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