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Oxygen Finance carve out and Interim CFO

After a time limited due diligence process a Fund acquired the European and American operations of Oxygen Finance, a leading early payments provider, from the administration of their parent company.

Further information

After a time limited due diligence process a Fund acquired the European and American operations of Oxygen Finance, a leading early payments provider, from the administration of their parent company. Our TACTech partner was engaged by the Fund to carve out the business from administration and conduct a rapid turn around of its infraOxgenstructure and finances.

 

The Client

A multi-billion dollar global investment fund that, with a Private Equity style arm, specialises in niche lending as well as technological and service solutions to the working capital and supply chain finance markets.

 

Challenges

Oxygen offers its clients an early payment solution (supply chain financing) via technology and consultancy services.

Oxygen had gained considerable market share in the public sector with customers controlling several billion pounds of procurement spend and had built a qualified sales pipeline that would likely convert to strong multi-year top-line growth. However, the required investment in infrastructure and technology to scale this growing business could not be matched by the investors and the holding company was placed into administration. The Fund acquired the European and American operations out of administration requiring; significant investment in its finance and operational architecture, an overhaul of its financial modelling techniques at the same time as cutting the cost base.

 

How TACTech Partners Helped

Our TACTech partner undertook a strategic review and then acting as interim CFO focussed on driving costs out, right sizing and retooling the staff, and rebuilding the finance function. 

The business was relocated from London to Birmingham, a near shore finance centric city with lower overall costs but crucially near where the majority of the client-base were located.

In Birmingham a new finance team was hired and a complete overhaul of accounting  processes and technology was conducted along with the development of a new suite of reporting tools to enable both the overall supply chain finance business and cater to the new investor’s requirements.

A full programme of renegotiation was executed with the service providers to Oxygen’s platform business resulting in termination or new suppliers at better terms and lower price points. This action dramatically decreased the cost burden.

Working with the outgoing management team our partner overhauled the financial planning and analysis function by rebuilding the forecast and budget management models. This harmonised the production and reporting of KPIs, syncing forecasting with actual performance.

 

Results, Return on Investment and Future Plans

Despite taking on a business with a bloated cost base, ineffective architecture and financial function our TACTech partner turned the business around. Income had doubled a year later and the operating loss halved. Oxygen was divested by the Fund the year after the engagement, into a new vehicle. Our TACTech partner was re-engaged to manage the financial workstreams for the successful listing of this vehicle on the London Stock Exchange’s Alternative Investment Market. 

 

About TACTech Turnaround Services.

TACTechs broad and deep bench of Executives in residence and practitioners in Operations, Technology, finance, regulations and marketing allows a unique value proposition to quickly understand the core issues in an organisation and transform a failing firm into a profitable venture.

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