Client Case Studies

Bentleys Corporate Recovery

Investigative Accountants Report – Manufacturing enterprise with turnover of over $20,000,000

Bentleys were engaged by the Board of Directors to undertake a financial assessment.

The client operated a national manufacturing business with turnover in excess of $20 million per annum. The extended drought conditions had negatively affected its key market.

Bentleys appointment involved assessment of the financial position in the immediate term. This included assessing the short to medium term cash flow position, identifying the key profitability drivers, and reviewing the Balance Sheet structure. Bentleys identified opportunities to provide the company access to the working capital necessary to fund inventory holding and anticipated trading losses (including review of current and anticipated future borrowing).

As a result of Bentleys analysis we delivered practical solutions to fund ongoing operations in the short term and improve the longer term business viability. 

Investigative Accountants Report – Manufacturing enterprise with turnover of over $30,000,000

Bentleys appointment to this client involved the preparation of a report and provision of recommendations in relation to a risky client. The client operated a national manufacturing business with turnover in excess of $30 million per annum.

The business was in a competitive, traditionally low margin environment and had a secondary dependency on currency fluctuations. This was combined with a management team that was unstable and unwilling to change.

Bentleys presented several risk management options that our client could adopt whilst executing a low impact exit strategy. 

Pre-lending Review – Motor vehicle and forklift parts

Bentleys were appointed by this client to conduct a pre-lending review of certain assets held by two separate motor vehicle parts wholesalers and retailers. These companies were seeking funding from our client in order to undertake a merger of their successful businesses.

Following onsite inspections of the records, stock and other assets held by the companies, a comprehensive report on our findings was prepared to allow assessment of the viability of providing the necessary funding. Ultimately, the companies were able to secure the funding they required and are continuing to trade as a consolidated entity. 

Financial Viability Assessment – Community retail enterprise

Bentleys were engaged by the organisation to provide a comprehensive financial and operational overview of the enterprise.

We undertook an assessment of the effectiveness of the management structure, provided a detailed market analysis, considered the financial structure and operations of the business including costing controls and systems and assessed asset management polices.

In addition, we assessed the current financial accommodation facilities, human capital resources and corporate governance policies and procedures.

Finally, we provided the client with a clear action and implementation plan of Bentleys recommendations for business improvement strategies. 

Financial Viability Assessment – Government Authority

Bentleys have been on the panel of Accountants to provide financial Assessment Services to a major Government Authority for over a decade.

We provide assessments of financial reports on contractors tendering for specific government capital works projects.

These reports are assessed against the government approved guidelines and identify any matters of concern regarding either their current or future financial capacity.

Where additional investigation for a potential contractor is warranted, Bentleys provide more indepth financial assessments. Advice is also given to the Authority regarding interpretation of Australian and International Accountancy Standards, forensic analysis of financial reports or general advice in relation to issues identified in the financial reports provided by contractors to meet the requirements. 

Voluntary Administration / DOCA – Group of national long haul transport companies

Following Bentleys appointment as Administrators to this case, we continued to trade the business and undertook a business analysis assessment that identified key difficulties. With the issues identified, a restructuring plan was immediately developed and implemented to enable neutral trading during employees. Unsecured creditors received a return of between 30 and 100 cents in the dollar. 

Receivership on behalf of top tier bank – Four longline fishing vessels & four eastern bluefin tuna licences

Due to significant legislative changes in the industry over recent years, combined with poor levels of fishing stock, the sale of these assets was anticipated to be difficult.

The assets were valued at less than 50% of the secured debt. A targeted international sale strategy was formulated which resulted in the sale of two vessels “off shore”. Given the circumstances in the industry and the depressed market, the secured creditor achieved a return on the secured debt of 65% after costs. This represented a significantly greater return to the bank than was initially expected. 

Appointment as receivers following ongoing dispute – Livestock located on rural properties

The appointment arose over a family dispute.

The engagement included the ongoing care of livestock, and their sale at market.

Due to the nature of the appointment, Bentleys were required to sensitively negotiate with key stakeholders in relation to their competing interests. Ultimately, the stakeholders agreed to an outcome. 

Investigative Accountants Report – Large international entity FMCG ('fast moving consumer goods')

The company had turnover of approximately $620 million.

Our client had a very risky position given that its exposure was approximately $45 million. The appointment involved monthly financial monitoring and risk management with a view to developing a low impact exit strategy. The company was able to secure refinance which enabled our client to implement its exit strategy. 

Receivership – Unregistered managed investment scheme

Bentleys were appointed by ASIC as receivers of this property, and subsequently were appointed liquidators of the company. The director absconded overseas prior to our appointment. The appointment involved forensic verification work and tracing the flow of funds into international jurisdictions.

Due to allegations of fraud and various other offences the director was tracked down with the co-operation of the Canadian Mounted Police.

As a result of our investigation team and with the assistance of ASIC, Bentleys were able to recover a substantial amount of investor’s funds. Investors and unsecured creditors received a return of over 70 cents in the dollar. 

Receivership on behalf of top tier bank – Regional hotel motel

The secured creditor was looking at a significant shortfall on valuation. Due to an upgrade in hotel facilities and gaming machines, there was an increase in turnover during receivership trading (6 months) resulting in almost full return to the secured creditor. This result was well in excess of the anticipated return. 

Receivership on behalf of top tier bank - Inner city industrial property

The company was the owner of two industrial sites, consisting of 14 industrial lots close to the CBD and a commercial property in the outer CBD.

Management was unwilling to assist us with the Receivership, due to a relationship breakdown with the bank prior to our appointment.

The secured creditor was faced with a significant shortfall based on commissioned valuations. Despite the director’s best efforts to thwart the sale, Bentleys sale process produced a realisation value well above the bank’s expectations. 

Receivership on behalf of financier - Three 45ft yachts and associated moulds

A trustee company operating a partnership with ownership rights in a yacht building business appointed us when a dispute arose between one of the directors and the secured creditor.

Due to our extensive industry experience, Bentleys were able to prepare a marketing strategy and sale process which enabled us to realise three 45ft yachts for values close to the original contract price. The result achieved was far in excess of the secured creditor’s expectations.

Aged Care

Feasibility study, cash flow analysis and forecasting for start-up aged care facility

In this project, our client was considering an $18M ‘green fields’ aged care development. Our engagement involved:

• A market feasibility analysis for the proposed location. Our market feasibility analysis reviewed areas such as the underlying property market and associated accommodation bond pricing, competitor analysis, community consultation into required features at the new facility and comprehensive demographic analysis. 
• Preparation of detailed cash flow analysis for the construction period and utilised scenario analyse to identify the financial outcomes resulting from key variables. 
• Development of longer term (three years post construction) operational profit/loss, balance sheet and cash flow projections for the new facility – taking into account the start-up period of operations.

Feasibility study, cash flow analysis and forecasting for aged care facility with co-located retirement village

In this project, our client was considering the relocation of their existing aged care facility, with the addition of a co-located ILU development.

Under instructions from external project managers and building construction experts, Bentleys: 

• Conducted a market feasibility analysis for the proposed location. Our market feasibility analysis reviewed areas such as the underlying property market (houses and units) and associated accommodation bond (aged care) and entry contribution (ILU’s) pricing, competitor analysis, community consultation into required features at the new facility and comprehensive demographic analysis; 
• Prepared four alternative pricing cash flows for the proposed development, detailing the cash flow implications of differing pricing and construction strategies. 

Feasibility study and cash flow scenario projections

In this project, our client was considering the long term viability of its current operations, in respect to its rural remote location and its provision of services for a large number of concessional residents. Bentleys were contracted to initially develop a 5 year profit and loss, balance sheet and cash flow projection based on its existing operations. This exercise indicated that the facility would not be viable over the long term.

Bentleys then constructed projections for a proposed redevelopment of the facility and options for different resident mixes to identify impact on long term viability.

Our work with this client continues.

Feasibility analysis/sensitivity analysis for a proposed redevelopment of RACS and ILUS

Bentleys were initially contracted by this client, to undertake a feasibility analysis of a proposed redevelopment of an existing RACS and ILU operation. This included preparing 5 year profit and loss, balance sheet and cash flow projections. After the client determined the construction project was feasible, Bentleys were again contracted to perform a sensitivity analysis. This entailed developing several potential scenarios and running these through the financial model to determine the outcomes. This process concluded with a best case, worst case and base case for comparison purposes. This gave the client a level of comfort that even with the worst case scenario; the construction project would be viable.