Sector: Aerospace manufacturing
Background:
The Company was owned by Japanese investors who also owned two other aerospace companies in the UK.
As separate companies, they were individually dependent on parental funding. The investors requested a review of the options available to them to optimise the performance of their UK interests.
Challenge:
To reorganise the three companies by integrating them into a single trading entity and create a common identity within the aerospace industry which had previously considered them as individual companies.
Solutions:
- Various types of due diligence (financial, legal, HR, commercial etc) was carried out with the support of a local commercial law firm appointed to help with the reorganisation.
- Refinancing of the enlarged organisation with UK funders.
- Communication to key stakeholders and press information released to advise the industry on the changes.
Benefit:
- Greater value and quality of consolidated assets available to utilise as security to funders.
- Economies of scale by dispensing with the multiple performances of support tasks which were concentrated into a head office facility at the largest of the three companies.
- Streamlining of manufacturing operations so that each site became a specialist in specific processes, rather than generalists competing for similar work which had previously been the case.
- Enhanced reputation as all sites benefitted from corporate level quality approvals.
- The company rapidly became recognised as a bigger player within the industry, with the additional gravitas bestowed upon it by the increase in size and enhanced range of its capability, capacity, and range of product offering.
- The enlarged company was later acquired by a Private Equity firm which realised the owners investment.
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