Access Platform Rental Company
Revival Solutions was initially approached by the main lending bank to a medium-sized, private equity sponsored, access platform rental business that had fallen into administration.
There was disappointment that the business had fallen into administration as the bank believed there was still a strong underlying business case with potential to retain the company staff, restructure the business and ultimately maximise recovery to the bank.
After significant due diligence and the recruitment of a key management team of industry and finance professionals, a deal was agreed between Revival and the existing stakeholders of the business.
The transaction preserved the jobs of over 70 employees and resulted in the asset finance stakeholders of the original business receiving a full pay-out.
The directors of Revival were the primary equity investors, but encouraged key members of existing management to participate as well. In the two years following the transaction, the business was transformed through improvements in a number of areas:
- Implementation of cost efficiencies
- Substantial investment in staff training
- New customer focussed initiatives to drive sales growth and improve quality of service
- Additional support services
During the third year of trading, the business was acquired by a leading quoted access rental company, delivering approximately 21 times return to shareholders.
Specialist Retail Leisure
Revival Solutions was introduced to this client, an individual who had recently left a trading division of a public company in the leisure & lifestyle industry, by an intermediary. Due to a significant downturn in sales brought about by a contracting market, the division was considered non-core to the group and was to be closed down. Revival worked closely with the client, assessing the viability of its business plan and, after detailed due diligence, approached the board with an offer to buy the company.
However, a good relationship was forged with the client, which subsequently led to further discussions regarding a recently formed leisure supplies company. Following a detailed review, it was concluded that the business model was sound, but it required a trade and credit facility that was more flexible and innovative than the current one. Revival agreed a partnering equity stake, purchased the current provider’s debt and supplied a new increased credit line to allow the business to grow within the UK and Internationally.
Commercial Vehicle Rental Company
Revival Solutions was asked to assist a distressed commercial vehicle rental company to find solutions to a number of market driven and financial challenges it was facing at the time.
After a detailed review, it was established that the business could not trade out of its cash flow problem, brought about by a significant bad debt, and the only way forward was for the business to enter an administration process.
The business assets and associated debt were purchased by Revival and its investors for £2.6m, whilst guaranteeing the novation of finance and trade agreements to ensure continuity of trade. The transaction enabled the majority of the original financial stakeholders and trade creditors to receive payment in full.
The business has experienced significant year-on-year growth since the transaction and now has a solid asset base and good profitability. The directors of Revival retain their original equity position and continually support the business, bringing valuable industry contacts and strategic advice to drive operational improvements.
Specialist Transportation Company
Revival Solutions was introduced to the company, which specialises in the transport and lifting of modular buildings, to assist in the debt purchase and restructure of the business out of administration.
After a short period of positive negotiations with the Administrator, the purchase of the business was agreed. A key element of the transaction was ensuring adequate funding was in place from day one, to provide time to work with the existing management team to restructure the business. Revival Solutions arranged a £1.44m debt facility to finance the purchase of essential vehicles and equipment.
During the restructuring process, Revival helped establish new credit lines with trade and finance suppliers to support the transformation.
Revival Solutions retain a major equity position and board representation, providing continual operational and strategic support to maximise market opportunities during its growth phase.
Commercial Vehicle Body Builder
Revival Solutions was recommended to a potential client to review a new business plan. After further discussions and a detailed understanding of the business model, the directors of Revival Solutions agreed to take a majority equity stake in the business and provide a £150k debt facility along with guaranteeing trade creditor payments for the first 18 months.
The business is currently outperforming its original forecast and has recently completed a move to significantly larger premises to support its growth ambitions.
Revival Solutions continues to support the short term funding of the business, whilst working closely with the management team, drawing on its industry experience to identify innovative products and solutions that meet the needs of its growing customer base.
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