“Super energetic, very easy to get along with, and working everywhere we needed them”.
The Challenge Ending an Era Wisely
When founding owner John Arkcoll decided to leave his company Eltech, he knew his five sons already working in the business would have plenty to say about it. He also knew that the company’s drift into minimal profit meant a big course correction was needed before his sons would have the businesses he wished for them.
John’s son and Eltech MD Anthony Arkcoll had heard of Quantum through fellow business owners. He knew they had industry expertise, family business experience, and expertise in valuations and succession planning. He realised quickly they also had the modern tools to shake up old thinking and drive new profitability.
The OpportunitiesStructure for Success
Quantum started by unravelling two decades of old accounts, done by traditional accountants. More than $10M in group turnover across multiple divisions, with family and staff spread across the business, and plenty of history in the contributions by the brothers meant valuing equity positions was a nuanced affair.
Quantum relished the challenge, and leveraged its expertise to help the 5 brothers split the group into 3 businesses – all with agreed valuations taking in that complex history.
The ChallengeThe Family that Profits Together
As planned, Anthony Arkcoll retained Eltech and engaged Quantum to drive increased profitability after the restructure. Using Quantum’s strategic planning, mentoring and accounting services, tough decisions like narrowing the product range yielded results. 90 day sprint methodology drove new 13 week cashflow projection cycles, in turn opening the way for new bank finance.
The finance meant more stock, a second warehouse, and room to employ new key workers. It all drove profitability exactly as planned, and Anthony and his brothers have never looked back. And they still get together every Christmas for the family BBQ – with beers all round.