Background
Our client is a forestry management and consultancy company. The owners had an ambitious plan for an acquisition strategy in order to increase the size and value of the business.
The Issue
While the owners were keen to proceed with an acquisition strategy, the recommendation was that the business was not yet ready, and a few building blocks in their business model needed to be strengthened. In addition, a succession plan to back a new corporate structure needed to be crafted in order to allow the senior partner to allocate future shares to the current junior partner.
The Outcome
Ampios helped our client to review and modify the profit model, in order to increase margin. Our cost accounting method revealed a flaw in the cost allocation and pricing approach. Rectifying this allowed profit to increase.
A management and financial plan was developed to guide our client through increasing return on capital employed over a 5 year period to prepare for a future acquisition strategy at the level they were keen to operate at.
