Engineering business - case study

• Sector – Manufacturing and export
• Annual turnover – c. £4m
• Number of employees – 40+ 

Situation

The business operated two main divisions:

• Education
  • Manufactured educational technology supplying mechanical engineering and research equipment for universities and technical institutes; and
• Marine 
  • Designed and manufactured specialised instrumentation and test facilities for marine research.

In addition to Education and Marine sales, the business also secured large scale turn key projects from Governments and education establishments around the world

Approach

Following the identification of a significant funding requirement which the company was unable to overcome, Mazars immediately commenced an accelerated sale process.

Interest was expressed in relation to both divisions and following the appointment of Administrators (and a short period of trading), sales were completed in relation to the Education division (assets and intellectual property only) and Marine division (assets and certain employees).

International engagement

In respect of the Marine division, the company was part way through the design phase of a significant contract with a government institution in China.

Given the sale secured of the Marine division, there was the potential for work to continue in relation to the Chinese contract which could also have led to a significant realisation for the Administration estate.

Mazars utilised the restructuring team at our Hong Kong office to explain the UK Administration process and to lead with the initial engagement. This support was instrumental in facilitating a meaningful dialogue with the customer which culminated in a week-long UK visit by a delegation to fully explore, face to face, the options available and thereby maximising the chances of a realisation for the estate.

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