I can still remember my first few months at my new corporate job. Looking back now I can't believe how much has happened.
There were times where I wanted to give up, quit, throw in the towel. However I never gave in, and continued to strive forward: "What doesn't kill you, makes you stronger".
I worked on my weaknesses and improved my strengths throughout the years. By being diligent and consistent with my study I gained professional and life experience, adding further knowledge with courses and diplomas.
As advice to those of you starting your careers, I strongly believe in working and studying hard, living a balance life. Make plans for the years to come and help each other for a better tomorrow; your career is about to take off.
Our Vantage Performance team is looking forward to interacting with you again.
Regards,
Pedro Bueno
Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au
05 December 2008
How to Start and Keep Your Career on Track
When Simple Things Matter
Managing your staff throughout the year will probably require patience, strength and understanding. Building a strong team will make a difference when there is a greater need to deliver results under pressure.
When was the last time you asked how work been lately to those workers that "carry the piano" or that prepare and update spreadsheets while you are running in and out of boardrooms and dealmaking meetings.
Employees usually tend to respond to simple things such as giving them a chance to share their ideas, passing on confidence and dividing with them what's ahead. Don't forget that one day it was you that were updating Balance Sheets and Income Statements.
Having a strong team should give your firm a competitive advantage over your competitors.
Our Vantage Performance team is looking forward to interacting with you again.
Regards,
Pedro Bueno
Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au
03 December 2008
01 December 2008
“Corporate Firefighters”
Corporate turnaround management specialists come in as an outsider with an independent hand trying to boost company’s performance, managing stakeholders and implementing initiatives to turn the situation around for a long term growth.
Turnaround management specialists can be compared to firefighters as both professions have to act quickly and effectively, always trying to maximise the possibility of a positive outcome in a specific time frame.
If you had difficulty understanding how corporate turnaround specialists work this post should answer the question.
Our Vantage Performance team is looking forward to interacting with you again.
Regards,
Pedro Bueno
Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au
Never Promise more than What you Can Deliver
One of the lessons learned from rescuing corporations is that managers cannot promise things that are not feasible to be achieved during a crisis management.
If you create expectations and don’t deliver it, stakeholder’s loose faith on your business and become defensive from every move or deal to be done with your company and in times that you need their full support; this misinformation might lead to an early administration.
When times are difficult creditors, employees, financiers appreciate simple things like sincere communication, integrity and honesty.
Our Vantage Performance team is looking forward to interacting with you again.
Regards,
Pedro Bueno
Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au
Don't Let Fear Cloud Your Vision
Quite often managers complain about recessions and the downsides of it, although as in our lives there are different angles to look at the situation, and good things do emerge after periods of slow economic growth.
For businesses that have strong financial position, they will benefit from opportunities to gain market share, merge or acquire other businesses, pick and hire a best suitable staff and make the business stronger.
On the other hand, businesses that have weak financial position will benefit of having a forced chance to restructure and re-shape the future of the business to a much stronger long term forecast. Managers will be able to make the business lean, sell non-profitable divisions, decrease inventory on hand and cut operational, finance and overhead costs.
During a crisis most of us seem to be paralysed by the fear of failure. Great companies do resurge from downturns and recessions, because managers look at the future and leave the past behind.
Our Vantage Performance team is looking forward to interacting with you again.
Regards,
Pedro Bueno
Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au
25 November 2008
Does your Business need a Corporate Restructuring Specialist?
Every business has problems, problems might be small, big, frequent or less frequent, but problems are part of a business operation. The bottom line is when things go south, management needs to be prepared for the worst case scenario and act quickly.
The challenge is: you might have never been in a situation where time is an issue, cash is an issue, and creditors literally screaming at you are an issue. When times get tough, there is a need for a specialist to promptly stop the company from bleeding cash, create some visibility and gain creditors confidence back. The interesting point is the specialist is only a consultant and he also needs your help to turn things around as you are probably the person that most knows the company affairs.
In the end of the day, if your business doesn't have the financiers and staff support your company will most likely be heading to liquidation.
Our Vantage Performance team is looking forward to interacting with you again.
Regards,
Pedro Bueno
Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au
13 November 2008
Protecting Your Business during a Global Economic Slowdown
Not surprising many companies come from a more positive economic phase and enter into a downturn with weak balance sheets, high staff turnover and a lack of risk assessment.
Protective Actions to be considered during a Downturn:
• Good Financial planning
• Start questioning early your credit facilities
• Maintain a meaningful dialogue with your Bank and other major creditors
• Review your Bank charges
• Review all your Direct Debit arrangements
• Tighten up credit control, cash collection, treasury management
• Consider your current and future customers and their ability to pay
• Pay particular attention to investments and major capital expenditure
• For December year ends - be clear about Stock and WIP
• Look critically at staff requirements/recruiting strategy
• Be cautious in awarding pay rise and in setting up staff incentives schemes
• Map your sales trends
• Know your costs
• Prepare detailed monthly accounts, share key information with your Bankers
• Prepare accurate Cashflow projections and update regularly
Our Vantage Performance team is looking forward to interacting with you again.
Regards,
Pedro Bueno
Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au
06 November 2008
Number of Administrations
October 2008
KordaMentha - 6
McLeod & Partners - 6
SV Partners - 6
PKF - 4
McClaren Knight - 3
Foreman Business Advisors - 2
Hall Chadwick - 2
Pilot Partners - 2
Worrells - 2
Cor Cordis - 2
Insolvency and Turnaround - 1
Ramsay Clout - 1
RE Murphy & Co - 1
26 October 2008
Warning Signs
Business failure are often preceded by a number of symptoms or warning signs. If identified early enough, business failure can possibly be stopped and turned around back into sustainable growth.
Businesses suffering from liquidity problems usually have excessive loan repayments, accumulated inventory (low inventory turnover), declining sales orders and declining cash inflows.
Below are some causes affecting the performance of businesses:
Macro issues - economy, industry and legal issues
Micro issues - management, policies and accounting practices
Important measures can be taken to attempt to turn the business around, such as reduced investment in inventories, greater control of overhead costs, a more rigorous receivables collection policy, and increased long term and short term borrowings within the business's capacity to service.
Important initiatives to help Turn Your Business Around:
1- Cash Flow projections
2- Receivables management
3- Inventory management
4- Good relations with stakeholders
Our Vantage Performance team is looking forward to interacting with you again.
Regards,
Pedro Bueno
Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au
14 October 2008
Case Study
Project Jean - Turnaround Management
Background
Successful retail group that expanded too rapidly
Strong brand with 12 locations
Significant trading losses
Working capital crunch
Key issues
Finance covenant breaches
Cash flow crisis
Bank was "under water" and refinancing was not an option
Poor working capital management
Lack of management depth
Core business still viable
5 Phases
Stabilise the business
Strategic review and turnaround plan developed
Close unprofitable/unsustainable outlets - stakeholder negotiation was key!
Focus on core stores and "grind it out"
New growth after pruning
Outcome
Cash flow crisis averted
Stakeholder relationships restored
Tracking 80% + increase in same store sales
$1.1 million improvement in net profit
Vantage Performance
Turnaround Management Specialists
www.vantageperformance.com.au
01 October 2008
Optimising Business Finance in a Slowing Economy
In this month’s post we discuss the impact of the liquidity crisis on business borrowings, and provide a case study example of how to maximize your chances of raising finance.
Despite a 25 basis point reduction in the official interest rate earlier this month, and speculation of further interest rate cuts, Australian borrowers are still bearing the brunt of the global liquidity crisis, as financiers impose tougher lending criteria and pass on their ever increasing costs of credit.
Small and medium size business surveys consistently reveal declining business activity, lower capital expenditure and a slowdown in total business debt.
This being the case, now is an ideal time for business managers to review their financial strategy and ensure their business is equipped to face the continuing challenges of a slowing economy.
Below is an example of how Vantage Performance assisted a group to restructure its existing facilities to enable the business to achieve its business objectives.
Case Study -
Project Overview
A dominant market position had led this group to become complacent, allowing aggressive competitors and industry consolidation to threaten the business.
Our assistance was sought by the group’s bank, following a series of profit downgrades and the group’s resulting inability to repay core debt.
With over $80 million in annual sales the group had more than 75% market share in its core competency areas. Management had become distracted from the core business whilst pursuing a number of unsuccessful merger / acquisition opportunities.
Project Objectives
Our scope was to undertake a strategic review of the group’s operations to (1) determine whether it had sufficient collateral and cash flow to support further restructuring; and (2) how its present strategy would cope amidst continued industry consolidation and competitive pressures.
Our Approach
Our initial objective was to assess the group’s immediate funding requirements to determine whether the bank would extend the group’s borrowings.
We determined that the group could only support the interest on existing debt until a turnaround plan had been successfully implemented. We undertook a thorough review of the group’s historic financial performance, financial forecasts and strategic positioning against industry peers to determine whether such a plan could be created and successfully carried out, or whether a trade sale or merger should be considered.
Key Benefits Delivered
Our thorough analysis and detailed report provided the bank with an intimate understanding of the group’s present operations and strategic direction. We also provided the group’s management team with a series of recommendations on how to turn the business around.
With a detailed understanding of the business, the bank was able to assess the group’s core funding requirements and restructure existing facilities to allow the group to capitalise upon its market position.
Our involvement transformed a potential crisis situation into an opportunity for the bank to extend its involvement with the company and participate in further industry consolidation.
For more information please feel free to contact one of the team at Vantage Performance.
Regards
Michael Fingland
Managing Director
www.vantageperformance.com.au
Turnaround Management Specialists
10 September 2008
Case Study
Project Drott - Turnaround Management
Background
- Earthmoving contractor that decided to expand into construction
- The first two contracts incurred losses of $500k
- Severe cash flow shortage
Key issues
- Business unable to refinance to another bank
- Financial covenant breaches & cash flow crisis
- Bank was "under water" after reviewing security statement position
- Poor management of working capital and other KPI's
- Restoration of bank relationship essential
- Back to basics mentality required
3 Phases
- Stabilise the business and assess short and long term cash flow requirements
- Strategic review and turnaround plan to maintain bank support
- Implement and monitor turnaround strategy
Outcome
- Debtor finance facility used to extinguish bank overdraft
- Turnaround plan implemented concentrating on their core business
- Overhaul of working capital, financial and operational reporting structure
- Crisis averted and bank relationship restored
- 97% increase in revenue in 12 months
- Turnaround in profit from a loss of (7%) to a profit of 6% of revenue
16 July 2008
Credit Crunch Carnage
Fallout from the US sub-prime market collapse which spread throughout Britain, France, Germany and Japan has now reached our shores.
Much of the credit offered by Australian financial institutions has traditionally been sourced offshore, so it is with interest that we look at the recent write-downs by international lenders, and consider the impact on our own economy.
During the last six months, international lenders who had carried assets at inflated values for many years have been forced to mark to market their balance sheets, resulting in significant portfolio write-downs.
The significance of write downs to date is showing current year write-downs in excess of US$337bn. Of particular interest is the inclusion of blue chip banks, including Citigroup US$69bn, UBS US$45bn, Merrill Lynch US$38bn and Morgan Stanley US$23bn.
With their balance sheets eroded international banks are protecting themselves against further losses by imposing tougher lending criteria on borrowers and by increasing the cost of credit via higher interest rates.
The fallout from the subprime credit crunch continues to be felt by Australian borrowers with three of the big four banks increasing interest rates beyond RBA official increases again in the past week.
Already showing signs of slow down following four successive interest rate increases by the RBA, the latest un-official interest rate increase is certain to have a further dampening effect on business and consumer sentiment which will inevitably translate into further reductions in discretionary spending, increased mortgagee auctions, corporate liquidation and higher unemployment.
Australia’s economic slowdown has increased the need for specialised corporate turnaround advice.
For more information please feel free to contact one of the team at Vantage Performance.
Regards
Michael Fingland
Managing Director
11 July 2008
Business Development on a Friday Afternoon
Good Afternoon Australia,
I guess most of your team is checking the clock and counting down the hours to start their weekend after a long busy week. Am I right?
Why don’t you change that and invite your entire staff to drop what they are doing and join the management team to brainstorm about business development in the boardroom.
The results of this session might generate a bright idea towards the benefit of your company out of a long lasting Friday afternoon.
Nothing better than see your whole team engaged in developing your business.
What is your say on that? How would you react if your manager suggested it to you?
Our Vantage Performance team is looking forward to interacting with you again.
Have a great weekend,
Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au
What if your cash position starts to tighten?
Good Day Australia,
Last weekend I went to a friend’s birthday and kept hearing how everyone has been suffering with the current market situation and how cash is king again. So I thought of writing about cash flow issues in our turnaround blog today.
When times like these where expressions such as "Credit Crunch", "Day of Reckoning", "World Crisis" and so on are part of our day to day and on top of that your Financial Controller seems more stressed than usual maybe your cash flow position should be re-analysed.
Cash position tightening due to negative trends on sales, increase of cost of good sold and other costs such as wages can lead to a dangerous road.
The shocking fact is that many businesses still not have a cash flow forecast to be able to predict if the business is "bleeding cash" and soon might be out of it. Does your business have a Cash Flow Forecast?!
It might the case of cancelling a few meetings to be able to concentrate and fully commit everyone to put a cash flow forecast up and running. Be concise about all your inflows and outflows, once the cash position is under control, start thinking of the next step: Growth.
Have you had a negative cash flow before? How did you manage to turn it around?
Our Vantage Performance team is looking forward to interacting with you again.
Have a great day,
Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au
09 July 2008
How to make your workplace a desirable work environment
I always think that where you spend most of your time through out the years has to be a place of joy, friendly people and a health environment. So why not make your workplace another one as you spend at least eight hours a day, five days a week, 12 months a year.
Every year Fortune 500 magazine puts together a list of the top companies around the globe that people vote for best companies to work for based on what they do to boost employee satisfaction.
The reality is that the best incentives are non cash based where people appreciates the most. It can range from gym membership, trips to the coast, day spa, restaurant vouchers, day care, health insurance, casual Friday etc…
On top of that, employees also appreciate respect, good communication, feedback, mentoring, career opportunities, flexibility, balanced work and personal life.
Go ahead, make a change, be creative.
How is your workplace environment? What would you like to change in your workplace?
Our Vantage Performance team is looking forward to interacting with you again.
Have a great day,
Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au
What if your staff is not engaged with you?
Good Day Australia,
Vantage had the end of the financial year lunch at an Asian restaurant in Brisbane. The food was great but what really caught my attention was how every single staff from the restaurant was fully focused and engaged to serve us best. We could feel the appreciation of being looked after with continuous customer service.
Having your whole team working together, communicating and fully engaged is a strength that every business must desire.
How to do it? How to keep it? Questions that pop up and it is probably easy to answer but hard to have it.
Quite often we all know the answers but the x factor is having this fully committed team in a day to day matter.
Letting others that remain silent to speak or ask them every time they remain silent in a meeting or in a discussion room might instigate those that feel out of the team to “step up a knot” towards your business growth.
Eight hours a day full of meetings, daily commitments, networking and planning. Does that sound familiar? Are you able to stop and have a chat with everyone on your floor and listen to them for a couple of minutes?
You might notice that those team members that have been underperforming should start showing more thoughts related to your business. In the end of the day, everyone likes to work in a friendly and constructive environment.
How do you engage your team on a day to day basis?
Our Vantage Performance Team is looking forward to interacting with you again.
Have a great day,
Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au
03 July 2008
What if one of your key personnel decides to retire or leave the company?
Good Day Australia,
Driving to work today I thought of how people get paralysed when they are caught up with an expected situation and decided to post something about it. I hope you all enjoy this one.
When you feel everything is going according to plan, an unexpected resignation or premature retirement letter reaches your human resource department. What’s your reaction?
Did you think of talking to the person trying to understand the reason behind the decision? Is it possible to reverse this decision?
In case that the situation is irreversible, an action plan should be developed and followed.
Informing all your team about the resignation through a formal circular to the staff clarifying and prevent any sort of negative rumour is a major step.
A next candidate for the position should be appointed; the decision is if an internal or external person will take the job. In case there is not a perfect match there is a possibility to wait and take the process slowly as there is nothing worse than hiring or promoting someone that is not suitable or is not ready.
After stabilising the situation meetings could be held to determine how things will be from now on and engaging the staff in general as a team to get through together.
As a suggestion, do not panic because this feeling can be passed on to others and the situation might get out of control. Always have a back up plan around crisis management involving any risk that can affect your business.
Have you had any sort of experience related to losing a key employee? How did you manage it?
Our Vantage Performance team is looking forward to interacting with you again.
Have a great day,
Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au
Has your business grown too quickly?
When your business has had sustained rapid growth and margin decline or losses at the same time, a red flag should be raised.
Increasing sales at the cost of margins is a condition that we come across far too often. Typically it occurs over time “naturally” as management teams often don’t have the systems and controls in place to understand by product or by customer how the increase in sales is affecting their profitability. Failure to pass on raw material or input costs is a key issue as management teams are too afraid of losing customers.
At the end of the day if you have faith in your products and/or services then at some point you need to trust in that and hold your ground or price increases, particularly if failure to do so may place your business in jeopardy.
When was the last time you checked your product range and conducted a pricing and margin review?
Our Vantage Performance team is looking forward to interacting with you again.
Have a great day,
Vantage Performance Team
Turnaround Management Specialists
www.vantageperformance.com.au
30 June 2008
End of Financial Year
Well another financial year has come to an end and it has been a real journey over the last 12 months.
Vantage Group has expanded significantly adding a new business to the Group: Vantage Human Capital (Recruitment, Employee Retention and Performance Management) being led by Richard Dunks as a Managing Director and also recently three new Senior Executives have joined Vantage Performance bringing with them different backgrounds of experience.
So Vantage Group wishes all our clients, friends and acquaintances a good start for the new financial year ahead.
For further information do not hesitate to contact Vantage on (07)3229 5750 or visit us on www.vantageperformance.com.au
Vantage Performance
Turnaround Management Specialist
04 June 2008
Our Competitive Advantages
We are specialists in turnaround management
We are a market leader in turnaround
We were a pioneer in Brisbane
We are a dynamic and nimble firm
Our level of experience and mix of staff
Our credibility as a specialist
Our suite of services is unique
Our podcast and newsletter
Vantage Financial relationship
Vantage Human Capital relationship
For further information contact Vantage Performance on (07) 3229 5750, or visit us on www.vantageperformance.com.au
Vantage Performance
Turnaround Management Specialist
03 June 2008
Day of Reckoning?
In our August and October 2007 newsletters we forecast that the US credit crunch combined with the Australian economy’s own issues will have a dramatic impact on our business landscape.
With the Australian economy showing signs of slowing, we take a look at what has happened during the last few months and where the Australian economy appears to be heading. We also provide a list of key initiatives for managers to use in preparing their business for an economic downturn.
US Credit Crisis
Although the Federal Reserve appears to have brought the US financial system back from the brink, the ongoing credit crunch continues to filter through global credit markets, including our own.
Experts are now predicting that the credit crisis will extend beyond 2008 as increased borrowing costs and reductions in available credit spread from corporations to consumers. This is expected to take the form of a tightening of controls around small business and consumer credit via a combination of higher interest rates and more stringent qualifying criteria.
Oil Price
The price of oil has risen 37% during 2008 to over US $130 per barrel. Although Australia has been somewhat sheltered from the fallout of the high oil price by the strengthening Aussie dollar, continued unrest in the Middle East, steadily rising demand, flat production and a weak US dollar continue to provide upward pressure on prices. Some analysts forecast prices of US $150-200 per barrel over the next 6 months to 2 years. Ever increasing fuel prices continue to hit business' bottom line both directly in the form of increased fuel costs and indirectly via increased input costs.
Rising Labour Costs
The cost of attracting, securing and keeping appropriately qualified employees continues to be a burden to small and medium sized businesses. With unemployment at a 30 year low of 4.3% and an unprecedented number of public infrastructure projects competing for skilled labour, the current labour shortage is likely to continue for some time to come.
Rising Interest Rates
Borrowers have borne the brunt of four successive 25 basis point increases since August 2007, taking the official cash rate to 7.25%. The major banks have also added some increases of their own as they seek to pass on higher wholesale borrowing costs driven by the credit crisis. With inflation running consistently above the Reserve Bank's target range analysts predict more rate increases this year.
The cost of servicing household debt is finally starting to slow discretionary expenditure. When coupled with increased fuel and food costs we expect the slowdown in the economy to broaden and accelerate.
High Inflation
Surging petrol, food, housing costs and increasing wages contributed to Australia's annual core inflation rate of 4.4% in the first quarter, putting it outside the Reserve Bank's target range of 2%-3%. Inflation is forecast to remain above 4% for the remainder of 2008 before falling to within the target range toward the end of 2010.
High Australian Dollar
The Aussie dollar has continued its rise from US $0.88 at the end of 2007 to all time highs of US $0.96. Although this reflects the current strength of our commodity market, a significant portion of these gains are due to the weakening US economy. With no end in sight, the strong Aussie dollar will continue to undermine the competitiveness of non-mining related exporters, and increase the profits of importers.
With all indicators pointing towards tougher times ahead, it's time for management teams to focus on strengthening their balance sheet. This can be achieved by optimising working capital through initiatives such as:
Ensure Forecasts Are Up To Date: Now is the time to review processes which govern working capital and cash-flow decision-making. Robust systems will enable managers to identify needs and implement appropriate solutions on a timely basis.
Reduce Debtor Days: Strategies to reduce debtor days include:
- Incentivising staff to reduce overdue accounts
- Providing discounts to customers for early payment
- Strengthening reminder and debt collection processes
- Tightening the credit application process
- Implementing penalty charges for late payment
- Making sales staff accountable for client collections
- Using the 80/20 rule to cull low value/non-profitable customers
- Implementing cash only sales for certain circumstances
Tighten Cash-flow: Early identification of potential liquidity problems is vital in a slowing economy. Managers should increase focus on cash-flows through targeted internal reporting, and tightening controls on non-essential expenditure.
Stock Levels: Strategies to reduce stock levels include:
- Re-defining optimum stock levels of raw materials
- Reviewing batch processing levels
- 80/20 rule to liquidate obsolete & surplus stock
- Implement just in time purchasing
- Return usable excess raw materials to vendors
- Utilize inventory on consignment from suppliers
Consider Debtor Finance: Debtor finance can deliver a major boost to cash flow as debtors are sold to a third party financier.
Cull redundant products: Products which are no longer in-line with core operations should be identified, and a decision made as to whether to strategically increase their viability or remove them from the business's product range.
Review Credit Arrangements: Paying creditors early (even if attractive discounts are offered) puts unnecessary pressure on working capital. Managers should also assess the strategic position of suppliers and identify opportunities to renegotiate agreements on more favourable terms.
Ensure Optimum Workforce: Employee remuneration and related costs are a significant expense for most businesses. Aligning employee numbers and remuneration with industry averages, and optimising available technologies to reduce labour input can assist in reducing employee expenses.
Some managers will have sufficient resources and time to execute these tasks. However, a significant number will require the expertise of corporate turnaround and performance improvement advisors to ensure a rapid and timely implementation.
For more information please feel free to contact one of the team at Vantage Performance.
Regards
Michael Fingland
Managing Director
www.vantageperformance.com.au
Turnaround Management Specialist
Vantage Performance News
Vantage Performance has recently added another Senior Executive to the firm.
Elizabeth Mawby - Senior Executive
Elizabeth has considerable experience in the areas of auditing, corporate taxation, insolvency and business process improvement.
She began her career in public practice, specializing in auditing large privately owned businesses both in Australia and the USA. After a number of years in public practice, Elizabeth moved to the corporate sector, working with resources companies ExxonMobil and Rio Tinto. She has acted as financial controller of various Australian and International operations, and has extensive experience in financial reporting, analysis (including KPIs, budgeting and forecasting) and process improvement.
Elizabeth’s assignments have taken her to the USA, UK and south east Asia.
Qualifications: Chartered Accountant, Bachelor of Business, Graduate Certificate in Applied Finance
Memberships: Institute of Chartered Accountants of Australia
For further information, don't hesitate to contact Vantage Performance on (07) 3229 5750 or visit us on www.vantageperformance.com.au
Vantage Performance
Turnaround Management Specialist
13 May 2008
Our Services
- Strategic business assessment
- Business risk assessment
- Business plan execution
- Profit improvement strategies
- Strategy formulation
- Strategic marketing
- Financial performance analysis
- Human resource assessments
- Working capital funding strategies
- Business intelligence systems
- Financial modeling / forecasting
- Employee incentive programs
- Industry analysis/benchmarking
For further information contact Vantage Performance on (07) 3229 5750, or visit us on www.vantageperformance.com.au
Vantage Performance
Turnaround Management Specialist
Case Study
Background
Mobile phone distributor and logistics company
Listed company with sales of $600m p.a.
Multi-site business, 500 employees
Loss of $30m (profit of $15m in previous year)
Bank finance $72m (strained relationship)
Key issues
Risk of short term facility breaches
Management’s corporate strategy flawed
P&L and cash flow forecasts too optimistic
Key business drivers and risks identified
Poor management of cash flow and working capital
Restoration of bank relationship essential
Significant profit and cash generation opportunities
Viability of business is questionable in current form
Several non-core businesses not adding value
Equity injection required
3 Phases
Assess short-term cash and financing needs
Viability review and develop turnaround plan
Implement & monitor turnaround strategy
Outcome
Managed to avoid a likely collapse
Some non-core businesses sold or closed
Significant reductions in cost base
Significant working capital improvements
Bank debt down to $12m ($60M improvement)
Bank relationship restored
Successful rights issue of $3m
Revised budgeted EBIT of $3m (ie. $33M turnaround)
For further information contact Vantage Performance on (07) 3229 5750, or visit us on http://www.vantageperformance.com.au/
Vantage Performance
Turnaround Management Specialist
Vantage Kokoda Challenge 2008
Kokoda Challenge was a success! Vantage Group raised funds for Young Care and in return directors and friends from Vantage Group completed the Kokoda Challenge.
Congratulations to the brave directors of Vantage Performance and Vantage Financial, Michael Fingland, Brett Fingland and Rob Kirkpatrick in finishing the Kokoda track within ten days.
VANTAGE PERFORMANCE
http://www.vantageperformance.com.au/
VANTAGE FINANCIAL
http://www.vantagefinancial.com.au/
Vantage Performance
Turnaround Management Specialist
14 April 2008
Networking in QLD
Networking in QLD 1 May 2008, Australia
"The Brisbane Committee of TMA Australia invite you to the offices of Vantage Performance, on Thursday 1st May at 5:30pm. This function will be a great avenue to network with your peers and other professionals in the industry. Thanks goes to Vantage Performance for sponsoring the evening."
Event hosted by Turnaround Management Association Australia (TMA).
Thursday, May 1, 20085:30PM
Vantage Performance
Level 5, 247 Adelaide StreetBrisbane, QLD,
For further information follow the link:
http://www.turnaround.org/cmaextras/QLDRegistrationform080501.pdf
Vantage Performance
Turnaround Management Specialist
Vantage Performance News
VANTAGE PERFORMANCE IS GOING GREEN. Yes that’s right. The Vantage group is going to become a carbon neutral firm.
We have just commenced a process with a company by the name of The Carbon Reduction Institute http://www.noco2.com.au/ whereby, they will be conducting an audit to determine our carbon footprint. They will then recommend a range of initiatives to reduce our footprint and then as a final solution recommend what investments we can make to reduce our footprint to zero (ie. Planting trees etc.).
We are really proud of this initiative and the small part we will play in the bigger picture so I hope everyone gets behind this initiative.
For further information, contact Vantage on (07) 3229 5750 or visit us on www.vantageperformance.com.au
Vantage Performance
Turnaround Management Specialist
Vantage Kokoda Challenge 2008
Vantage member's and colleagues are a few days away to start their hiking experience to embrace this difficult but rewarding journey.
Good luck everyone and we can't wait to see you all back in the office to hear the stories and challenges through this experience.
http://kokoda.vantageperformance.com.au/
Vantage Performance
Turnaround Management Specialist
Vantage Performance News
Vantage Performance has recently added two Senior Executives to the firm.
Kevin Higgins - Senior Executive
Kevin brings more than seven years of corporate restructuring experience to Vantage Performance. He has worked on a wide number of assignments and industry sectors, both locally and nationally. Kevin’s advisory and restructuring experience includes independent business reviews, development and implementation of financial restructuring, recapitalisation and refinancing strategies.
Prior to joining Vantage Performance Kevin worked for two National corporate recovery firms. This included a secondment to Perth where he played a key role in establishing a corporate recovery practice.
Qualifications: Certified Practicing Accountant, Bachelor of Business
Memberships: CPA Australia, Insolvency Practitioners Association Australia (Associate)
Harsh Shah - Senior Executive
Harsh has over 10 years experience in the Charted and Commercial accounting fields. He has considerable experience in the FMCG sector and the Nutraceuticals and Food Ingredients manufacturing industries.
In recent years Harsh has concentrated on financial management and business improvement strategies including cost control, working capital management, cash flow improvement, activity based costing, ERP system implementation, restructure of manufacturing / subcontract operations, foreign exchange hedging, supplier negotiations, evaluation of new business opportunities, strategic purchasing and transformation of culture & performance through employee engagement and morale.
Qualifications: Associate CPA, Master of Professional Accounting, Bachelor of Commerce
Memberships: Australian Institute of Certified Practising Accountants, Introduction Leader with Global Training & Development Company Landmark Education.
For further information, don't hesitate to contact Vantage Performance on (07) 3229 5750 or visit us on www.vantageperformance.com.au
Vantage Performance
Turnaround Management Specialists
19 March 2008
Corporate Turnaround
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
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
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