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ADDING
VALUE IN RECEIVERSHIPS
Clients who put all their eggs in
one basket inevitably run risks ° especially
in an economy which focuses on price and quality, and where the buyer
adopts a dominant position. In that environment the buyer also runs
risks, especially if there is a heavy reliance on any particular supplier.
The situation of Land Rover and its insolvent chassis-maker belies
belief, in an industry normally known for commercial prudence,
and is well reported.
The situation that arose at Land Rover can
happen elsewhere ° and
has done as you can see in the attached article from the Times
of 31 January 2002.
Phil Revill, partner at P & A, and acting as the Administrator
of the Company, D F Grundy Limited, was able to renegotiate, upwards,
the very fine margins which had worked against the companyØs prosperity
over a period. By improving the margins and cash flow, an orderly
wind down of the business was achieved, for mutual benefit, albeit
was not possible to save the business.
If you have clients with a dominant supplier
or business position, and where fine margins are causing risk
positions in profitability or potential problems in supplies
and would like to talk through the options with Phil Revill,
please do so on 0114 275 5033.
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