Independent Business Review
International wholesale distribution group
Background
A European component of a large international wholesale distribution group, the group’s turnover was £3.5 billion and bank debt £700 million. The European sub-group comprised some 24 trading companies operating in 18 countries with a turnover of £1.8 billion. A syndicate of 8 banks instructed our team to undertake an independent business review, through a referral from an associate firm overseas.
Position on instruction
The group had been suffering a cyclical and secular decline in demand which was forecast to continue for at least a further year. Management were implementing a number of strategic initiatives to face up to these difficult market conditions. Our brief was primarily to review the next 18 month forecasts and assess the likely impact and achievability of the strategic initiatives.
We were also asked to look at free cash flow available to repatriate to Group and potentially be used to pay down corporate bond creditors who were being separately advised.
Immediate action
We fielded a team of 5 people sourced from our Banking and Restructuring team and Transaction Support team in Corporate Finance.
End result
The initial assignment was completed within three weeks and potential further stages of work are pending
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