Two General Further Education (GFE) colleges both affected by funding cuts and sector reforms received Area Review recommendations to merge. This was a complex situation requiring a high level of financial restructuring support across a diverse stakeholder group, and within a tight PMO application timetable.
Summary
- Proposed merger of two GFE colleges
- Colleges were complying with area based review recommendations
- Substantial debt burdens
- Both affected by funding cuts and sector reforms
- Efficiency opportunities to be leveraged
Challenges:
- Legacy debt
- Complex estates situation
- Operational inefficiencies
- Management team needed strengthening
- Substantial restructuring support needed to secure viable, sustainable merged entity
- Complex lender matrix, both for existing debt and new loans
- Tight timetable to submit strategic business plan and PMO application
- Lack of skills/ knowledge in dealing with lender / funder expectations
How we helped:
- Engaged with PMO and Bank
- Guided Management at critical point, immediately ahead of PMO submission
- Provided constructive challenge of strategic plan, forecasts & key assumptions
- Helped shape structure of support needed from PMO
- Contributed to key elements of PMO application form
- Provided support to Management post submission
- Ongoing provision of post merger support; critical for lender / funder confidence
Results:
- Successful application to PMO submitted
- Supported by a robust business plan
- Merger completed
- Bank and other lender positions secured, and confidence increased
- Stakeholder positions and expectations clear
- Clarity over future direction for merged entity
- Exciting estates proposition; powerful proposition for learners
Benefits at a glance:
- Clear, credible application to PMO secured funding offer
- Management received clear, timely and practical advice, at critical point
- Constructive challenge aided delivery of a robust plan
- Support and guidance enabled management to make sound decisions, at pace
- Expertise of dealing with funders in distressed scenarios
- Stakeholder group have confidence in successful implementation of plan
- Continuity of turnaround advice post merger to support delivery of plan