What was the issue?
The business was experiencing serious cash flow difficulties and this was resulting in increasing pressure from its supplier base. New investment was needed to allow the business to normalise its cash position and allow the business to continue trading without the threat of a supplier or other creditor taking action.
How did KPMG help?
We worked with the business to help them prepare more credible forecasts and cash flows. The forecasts and cash flow were then presented to the key stakeholders in the business to demonstrate the investment that was needed and to show that the business could have a successful future. As a result, the business secured new investment and obtained the time needed for management to execute a turnaround plan.
“We assisted the business by helping prepare more robust forecasts and cash flows, which were then presented to key stakeholders. By producing credible forecasts, the business was able to secure the investment that was needed in order for management to try and turn the business around.”
“KPMG validated the processes of the business and helped in negotiations with creditors. Their patience and understanding were very much appreciated; I doubt we would be trading successfully today without their help.”
Health & Fitness company