Venture capital backed buy-out of a family developed building services firm, designing, installing and maintaining water and waste pumping systems
When the second generation of the founding family decided that they had grown the business as far as they could, they realised their wealth and secured funding for the company’s future expansion by way of a VC backed management buy-out, led by a new CEO and FD.
This involved the development of detailed financial projections as a part of the business plan that supported the proposed funding and which modelled the key drivers of the business and presentations to financiers.
The business expanded nationwide from its south-east base, serving customers from individual homeowners, through building firms to major retailers who required maximum 4 hour response times, 365 days a year.
Improving the production of management information
Management accounts were produced only periodically and did not include a balance sheet, cash flow or any analysis of the results and implication for operations. Chris Backhouse developed the accounts, reporting key performance criteria to the Board monthly and against budget, ensuring banking covenants were closely monitored and good relations with the company’s bankers maintained.
Reviewing and assisting with the selection of IT operating systems
Rapid growth across the UK required control of the company’s teams of mobile maintenance engineers. All vehicles were tracked and electronic job instruction reporting systems implemented. This reduced average vehicle mileage, improved employees ‘ownership’ of key sites, reduced response times and increased capacity and profitability.
Managing the acquisition of a competitor
Chris managed all financial aspects of the acquisition of a small £3m turnover competitor, including its integration and re-structuring, introducing and co-ordinating the support of HR professionals so as to manage the many staff issues involved.
Grooming the business for exit to optimise its subsequent value
As well as developing good financial reporting systems, work included ensuring all aspects of good corporate governance were addressed and appropriate data collected so as to enable the business to position itself favourable when an exit was sought. The company was successfully sold on to a subsequent VC acquirer at an excellent multiple, providing a good return for the original investors.
