Background
Our Virtual Finance Director James worked with the Owner Directors over a 5 year time period, with the timeline of our strategic input being:
- Feb 2012 Initial workshop and strategic business review
- Apr 2012 on Provision of Virtual Finance Director service including Management Accounts, Budgets etc
- Jul 12 Senior Manager Bonus scheme introduced
- May 14 EMI Share Option Scheme introduced
- Apr 15 Management Buyout completed
- July 15 Director graduates on the Goldman Sachs 10k Business Growth programme
- Apr 17 Preparation for Due Diligence (DD) commences
- Aug 17 Business Sale completes after clean DD results
Service business Case Study
Two co-owners and Directors founded the business in 1999, and grew the business from its roots, to include both two new service lines. By March 2012 the Group had a turnover of £2.6m and making a good net Profit.
Following the initial workshop and review, vfdnet worked as a part time Virtual Finance Director, including review and commentary on the monthly management accounts as well as managing the annual budget cycle. Once the management accounts could be relied on vfdnet assisted the Directors by introducing a senior manager bonus scheme and EMI share option scheme, addressing the short and medium-term incentives for the key managers. During this period vfdnet assisted the Directors in two acquisitions.
In 2015 one of the co-owners wished to exit the business, so vfdnet assisted with the negotiation and structuring of the Management Buyout, helping to complete this in April 2015, and so allowing the co-owner to emigrate.
After the Director graduated from the Goldman Sachs 10k business growth programme, the Group continued to grow, both the topline sales and bottom line profit, with the year 2016-17 recording Sales of £5.9m and a good Net Profit level. The acquiring co-founder then received an attractive offer for the business from a Private Equity backed Group. Vfdnet assisted in preparing the Group for the Due Diligence process, then project managed information requests from Grant Thornton, culminating in a clean bill of health. The owner of the business was very pleased that the initial valuation was indeed the deal which was completed in August 2017.
“We were delighted that James joined as our Virtual Finance Director in 2012, helping us to shape our strategy, achieve reliable management accounts, and being instrumental in the design and implementation of the incentive schemes for the senior managers. James’s assistance in acquisitions and especially the 2015 Management Buyout was great and really helped get the deals over the line. James experience was also hugely beneficial in preparing and facilitating the detailed Due Diligence by Grant Thornton, paving the way for the successful business sale in August 2017 which was very satisfying as it achieved my objectives.”
Stuart P – Director & former owner.
