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Software Publishing Case Study |
The interim CFO from Link restructured this company to secure the investment of its shareholders
Company profile:
AIM listed developer of on-line conferencing and E-Learning solutions
The problem:
Market valuation reduced from £76m to £3m, shareholders wanted to ensure that the company survived
The issues:
- Cost base well in excess of turnover
- Turnover minimal and declining
- Survival time 6 months maximum at current
- Cash burn
- Onerous leases
The actions:
- Reduced headcount from 80 to 20 initially
- Acquired small business for shares to add sales resource
- Reviewed product range
- Concentrated on completing development of one line
- Negotiated lease exits
- Downsized further to 6 staff and relocated
- Sold balance of business and reduced to cash shell
- Negotiated acquisition of company in different sector
The results:
- Profitable business acquired
- Existing shareholders investment secured
- New shareholders brought in
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