SHM was acquired by the Gordon Brothers Group in 2004 as a turnaround project. Corrective action had been undertaken to address the financial shortfalls in the business and attain financial stability. Although the business was now cash positive it remained fragile and wasn’t meeting its acquisition expectations. Fundamental questions therefore need to be asked.
How we helped
The focus of the assignment was on a number of key objectives:
To conduct a market assessment and internal appraisal of the current business.
Identify the key issues facing the business and the options available.
Outline potential strategic options for SHM within the Group context.
Provide a summary plan for SHM for discussion with the US Parent Group.
Outline and agree the key actions for an operating plan for the business.
Articulate and agree key objectives with measurable KPI’s, within this operating plan.
The Insight with Passion Effect
The challenge was to support and guide the executive team through an evaluation of potential options within extremely tight timescales. A full assessment was undertaken of SHM’s relative strengths and weaknesses within the context of the current trading environment and the competition faced.
A series of alternative scenarios were evaluated from; exiting the business, to completely revamping the SHM operating model, with the financial best case, worst case and most likely case for each scenario being calculated and compared.
Within 10 weeks IWP guided the executive team through a creative and analytical process to evaluate the potential strategic options. The outputs delivered allowed the Group to make an informed decision. An option was selected and the restructuring of the business commenced within 12 weeks from the start of the engagement.