Client Description: A privately owned MBO £30m turnover media agency and corporate communications business. Reason for the assignment: The business was in the process of being sold but due diligence had found that the standards of reporting and control were so poor that the sale had been held off. At this point the finance director resigned and there was an immediate need to restore the finance function and restart the sale negotiations.

Description of the assignment: The two owner/managers were anxious, staff morale was low and the financial state of affairs was worse than originally understood. An immediate hands-on approach was needed; a list of tasks with deadlines and responsibilities was prepared.

Key tasks were managing cash, improving basic controls and reporting such as correct income recognition of WIP and proper accruals. The bank overdraft had been exceeded. The due dates for tax and corporate reporting had been missed, incurring penalties, and suppliers were beginning to impose constraints.

The owners’ and managers’ engagement in improving and turning round the company was essential. The finance department of five was weak and needed support. The first step was to restore order and confidence. The next step was to ensure that the business could maintain its position of meeting its liabilities as they fell due. The final step was to prepare the company for sale.

Benefits realised: The finance function became an integral part of the business. Confidence and control was restored, reporting was improved and both the owners and buyers were able to rely on the results. Cash flow was managed. Staff morale improved (two temps in the finance team were persuaded to become permanent and are there today!) The business had someone who could lead, communicate and hand over to the new owners. The business was successfully sold at a potential value of about two times turnover.

This was only achieved by having an interim at the right time. The owners, investors and bankers were all suitably fulsome in their praise; he had made a significant difference to their own situation.