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| The Objective • Improvement in cash position to enable larger contracts to be undertaken and increase enterprise value The Background • Cash Strapped manufacturing company sought to improve its cash position which was reducing the project bid size and putting a strain on project completions. What we did • A diagnostic was undertaken of asset utilisation involving asset turnover analysis which revealed many underperforming and underutilised assets. • The core competency of the company was identified and non core activities were analysed with an outsourcing strategy being developed. All non core assets where identified and a asset sale strategy introduced. • Asset performance was included in business management incentive schemes and pricing methodologies and workshops were undertaken to implement the new methodology The Result • Non performing assets were sold buildings and offices were leased back non core activities were outsourced and the company was restructured around its core capabilities • Margins and free cash flow increased substantially increasing the value of the enterprise. |
| RETURN ON INVESTMENT MANAGEMENT INCREASES FREE CASH FLOWS |
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| Case Study - Free Cash Flow |
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