At Vantage Performance we are uniquely positioned to offer clients the benefits of our extensive crisis management and corporate turnaround expertise along with our business growth strategies which include organic growth strategies as well as merger and acquisition advice.
We work with clients to identify what drives their business, how to achieve above industry benchmarks and more importantly implement strategies that increase the financial performance and value of their business.
For further assistance, visit http://www.vantageperformance.com.au/ or call Vantage on (07)32295750 .
Vantage Performance
Turnaround Management Specialists
19 March 2008
Corporate Turnaround
06 March 2008
NSW Networking in March
"Turnaround Management Association Australia invite you to the offices of Cash Resources Australia, Level 1, 50 King Street, on Wednesday 12 March at 6:00 pm for drinks and snacks.
Join Nick Samios and his staff in the newly renovated offices of Cash Resources Australia.
The Education Committee will provide a brief up-date on'"certification"in Australia. The CTP (Certified Turnaround Professional) designation is now well established in the US, and in development in the UK and other parts of the world. The Education Committee has developed a plan for launching it in Australia and will report on the execution of this plan."
Event hosted by Turnaround Management Association Australia.
Australia
Wednesday, March 12, 20086:00PM – 8:30PMLevel 1, 50 King StreetSydney, . NSW 2000
27 February 2008
TMA Australia Events
"The emergence of Turnaround Capital in Australia
Panel members will provide an overview and answer questions on, the conditions supporting the emergence of Turnaround Capital in Australia, increase in Turnaround Practitioners and the Private Equity outlook for 2008. "
Three Panel members:
Michael Fingland , Managing Director, Vantage Performance
Sharon Doyle , Head of Mergers & Acqusitions, Interfinancial
Matthew Reynolds , Partner, Home Wilkinson Lowry
Friday, February 29, 200812:00PMGreat Southern BoardroomLevel 24, Riparian Plaza71 Eagle StreetBrisbane, . QLD
22 February 2008
Why Hiring a Turnaround Management Specialist
A turnaround specialist comes on board with experience and objectivity. This specialist is an independent professional who can spot issues that may not be visible to company employees and act quickly to stabilize the business situation.
Signs of Trouble
· Ineffective Management Style
· Over-diversification
· Weak Financial Function
· Poor Lender Relationships
· Lack of Operating Controls
· Market Lag
· Explosive Growth
· Precarious Customer Base
· Family vs Business Matters
· Operating without a Business Plan
For further assistance visit http://www.vantageperformance.com.au/ or contact Vantage Performance on (07) 3229 5750
Vantage Performance
Turnaround Management Specialists
13 February 2008
Vantage Kokoda Challenge 2008
The Challenge:
To complete the Kokoda Trail and raise $30,000 plus for Youngcare!
This month The Point is taking a break from the various topics we normally discuss to bring you the story of the Vantage Kokoda Challenge!
In 1942 the Kokoda Trail was the scene of bitter fighting between Australian and Japanese troops during WWII, as young Australian troops fought to protect our homeland. It is a rugged and remote 96km jungle path, filled with hazardous terrain, steep jungle clad mountains and swift flowing creeks.
Vantage Kokoda Challenge 2008
In April 2008 a group of 8, including the Vantage Directors and their business associates will take on the incredible 9 day challenge of the Kokoda Trail. All suits will be out of sight as they pull on their trekking boots and spray on the bushman's repellent to take on the Track.
The training
Gruelling training has commenced with the group doing regular 3 hour hikes up Mt Coot-tha, to ensure their fitness will be up to the required level to complete the track.
Who benefits?
Our trekkers are not only doing it for their own personal achievement but to raise funds. Vantage is looking to raise in excess of $30,000 to benefit Youngcare, with 100% of money raised going to charity (The trekkers will each be covering their own costs to participate in this trek and Vantage will be covering all costs relating to the administration and sourcing of sponsorships and donations.)
Youngcare was set up in 2005 to raise awareness and money to build the first of many facilities to provide a dignified and relevant lifestyle for young people with high care needs. The first of these facilities has recently opened with the goal of creating change for young Aussies with high care needs finally becoming a reality. Youngcare's goal is to build more of these facilities with around 6300 young people in Australia currently needing this type of care. www.youngcare.com.au
If you are interested in becoming a sponsor or would like to donate, please contact us on 07 3229 5750 or e-mail admin@vantageperformance.com.au.
Vantage Performance
Turnaround Management Specialists
01 February 2008
Performance Improvement
Business success can be measured as the drive and willingness of a company to lead in their field.
Strategic reviews identifying areas of underperformance and implementing strategies to maximise the performance and value of your business can take your business from underperforming figures to sustained growth.
Performance Improvement reviews typically cover areas such as business strategy, margin improvement, cost reductions, financial modeling and benchmarking.
Management and key stakeholders working together focused on sustained growth can improve your current financial position.
For further assistance, visit www.vantageperformance.com.au or call Vantage on (07)32295750.
29 January 2008
Case Study - Project T-rex
Background
- 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
Outcome
- 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
Sphere: Related Content26 October 2007
The Perfect Storm?
The phrase “the perfect storm” has often been used to describe events that have come together in a most unexpected and devastating way. The effects of the simultaneous occurrences are far more powerful than if they had occurred independently.
In our August newsletter we raised concerns about the anticipated fallout from the credit crisis in global markets. The article provided a few key warning signs that companies should be aware of as the uncertainty in the economy grows stronger.
Additional recent events in the world financial and commodity markets have now led some to believe that we are heading for a ‘perfect storm’. What are the triggers? And what are the likely impacts on the Australian economy?
First though some recent headlines from the major newswires:
“Greenspan 50/50 on Recession” – Reuters 08/10/07
“Crisis was “accident waiting to happen" Greenspan” – Reuters 21/10/07
“Bernanke: Housing Woes to Slow Growth” - yahoo 15/10/07
“Credit turmoil could mean turning point for growth” – Reuters 22/10/07
“U S Home Foreclosures Double” – Foreclosures Daily 17/10/07
“Greenspan Says `State of Fear' in Credit Markets” - Bloomberg 23/10/07
“173 US mortgage companies have imploded in the past 12 months” – The Mortgage Lender 23/10/07
“Alarm bells ring ahead of CPI release” - AFR 23/10/07
“Banks warn on higher loan rates” - AFR 23/10/07
US credit crisis
The housing and credit crisis in the US has greatly impacted world credit markets causing a dramatic reduction in liquidity. The market has improved slightly but we are now seeing higher pricing of risk across the board and a re-rating of risk by the major credit agencies. The net result is that debt is becoming harder to source and more expensive for existing and prospective borrowers.
The effects of this are starting to be felt locally, as we are already seeing the emergence of tighter credit policy and higher pricing. This will impact negatively on those businesses that operate on high volume, low margin models and those businesses that are already highly exposed to debt.
The US real estate crash is still unwinding with similar concerns now being expressed about the UK market. As a high proportion of small to medium business owners in Australia have used their properties to finance their businesses, any reduction in Australian property prices will have a dramatic effect on their ability to raise additional finance which will slow their growth or lead many to experience a cash flow crisis.
Oil price
Oil has increased by approx. 50% this year to a high of US$87 of late prompting some analysts to speculate that a price of $100 is now possible. The upward pressure is due to a number of factors including the continuing unrest in the Middle East, increasing demand from China and India, a weak US dollar and an all time low in excess production capacity.
The issue of real concern for Australia’s debt laden families and small to medium businesses is that every 12% increase in oil is equivalent to a .25% increase in interest rates. Therefore, we have actually had 6 interest rate increases this year (2 normal plus 4 equivalent).
High cost of labour
The latest figures released on Friday show that Australia now has the lowest unemployment levels in 33 years at 4.2%. This has further strengthened the belief that interest rates will be increased again towards the end of this year and into next year.
Employers currently find their business activities constrained by a lack of available and skilled staff and the additional high costs of luring new staff or even keeping their own staff in the business. This problem is unlikely to go away even if there is a slowdown in economic activity. These issues are proving both disruptive and costly for most small to medium businesses as they struggle to perform in volatile labour markets.
Interest rate rises
The Reserve Bank has an often stated policy of keeping inflation within 2 – 3 % per annum. Recent events are testing the limits of this policy and therefore require the RBA to use the interest rates to curtail this. The effects of a buoyant economy, low unemployment, growth in real wages, increased food prices (because of the drought) and increased fuel prices all lead to the need for the Reserve Bank to raise interest rates further to keep the lid on an overheating economy.
Given the record levels of individual and small business debt, an increase in interest rates will result in a reduction in discretionary spending and slow economic growth.
High Australian Dollar
In recent years and in particular over the past few months, the strong economy and interest rate differentials between its major trading partners and Australia has placed upward pressure on the currency. The currency is currently trading at around 90 cents with some analysts anticipating it going as high as 92.5 cents by the end of this year and 95 cents by mid 2008.
This is having a significant impact on non mining related exporters. For those companies relying heavily on exports they may be finding it difficult to remain competitive so either margins or sale volumes will come under pressure.
The high Aussie dollar is great news for importers though who find their goods being very well priced and an opportunity for greater profits. The concern is that too much of this sector is towards the non essential or luxury market. The Reserve Bank finds itself having to consider the long term effects of raising or leaving current interest rates as they are. Any increase in rates will lead to more inflows from foreign buyers of the dollar and will lead further upward pressure of the currency.
Faced with so many divergent pressures, business owners need to be thinking very strategically in the coming months to ensure that their business can weather any upcoming economic downturn.
For more information please feel free to contact one of the team at Vantage Performance.
Regards
Michael Fingland
Managing Director
Vantage Performance
Turnaround Management Specialists
11 October 2007
New Vantage Performance Podcast
Michael Fingland, Managing Director of Vantage Performance, has launched our latest podcast edition. This podcast is exploring the complex and highly specialized world of corporate turnarounds.
This new podcast discusses the causes of decline and distress on a business particularly the external factors that a business can face.
For more insights, check our podcast link or download it at Itunes.
http://feeds.vantageperformance.com.au/vantageperformance
See you next time.
Vantage Performance
Turnaround Management Specialist
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