Case Study – Electrical Contractor

A long established Gold Coast electrical products distributor and contractor was at cross roads.

The owners were nearing retirement age and at the same time beginning to believe that their business of thirty-five years was probably headed for closure.  They did not see any value in the company as it was no longer profitable.

They had no heir to succeed them and were becoming somewhat depressed regarding the future.

Australian Business Clinic was commissioned to review the business and provide an opinion on the likely future of the business.

The Australian Business Clinic believed that the business performance could be transformed, making it a very attractive proposition for a buyer.

We calculated that this position could be attained within three years, and we provided an opinion on the potential sale price for the business.

We reviewed buying practices, contract labour charges and the method of preparation of accounts to include the cost of sales and a meaningful gross profit resulting from a well-structured sales and expense budget for the following three years. We also helped them better understand the language of accounting and the benefits of a clearer knowledge and significance of monthly financial reporting.

Monthly Accounts are now being managed by Australian Business Clinic.