Engagement Leader

Gary FraserAssociate Partner,

Restructuring 0131 527 6635

Business Sale Process

Scott FarquharSenior Manager,

Restructuring Advisory

0141 300 5887

Stakeholder Management

Shona CampbellSenior Manager,

Restructuring0131 451 7782

Restructuring Advisory Case Study: Project Ormonde (Early Options)On Tuesday 14th May 2013, KPMG’s Restructuring Advisory Team in Scotland completed another successful Early Options assignment.Client Ormonde was a consulting business operating in the transport planning and engineering sector, with annual turnover of c£10m derived from 9 offices across the UK, employing around 150 staff . With significant exposure to the public sector, the business had endured reductions in turnover of more than 50% since 2008 and had become loss making. Internal operational restructuring initiatives had offered some limited success, however the business had been wholly constrained by a large and growing pension liability, which it was unable to fund.The growing pension deficit had created material uncertainty for employees and trade partners alike and threatened the Company’s ability to secure new work. Following consultation with key stakeholders, a decision was taken to market the business for sale in an accelerated process to secure maximum value whilst preventing further asset value erosion. On 8th March 2013, KPMG were engaged by Client Ormonde to deliver their packaged Early Options solution. The KPMG team mobilised by setting up a data room and preparing the Group’s Information Memorandum in a two week preparatory phase. Again, making full use of KPMG’s proprietary Early Options Investor Network, the team were able to market the opportunity to in excess of 100 parties, and generate substantial interest.The sale process was run across a 7 week period, which concluded with the purchase of the business and certain assets of the Company by an AIM-listed turnaround investor. The transaction was effected through a pre-pack, which saw all employees transfer to NewCo, whilst the debtor book was retained by the Administrators for the further benefit of creditors.For the Company and its employees, KPMG’s unique Early Options product has ended several months of uncertainty and secured its future. For other key stakeholders, the process has maximised the available asset recoveries.

If you would like to learn more about KPMG’s Early Options product, and what KPMG’s Restructuring Advisory Team can do for you, please get in touch.Click here to go to KPMG's Early Options Website

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