Case Study 1 - The Car Wash Problem
The client had been operating successfully for 5 years, slowly building a small network of high end and fully compliant carwash sites throughout England, and
although he operated no more than 25 sites, he was still one of the larger operators in the market.
Wandwaver’s task was to create an exit strategy for the owner manager, one that satisfied his need for an income in retirement and gave him suitable reward for his efforts in creating the business in the first place, the client also wanted to retain complete control of the business until he retired so a merger or a sale
to a competitor did not seem attractive.
Wandwaver worked with the client and created an exit strategy built on growth, specifically we agreed to approach a number of national organisations on the
client’s behalf with a joint service proposal. As a result of Wandwaver’s innovative approach the client is in discussion with a national Company to install over 300 co-branded sites in the UK, Wandwaver also approached another supplier in a related sector as a result of which 2014 will see the launch of a
whole new concept in car care provision. The client is happy and having committed to a 5 year plan with his partners he can now see his exit point
clearly along with the various rewards he set out to achieve
" The Wandwaver team helped focus us on some real goals, its made an incredible difference to us and I would recommend the Wandwaver Way to everyone ......GM - 2012"
Case Study 2 -The Cash Flow Problem
Cash is king, more so even than Nett profit in the short term. It’s a controversial view, but those of us who deal with banks regularly know that today’s next big
thing is tomorrow’s stupid idea. At this moment in time banks want to see cash in hand, and that was client B’s big problem. Having set up the business over 10 years ago, they quickly gained a strong foothold in restaurant supply, but like many before them the empire was built by offering extensive credit to their customers and by the end of 2012 the business was slowly choking on its own debt.
Wandwaver’s task was to reduce the days sales outstanding numbers from a starting point of over 250 to something the bank would feel comfortable supporting, the number 60 was mentioned by an enthusiastic bank manager.The client’s main concern was the effect on the customer base of a heavy handed debt collector contacting clients and how the business might end up with no clients at all; equally the bank wanted results yesterday and couldn’t really care about much beyond the end of day balances.
Wandwaver carried out a ledger risk assessment; we estimated that the client had previously to write off nearly 7% of total sales values in bad debt, however the actual cost to profit was in excess of 35%, when the client realised that they were doing one job in every three for free they quickly saw that things needed
to change and agreed to the Wandwaver credit control plan. Over a period of 12 months Wandwaver reduced the DSO from 250 to 49, we collected so
much old debt that the client was able to wipe out bank borrowings and now funds the business with cash, it did cost the client a small number of their clients, they lost 7 who simply wouldn’t accept that the client wouldn’t fund their businesses any more, but as they all had average debtor days over 200, they were no loss at all. The client now has control of his cashflow, over 75% of his customers pay within 40 days, anyone not paying in 60 goes on stop and stays
there till the bill is paid
The clients bank are now more than happy to lend the client the money he no longer needs The total Nett cost of Wandwaver’s efforts
are less than zero as the cash recovered and interest savings greatly exceed the sums billed to date.
" I'm glad I listened to Wandwaver, they have added so much cash to my business I don't use my overdraft at all now" ..... RW - 2013
Case Study 3 - The “Whole Business” Problem
The widest ranging task yet undertaken by Wandwaver, the clients business had grown out of a building Company first established in 1906 and by the new millennium the list of products and services offered by the client was both lengthy and overly complex
Asked initially to review the clients business processes the dispassionate view of an outsider soon saw a business in need of streamlining, a process in its-self which actually saw turnover and headcount increase, with a number of long serving staff due to retire and with the introduction of new technology a new business process plan had to be created, trained in, and, led to operation, this was done through Wandwaver’s Interim Management team working alongside the business acting, as both mentor and project manager when required
New staff were recruited to new roles, and, along with new business processes adopted led to a much slicker orginisation more suited to meeting their clients’ needs quickly.
Ledger reviews and subsequent project management led to an 11% decrease in unit cost and a reduction of over £650,000 in sales ledgers outstanding, almost 30% of the original total. The client now has significant cash in hand to support an already strong balance sheet.
" Wandwaver saved my business"....C McD.....2013
