Vantage Performance acted as the Chief Restructuring Officer (CRO) for this project.
50 year old Asia Pacific business over exposes costing $20M.
A group operating throughout the Asia Pacific region turning over $107M p.a. had been operating successfully for 50+ years. Due to a downturn in its Australian markets, and in an effort to avoid downsizing the business, management decided to tender for 3 sizeable projects at very skinny margins also requiring the group to hire a number of new “untested” supervisors and tradesmen. This decision cost the group dearly as the inexperienced site supervisors and tradesmen mismanaged the 3 new projects resulting in losses on these 3 contracts of circa $20M.
As a result the group made a net loss of $10M for FY16.
The business had breached its $32M in banking facilities and had an immediate working capital requirement of $7M.
How we turned things around.
Our first step was to conduct a strategic review of the group to assess their options whilst implementing a business stabilisation plan. We developed an initial working capital plan comprising some 64 initiatives totalling $54M which covered the immediate working capital requirement of $7M plus the forecast cost to complete the loss making contracts.
Following our strategic options review the decision was taken to sell/exit the loss making construction contracts in Australia, sell one of the overseas businesses, sell 2 properties and surplus items of plant and equipment to pay down bank debt and meet the working capital shortfall.
We negotiated a standstill agreement with the major financiers along with a 4 month equipment finance holiday and assisted the CFO in negotiating an ATO plan, Payroll Tax plan and a range of creditor payment plans.
The restructure and turnaround plan was successful and the group has just reported a profit of $8M for FY17, an $18M turnaround in 15 months.
A very pleasing result as we were able to save $30M in equity for the family and 250 jobs.
My philosophy is that there is always a way to solve a crisis, as long as you’re engaged early enough.
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Michael is the founder and CEO of Vantage Performance.
Michael is passionate about helping businesses solve their biggest challenges and seeing the positive impact this has on people’s lives.
“In a time of financial stress, maintenance of the confidence of financiers in a client becomes more challenging even with a robust workout plan. Michael’s experience and strong reputation with financiers positions him well to bridge this confidence gap between financier and client. This, coupled with his advice in the preparation of a turnaround plan makes him a key player in any successful business turnaround.”
Oliver Martin, CFO, Smithbridge
“We engaged Michael and the Vantage team to provide a strategic review and implementation plan to assist us re-position our business after a challenging period. The team’s knowledge, commitment and professionalism were well regarded by us and this was instrumental in achieving our goals for the review and our business going forward. The credibility, discipline and momentum provided by the team was everything we hoped for and I am very happy to recommend their work.”
STEPHEN BARNARD, CEO, NATIONWIDE HIRE
“Michael ran the project well and on time. The outcome was increased financial support from our Bank to allow us to implement a business sale without cash flow pressures.”
JOHN POWER, GM, PROSERPINE SUGAR
“Michael and I have worked on a number of matters together for mutual clients. I have always found him to have a detailed understanding of the key drivers that impact on the ultimate outcome, and an unwavering focus on obtaining the best possible result for his clients.”
LUKE MOUNTFORD, PARTNER, HOPGOOD GANIM LAWYERS
“Whenever I identify that a client needs assistance to guide them through tough financial circumstances, I have no hesitation in recommending Michael. I have worked closely with Vantage on a number of turnaround and profit improvement assignments and they are the best in the business.”
SCOTT BUTLER, PARTNER, MCCULLOUGH ROBERTSON LAWYERS
“CBO Telecommunications sought the advice and services of Michael and the Vantage team last year when the mining industry made it very difficult through extended payment terms for SMB’s to participate in our day to day business. Michael not only brought a wealth of knowledge and industry peers to the table for us to navigate a path forward, he also managed the implementation of short and medium term strategies. We had a very successful outcome and continue to strive to be a thought leader in our market.”
Mark McGregor, Managing Director, CBO Telecommunications.
“Michael has made a fantastic contribution to the turnaround at SubZero Group. His support, drive and understanding of what it takes is greatly appreciated.”
Joe Clayton, CEO, MRS Plc
“Michael is a genuine turnaround expert. Michael will get to know your business very well and formulate a creative and practical plan to overcome the difficulties you face. Michael is also adept at adjusting and varying the strategy as things progress and change.”
Paul Betros, Partner, Hopgood Ganim
“Michael and the team at Vantage Performance have completed several assignments for me. They have always exceeded expectations with attention to detail and an intimate knowledge of the business and industry they have been asked to assess. If they don’t know an answer they find it and provide practical solutions to get the best possible result.”
Russell Morrison, Director, Westpac Bank
Michael Fingland has 20 years’ experience in business transformation, restructuring and turnaround.
Moving from a Chartered Accountancy background into corporate advisory he has worked in a wide range of industries from mining services, retail, agri, civil, transport, manufacturing, telecommunications, engineering to construction.
Michael has been awarded the “Australasian Turnaround Professional of the Year Award” by the Turnaround Management Association and a number of his client engagements resulted in Vantage Performance winning the “Turnaround of the Year Award” ten times.
Michael is a columnist for The CEO Magazine and regular contributor to other publications such as the AFR and BRW.
Qualifications
Chartered Accountant
Bachelor of Business, CQU
Awards
Australasian Turnaround Professional of the Year Award by the Turnaround Management Association (TMA).
Ten of his client engagements resulted in Vantage Performance winning the “Turnaround of the Year Award”.
Successful turnaround and restructure that led to a refinance of the Groups debt facilities totaling $17M, an increase in earnings of $5.2M and an improvement in enterprise value of $15M.
Strategic review and turnaround for a diversified agribusiness with annual turnover of $110M. Initiatives resulted in a 31% improvement in enterprise value increasing from $87M to $115M. The recommendations also resulted in a $30M improvement in working capital including a capital raise of $22M.
Strategic review and turnaround of a mining services company resulting in an increase in enterprise value of $39M. Key actions included revenue growth, stakeholder management, working capital management, internal systems controls, tender/contract governance, $30M capital raise and vendor due diligence.
I add value to clients by helping to relieve financial pressures on the business, allowing them to concentrate on running their company.
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Kevin works out of the Brisbane office and is responsible for Strategy & Execution services nationally. He is motivated to help businesses to solve their critical challenges whilst preserving and enhancing the underlying business.
“Kevin is a totally dedicated and tireless champion. His efforts to see us achieve our goals were boundless. A total and consummate professional with great attention to detail, and completely candid and always tactful with his advice. Added to all that Kevin is a true gentleman and I have no hesitation in recommending him to anyone needing expert guidance and advice.”
CEO, Labor Hire business
Kevin, a CPA, brings more than 18 years of corporate restructuring experience to the firm. He has proven himself to be a proactive and successful Chief Restructuring Officer; having led start-up, turnaround and high growth organisations.
He has worked on a number of assignments across a range of industry sectors, both locally and nationally. Kevin’s advisory and restructuring experience includes independent business reviews, development and implementation of financial restructuring, recapitalisation and refinancing strategies.
Kevin’s passion for collaborating with clients to develop robust strategies and assist clients to stay on track during the implementation phase makes him well-qualified to lead Strategy & Execution services nationally.
Prior to joining Vantage Performance Kevin worked for two national corporate recovery firms, which included a secondment to Perth, where he played a key role in establishing the practice in Western Australia.
Kevin works with clients and acts in interim roles for companies on projects involving:
Profit and performance improvement
Working capital and cash flow management
Crisis management
Corporate turnaround and balance sheet restructuring
Business strategy and strategic execution plans
Business transformation
Continuous improvement
Corporate advisory and risk management
Debt raising and refinancing
Due diligence
Interim management.
Qualifications
Certified Practicing Accountant
Bachelor of Business, Accounting, Queensland University of Technology
Awards
TMA Turnaround of the Year 2010 and 2012
Memberships
CPA Australia
Turnaround Management Association
Australian Restructuring Insolvency and Turnaround Association (ARITA).
Award-winning restructure and business improvement of a fruit juice manufacturing business with annual turnover of $25M involving business strategy, profit improvement, working capital management and capital raising.
Construction Turnaround
Award-winning restructure and business improvement involving a strategic review, working capital management, financial restructuring and profit improvement of a construction company with an annual turnover of $20M.
Turnaround Manufacturing Division of Listed Company
Strategic and management review of a manufacturing plant with annual turnover of $120M.
