Business Re-engineering prior to Exit

The Challenge: As a result of injury the business owner was unable to operate the business in person and needed to sell it.  The business was facing unprecedented competition as 2 new large operators had recently opened close by and a number of key corporate clients had relocated reducing the key lunchtime deli volumes. The task was to re-engineer the business to make it more attractive to potential purchasers, while keep the business operational and profitable.

Actions: A thorough review of the business resulted in identifying key actions that needed to be taken including but not limited to:

  • Get operating costs under control
  • Improve the appearance and layout of the store to make it feel more spacious and attractive to both customers and potential investors, including the introduction of outdoor seating.
  • Make pricing more competitive to hold sales volumes while improving the margins.
  • Find new customers to replace those that relocated.

Outcomes: Although sales volumes dropped with the onslaught of the competition

  • Margins increased to a standard 70%
  • Operating costs were reduced by 20%
  • Profits were maintained

Benefits: Within 7 months a potential purchaser emerged and the business was sold in less than 12 months from the outset.