Case studies
These examples illustrate how interim executives bring specialist expertise to facilitate significant change. Each assignment plays to the interim's strengths and previous experience - minimising risk and leaving lasting value.
Here are some recent examples of where AshtonPenneyInterim has been able to provide a lasting business solution.
Turnaround management projects at the behest of stakeholders
A private equity stakeholder contacted AshtonPenneyInterim following news that a well known sports manufacturing company in its portfolio was heading towards insolvency. An acute increase in demand from customers had led to a production bottleneck, threatening the stability of this business. The incumbent manufacturing director was also inexperienced and had lost control of both staff and customers.
A heavyweight interim COO was sourced, re-interviewed and began a nine
month assignment within two days of the initial stakeholder briefing. During
the assignment the interim executive was able to stabilise the company
within one month, restructured the business and improved production
efficiency, saving 4 million in the process. As well as signing new customers and extending contracts with existing customers, the interim was also able to mentor the underperforming manufacturing director.
Turning around an underperforming retailer
The new UK owners of a distressed European retail company faced an uncertain ROI. The management team had proved to be incapable of delivering the much needed turnaround and had lost the backing of all stakeholders.
A shortlist was compiled and delivered within three days consisting of bi-lingual CRO candidates with track records of successful retail assignments based throughout Europe. During the assignment the
selected interim executive refinanced the business, easing cash flow and tension with suppliers as well as reviewing and implementing a new commercial strategy. In the process, the company recovered 2million from long term debtors and was able to rebuild failing relationships with manufacturers.
Protecting stakeholders interests
A boutique asset management business came under corporate attack from a minority stakeholder based overseas. The company had made three successive annual losses and no dividend had so far been paid to the stakeholder who at this stage threatened legal action against the CEO.
An influential non executive director made contact with AshtonPenneyInterim and within one week an interim CEO with extensive experience of difficult negotiations in the same overseas country was in place. During the assignment our interim executive successfully negotiated with the stakeholder buying the company time to prepare against negative media attention and protecting the company against insolvency. He was also able to review and implement a new commercial strategy, pursuading the existing chairman to restructure the management team to include an interim CFO.
After six months the company broke even and is now forecast to make a net profit by year end.
Introducing specialist compliance skills
The Chairman of a listed retail bank faced damaging media attention and investigations by the FSA due to the company's inadequate compliance framework. This also threatened the position of the bank as a FTSE 100 business.
Having been approached by the Chairman, AshtonPenneyInterim worked confidentially with the group managing director to source an interim compliance director. During the assignment, our interim executive confirmed that the current director had failed to implement the correct compliance framework and made contact with the FSA to make them aware of the position. After overhauling the entire compliance strategy to focus on critical objectives he was able to win back the credibility of the group compliance function and ensured that all regulatory deadlines were met, in the process preventing a multi-million pound FSA fine.
Project to increase cash & earnings
€700m
turnover manufacturing business with 3,500 employees appointed an interim
project team to maximise short term value by accelerating cash generation
and earnings improvement. The agreed actions were:
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Develop a short term cash management & generation plan;
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Develop & implement short term restructuring work streams;
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Introduce structures to monitor & control the projects;
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Produce robust financial forecasting systems;
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Produce the restructuring business plan.
The
results surprised most onlookers:
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€50m of cash generated from working capital in 5 months which funded the
first phase of the restructuring plan;
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Cost base was reduced by €45m;
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These provided the opportunity to reconfigure the business & move into
sustainable profit…maintaining the momentum of the turnaround.
Wherever
the business is situated, whatever the sector and armed with a defined plan,
interim executives turn stakeholders’ objectives into operational results.