Case Study

What happens when your business hits a brick wall?

A group of companies turning over £10 million lost £4 million of its turnover overnight as the result of a policy change of one of its major customers.

The company was faced with insolvency and the directors were about to loose their livelihood.

The overheads of the group had grown to fit its turnover rather than being subjected to rigid control. This fact had been correctly identified by the directors before they consulted me.

Following my involvement it was clear that if the business was to survive it had to be downsized dramatically. The group structure was no longer relevant to the business and would have to be dismantled.

The difficulty that arose was that any controlled downsizing of the operation would take between eighteen months and two years and the directors had less then a month to achieve this, before the situation was taken out of their control.

Following the implementation of a drastic strategy the whole process was achieved in three weeks and the business is now thriving within a single company with much reduced overheads.