RESTRUCTURE
CASE STUDY 3


Interim Management; Accounting for Non-Accountants

Background

The business had a turnover exceeding $40 million per annum, with more than 30 employees in Brisbane Sydney and Melbourne. The business owner was sales-driven and acknowledged that the business had grown larger than he could comfortably manage. Also, he was concerned that he had provided many personal guarantees to suppliers and lease companies.

Levi inspected the Sydney operation and conducted a quick assessment of the available financial information and held discussion with the owner and management, to determine where profits and where losses were being made, and where cash flow could be generated, and then, offered some simple but effective strategies to improve performance.

Levi made arrangements for a service provider to prepare a fresh budget for each division and monthly management reporting information (integrated balance sheet, profit and loss, and cash flow) for each division and on a consolidated basis, and other information, so that the performance of each business division could be better observed and managed.



Conclusion

A one-page report for non-accountants was tailor made and generated daily for the owner and key management, so that, they could assess daily, the performance of each division, using indicators agreed between the owner, management and Levi. Monthly management reports were also generated.

Thereafter, a succession plan was developed in the event of death or incapacity of the owner, or if the owner wanted to achieve a MBO or trade sale.

Take a moment to call David Levi at 02 9016 4113 or email dlevi@leviconsulting.com.au. And let us help you get your company to where it needs to be.
This case study is not a substitute for formal advice concerning your circumstances. Liability limited by a Scheme approved under the Professional Standards Legislation.

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