Debt Restructuring
Business Challenge
The client was an Irish property development company, which had built more than 100 houses in a large regional town, but was having difficulty selling the remaining 22 houses. The company was under significant pressure from their lender, who needed to be convinced that their business would continue to be viable.
Our Approach
Farrelly & Mitchell carried out a competitive analysis of the remaining housing stock and found that although the houses were of slightly higher quality than their equivalents in the town, they were significantly more expensive.
Farrelly & Mitchell worked with the client’s auctioneers to kick off a new sales campaign to sell the remaining houses. This included articles in the national press highlighting the advantages of the houses and strength of the local economy. It also included ads in the regional, national and online media and a renewed selling campaign on the part of the auctioneer.
Farrelly & Mitchell created a business plan for the client and used it to convince the client’s bank that they still had a viable and potentially profitable business.
Benefits & Value
As a result of the campaign, the client’s has been able to sell a number of units and has offers for most of them.
Most importantly, the client has regained the confidence of its bank by showing that not only can they build high-quality houses, they can also sell them in a slowing market.
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