case study – 7 Layer
Preparing for investment and buy-out of shareholder
Background
7Layer is a specialist software firm, based in Cheltenham but with a global client base, that develops systems and applications for the cash logistics sector. Established in 1999, the company had been through ten years of growth and already had an excellent reputation and impressive client bank when F-works first started to work with them in July 2009.
The issue
Throughout the first ten years, 7Layer’s financial management had worked on the same basis as many small to medium enterprises – they produced quarterly accounts, monitored their cash flow and reviewed what they had spent historically. The company had now reached the stage where they knew they needed something more than this. The recession meant it had been a difficult year and they were uncertain as to what the future would hold.
In addition, 7Layer were negotiating with a potential investor and needed professional help to present the company finances in the right way.
How F-works helped
Working with F-works gave 7Layer a much better understanding of their current and future financial position. F-works took 7Layer’s financial data, turned it into reasoned projections and presented it in a format that external ‘finance people’ would accept and understand.
F-works then attended meetings with 7Layer’s potential investor to explain the figures and rationale behind the projections. The investor was keen to proceed but, in the end, was unable to raise the finance needed in the timeframes required.
However, 7Layer’s Managing Director decided to invest in the company himself. F-works worked with him to value the company and provided advice on the purchase of the co-owner’s shares.
F-works now act as 7Layer’s part-time finance director on an ongoing basis. This includes:
- providing financial information to improve 7Layer’s understanding of the profitability of projects; and
- ensuring there’s an awareness of how current trading conditions or other issues may impact on the long-term financial performance of the business.
“F-works’ help was essential throughout the internal investment in 7Layer. We had got to the point where we needed professional advice to work out exactly what the business was doing and where it was going. The proper financial diligence they provided was invaluable. Above all, they are great to work with and, with F-works’ advice, we can be confident that 7Layer has the good financial management needed to ensure the ongoing success of our business.”
Lee Maisner, Managing Director
7Layer
