• Improvement in cash position to enable larger contracts to be undertaken
and increase enterprise value
• 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
• 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|
|Case Study - Free Cash Flow|
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