Mentoring, Sound-boarding and Non Exec Director engagement:
We were contacted by the company owner in the autumn of 2015 to objectively look at assessing his business. Our engagement was initially informal during the assessment process. The business enjoys in-excess of 20 years trading, however it had recently hit a turbulent period resulting in a CVA arrangement with its major creditors. The ‘then owner’ believed so strongly in his brand, customer base and his employees that he simply could not allow the business decline further.
We worked closely with the business owner on an informal basis initially to understand the trading offer and his systems. Starting at the basic’s with ‘income and expenditure’ we embarked on some extremely challenging meetings with the ‘then’ board. The business owner realised through this initial assessment that he needed more of us. We were asked to provide a more formal ‘Non Executive Director’ role (NED). Working with the owner with a hands approach we aided implementation of initiatives and strategies, This led to further and wider support by the business’ own staff and external partners. Various internal problems and issue’s where challenged and the business implemented many new strategic policies as a result.
Working closely with the company’s accountants, radical areas of financial commitment where challenged. For instance; a large distraction was the procurement and maintenance of its van fleet. The business had never challenged its viability, it was purchasing new vans direct from Volkswagen (the owner had a personal passion for ‘T5 Transporter’ vans). The decision by him to try and manage a very important and complex element of his business led to costly financial burdens. These burdens where causing major distractions to the core activities of the business and its internal team.
By working closely with company’s accountants/banks, and mentoring a new Managing Director, we supported the business in implementing a clear turnaround strategy. The business in such a short period of time changed considerably by the summer of 2016. The support we gave to develop and implement business roadmaps, along with a full business strategy aided the change. The management team implemented and initiated client life-cycling, ensuring all staff understood their roles and responsibilities. (to name but a few). The business began to change dramatically & by the end of the first 6 months in 2016, a formal MBO was put to the ‘then owner’.
The owner recognised that changes were necessary and accepted that his tenure was at an end, accepted an MBO offer and a suitable exit. The MBO was completed shortly thereafter early autumn of 2016, at the same time removing the business of its CVA status.
Four Mime supported all parties from the initial mentoring through to NED objectivity, aiding to negotiate & broker a deal between parties. We continue to provide ‘NED’ support of the new management team and its wider board.
The business is now enjoying a new lease of life, it is now part of a new group business which is looking to expand its offer via new synergy business types.
We’re proud to have been involved in the mbo process, aiding all parties to arrive at a suitable conclusion for all.