KordaMentha KordaMentha is an Australian advisory and investment firm that provides specialist forensic, real estate, turnaround / restructuring and investment management services. The business was formed in April 2002 by Mark Korda and Mark Mentha. Located at
Level 24, 333 Collins Street, Victoria, Australia.
Phone: +61 3 8623 3333

Delivering revenue through turnaround and interim management

A poorly executed response to an external market shock can adversely impact a business for years. Partner Chris Martin outlines how KordaMentha Corporate undertook a high-level review of this fashion wholesaling business and implemented a number of measures to dramatically improve their revenue and ongoing growth.


Trucks
 
'This fashion wholesaling business was experiencing declining sales performance with a commensurate reduction in cash flow and working capital levels. The headwinds encountered during the global financial crisis, exacerbated by the collapse of the company’s major financier, had resulted in management embarking upon an ineffective cost-cutting exercise. While this improved financial performance in the interim, it impacted the viability of the enterprise in the long term.
 
Following an introduction from a major shareholder, we undertook a high level review of the business and recommended that the company’s short term action should be to:
 
  • implement management operating systems to streamline the design-to-delivery process
  • improve debtors and cash management
  • clarify and document the company sales strategy
  • create an interim CFO position to provide support to the CEO who had previously been relying on a financial controller for financial analysis and support.

We framed these measures within a wider set of values, approaching each objective with the intention of minimising costly operational errors, enhancing the quality of service provision and delivering improved discipline and corporate governance to the organisation.

 

The result was a dramatic improvement in revenue through clarified go-to-market and brand strategy. In addition to providing a solid platform on which the business could grow, our initiatives delivered over $3.5 million in potential EBIT uplift.'


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