Underperforming Businesses

Underperforming Businesses

Pragma provides an independent evaluation of all commercial aspects of the business. This allows Lenders to take rational decisions on how to proceed in terms of company strategy and future funding requirements, based on detailed, expert analysis of the fundamental drivers of company performance. Our work can be undertaken in tandem with a financial due diligence provider, if required.

Past operational evaluations include:

Vivarte / Lenders syndicate – provided an impartial review of an IBR of the Vivarte business

HSBC & Jessops – developed a revised business plan, resulting in HSBC taking ownership of the business through a debt for equity swap

RBS / Barclays & Clinton Cards – proposed a new business plan, which was accepted and implemented by the Lenders and new management, until other events overtook the process

Consortium of banks and a leading homewares retailer – ongoing evaluation and interrogation of management’s business plan, allowing the Lenders to consider a range of solvent and insolvent solutions

Allied Irish Bank / Peine Group – identified commercial opportunities beyond those suggested within a conventional insolvency project and working in conjunction with management were able to exceed the bank’s initial recovery estimate by a factor of four. The core business was successfully sold and is still trading.

Our approach

We work with management to understand, validate and confirm the company’s operating model that supports the current and future business plan. We consider all aspects of the business.

Our conclusions are relayed back to key stakeholders, together with recommendations about alternative or superior strategies. At that stage, we are often also involved in implementation of new initiatives to improve performance.

We approach these difficult situations with a realistic but open-minded approach, combining our operational retail experience with consumer research and financial analysis. We reach logical, independent conclusions using all available evidence and our detailed knowledge of retail. This allows the correct decisions to be made for both the company and its key stakeholders.

Our work includes:

Research into the customer and concept

Investigation of the market and competitive landscape

Trading analysis by product, channel, location type and geography

Evaluation of the management organisation and capability

Assessment of the supply chain, buying & merchandising function, marketing, and systems

Underperforming Businesses Case Studies

Know More

Like to know more?

If you’d like to get in touch simply drop one of our team an email or call us. We’d be delighted to have an initial exploratory conversation with you.