Creating New Revenue Streams to survive Economic Uncertainty
No-one in business is immune to the wider economic landscape.
And for this manufacturing company, a sudden downturn in orders was due to something out of their control – Brexit.
The large retailers that made up their customer base were nervous and simply stopped ordering.
While the issue – Brexit – was out of our client’s hands, their approach to business was still firmly in their control. They recognised that the reliance on one type of product to one type of customer was always going to put them at risk when that market became nervous. The way forward was to diversify their product range across different markets, making them less susceptible to the whims of any given industry.
Managing growth through acquisition
The Academy Partnership took a pivotal role in the diversification process, assisting the company directors in back-to-back acquisitions. In the first instance, we undertook due diligence investigative work of companies on the acquisition short-list, and supported professional advisors in structuring the take-over transactions.
For the newly acquired businesses, we wrote business plans and prepared forecasts.
And for the parent company, we implemented the needed change of infrastructure to accommodate the new businesses smoothly.
Today, our client has several revenue streams generated from a diverse product range.
This makes them financially much more secure during periods of economic uncertainty.
Background
- Company type: Manufacturing/Fabrication/Coach Building
- Annual turnover: £800,000
- Number of employees: <5
Challenges
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Drop in orders due to Brexit.
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Undiversified product range.
Our input and the outcome
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Acquisitions advice.
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Writing business plans.
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Forecasts of newly formed entities.
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Due diligence investigative work.
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Advice on infrastructure changes.
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Result: Multiple and differentiated revenue streams.
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