Case Studies

Corporate finance in practice.

The case studies below demonstrate Duceris Group’s approach to corporate finance. They explore how we assess the financial issues involved and support the client’s decision.

Sector: Business services
Service: Mergers and acquisitions

Preparing A Maintenance Business for an Ownership Transfer

The owner of a commercial maintenance business is preparing to retire. Revenue comes from scheduled maintenance contracts and additional repair work, with several major customer relationships managed personally by the owner. Prospective buyers need to understand the earnings the business could sustain after the handover.

Duceris Group separated contracted maintenance income from less predictable repair revenue. The financial assessment included the cost of replacing the owner’s operating responsibilities and examined the renewal dates of major contracts. Sale preparation brought these findings into a documented earnings assessment, followed by a comparison of indicative offers. That comparison addressed payment timing and the conditions attached to any deferred consideration.

The output is a negotiation brief connecting the proposed price to the responsibilities being transferred. It allowed the owner to assess the cash payable at completion and the exposure retained through later payments. Defined handover arrangements gave buyers a basis for evaluating customer retention, with the legal provisions addressed by the appointed lawyers.

Sector: Consumer and retail
Service: Financing advisory

Financing A Retailer’s Seasonal Stock Requirement

A homewares retailer sells through its website and a small store network. Orders for its main seasonal range require supplier deposits several months before peak sales. An existing borrowing facility is due to expire while the company still expects cash to be tied up in stock.

Duceris Group’s assignment started with a weekly cash forecast covering purchasing through to the settlement of seasonal sales. The model allowed for returns and tested the effect of slower stock turnover. Financing options were assessed against the peak cash deficit and the expected reduction in borrowing after the selling period. The comparison also examined borrowing limits linked to eligible inventory, including the treatment of aged stock.

A revolving facility whose maturity extends beyond the expected cash collection period was one option to assess. The funding request included a downside case and a schedule of expected repayments. This gave management a basis for lender discussions while making the effect of weaker sales explicit; funding remained subject to lender approval.

Sector: Technology and software
Service: Business valuation

Valuing A Software Business for a Shareholder Exit

A subscription software company is preparing for a minority shareholder’s exit. Reported revenue includes annual subscriptions and implementation fees, while recent growth reflects higher spending by several large customers. The remaining shareholders need an assessment that explains which earnings can reasonably support the proposed share value.

The valuation assignment separated recurring subscription income from project-based fees and examined retention by customer group. Duceris Group assessed cash flow after ongoing product-development expenditure and tested the effect of losing a major account. A discounted cash flow assessment was considered alongside relevant market multiples, taking differences in scale and profitability into account.

The deliverable was a valuation range with a documented reconciliation from enterprise value to equity value. The analysis treated upfront subscription receipts alongside the remaining service obligations and examined the rights attached to the departing shareholder’s interest. This gave the parties a financial basis for discussing price and payment terms, with the eventual agreement remaining subject to negotiation.

Sector: Industrial businesses
Service: Financial planning

Testing The Timing of a Production Expansion

A specialist components manufacturer is considering an additional production line to supply a larger customer programme. The customer has provided volume forecasts, but binding purchase orders cover a shorter period. Equipment deposits and commissioning expenditure would fall due before the new line begins generating receipts.

Duceris Group modelled the investment from installation through to expected operating capacity. The assessment distinguished committed orders from forecast demand and include the effect of start-up scrap and lower initial productivity. A delayed commissioning case tested the additional borrowing requirement. The work also examined the cash tied up in materials before finished components are accepted and paid for.

The analysis supported consideration of a staged investment decision. Management assessed the minimum order volume needed to cover the additional operating costs and determined whether expected demand supports the capital outlay. The model identified the liquidity needed if commissioning slips, allowing the board to set commercial and funding conditions before authorising the equipment order.

Discuss A Situation Relevant to Your Business

If one of these examples reflects a decision you face, we can discuss the circumstances of your proposed assignment. The starting point is the financial question you need to resolve.