Overview
Procuret Group operated an innovative B2B lending platform that provided ultra-automated invoice financing for business transactions. The platform’s proprietary technology allowed for near-instant credit assessments and quick settlements, supported by a sophisticated algorithm and self-service customer tools.
Despite its technological strengths and market potential, the company faced financial distress, leading to the appointment of Olvera Advisors as Voluntary Administrators to preserve value and facilitate a recapitalisation process.
Challenges
- Liquidity Constraints: As a startup, Procuret’s cash flow position was strained by the high cost of operations, leaving limited liquidity to meet short-term obligations.
- Operational Inefficiencies: The business suffered from operational inefficiencies that increased costs and created barriers to achieving sustainable profitability.
- Pre-Profit Business Model: The business was in its pre-profit stage, which is an expected phase for many technology startups. However, it struggled to reach the critical scale required to cover fixed costs.
Turnaround Plan
Olvera Advisors was appointed as Voluntary Administrators to safeguard the value of the business and explore restructuring pathways. The focus was on stabilising operations, maintaining stakeholder confidence, and securing a recapitalisation or sale outcome through the Voluntary Administration process.
Key initiatives included:
- Engaging directly with the company’s secured lender to evaluate sale and recapitalisation options, including the integration of the loan book and platform to maximise third-party interest.
- Liaising with third parties to ensure continued operations and preserve enterprise value during administration.
- Conducting an expedited sale of business campaign that generated strong interest and multiple offers.
- Negotiating the successful sale of the business to Lecca Group, ensuring continuity for part of the business and retention of key systems.
- Managing the DOCA process, securing creditor approval for a proposal that provided a superior return compared to both liquidation and alternative offers.
Results
Olvera’s administration and recapitalisation process achieved a strong outcome for all key stakeholders. The successful sale and DOCA allowed for Procuret Group to continue their operations, retain staff, and preserve intellectual property.
Additionally, creditors received a significantly improved return compared to a liquidation scenario.
Key Drivers of Success
- Strategic stakeholder engagement: We actively collaborated with lenders, clients, and potential buyers to ensure transparency and confidence throughout the process.
- Preservation of technology value: By safeguarding the proprietary lending platform, we maintained investor interest which underpinned the business’s successful recapitalisation.
- Efficient sale campaign: We developed a targeted approach that attracted competitive bids and maximised the final sale outcome.
Key Takeaway
Through a focused and collaborative approach, Olvera Advisors successfully guided Procuret Group through its financial hurdle. The recapitalisation preserved its innovative lending technology, secured new ownership, and achieved the best possible outcome for employees and creditors.
