A successful veterinary practice, founded in 2000 and operating across five locations in the South-East, had built a strong brand reputation in the sector, but its rapid expansion in recent years had resulted in significant cashflow difficulties. The group found themselves coming under increasing creditor pressure, including the threat of a winding-up petition by HMRC.
As a result, the group engaged FRP’s Restructuring Advisory team to carry out a high-level business review, which identified one underperforming location. This branch was subsequently closed to relieve pressure across the business. FRP’s corporate restructuring specialists supervised a company voluntary arrangement (CVA) from start to finish, allowing the group to improve the management of its profitability and cashflow.
FRP worked closely with the group’s management and advisers to prepare trading projections and repayment proposals, securing the agreement of creditors. By continuing to trade under the CVA, the group was able to return to profitability and as a result, the business secured a successful early share sale, which has seen all creditors repaid in full and significant value realised for shareholders.
The successful early sale has seen all creditors repaid in full and significant value realised for shareholders.Miles Needham Restructuring Advisory