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The
client was an owner-managed business specialising in output
management software (one of only five in the world at the
time). Originally the client company was a hardware company,
but software allowed greater flexibility and sophistication.
In an attempt to float the company, the client had severely
over spent, resulting in £0.5m negative net worth and stalled
growth. When Collingwood arrived, the company was the subject
of a hostile takeover bid.
Collingwood
was hired as CFO to restore the client company to profitability
and growth, and to prepare for a further attempt to float.
The main changes made by Collingwood were:
- Immediate
overhead cost reduction. A 10% reduction in costs was achieved
without effecting growth or quality.
- Introduction
of confidential invoice discounting (CID). This allowed
the client the funding to continue development.
- Decentralise
sales. A new country-centred approach was adopted for European
sales instead of relying on achieving sales from the company
HQ in Hampshire.
- Raise
VC funding. £4m was raised through a leading UK technology
VC.
After
eight months and 115 days Collingwood involvement, the client
company became profitable, started to grow again at the expected
rate, and is so successful that it is due to IPO this year
(about five years after Collingwood involvement). The client is now an exceptional success and has been sold to Bottomline Technologies for $22m.
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