Integrated Construction Solutions

Rapid expansion strategies can create significant value, but when market conditions reverse, highly leveraged growth models can quickly place businesses under severe financial pressure.

This case study explores how a business that had grown through a combination of organic expansion and the acquisition of three businesses faced a major financial and operational crisis following an industry downturn.

The group experienced a sudden $22M reduction in revenue, resulting in losses of approximately $5M. The rapid shift in trading conditions placed substantial pressure on cash flow, banking relationships, and management capability.

At the time of engagement:

• The business had breached its banking facilities

• Immediate working capital requirements totalled approximately $3M

• Bank debt had increased to approximately 8x EBITDA

• The board and management team were under significant operational and financial pressure following the rapid growth cycle and subsequent downturn

Vantage Performance was engaged to conduct a strategic review of the group, assess restructuring options, and implement an immediate crisis management and stabilisation program.

Key initiatives included:

• Development and execution of a business stabilisation and crisis management plan

• Implementation of an aggressive working capital management strategy, improving cash flow by approximately $5.1M within the first 100 days

• Delivery of a comprehensive two-year turnaround program

• Reduction and restructuring of operating costs across the business

• Negotiation and implementation of approximately $10M in creditor payment arrangements

• Negotiation of a $4M debt write-off with a major creditor

• Securing of a new $4M working capital facility to partially refinance the lead financier

• Project management of a full refinance of lead banking facilities totalling approximately $17M, completed six months ahead of plan

A key component of the engagement was restoring confidence across stakeholders while repositioning the business around sustainable financial performance and operational discipline.

The Outcome:

• Revenue growth from $75M to $100M

• Earnings improvement of approximately $5.2M

• Increase in enterprise value of approximately $20M

• Successful refinance and stabilisation of banking relationships

• Preservation of approximately 350 jobs

The engagement was recognised by the Turnaround Management Association, with the business and advisory team receiving the “Turnaround of the Year Award” in the Large Company category.

The result wasn’t simply recovery, it was the successful repositioning of the business from financial distress to sustainable long-term growth and value creation.

This is where Vantage Performance operates: guiding businesses through complex restructuring, refinancing, and turnaround environments with disciplined execution and strategic leadership.

Learn more: vantageperformance.com.au

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