Big 6 energy retailer debt sale and capabilities creation for £20m cash benefit

Challenge

Our client had previously considered selling its domestic bad debts, but was concerned by the technical, regulatory, tax, and operational impacts.

 

We had previously supported the company in several B2B debt sales and it wanted to build its own in-house debt sale capability to cover both domestic and B2B.

 

​Solution

 

We used our tried and tested Debt Sale Management Framework, helping our client to identify segments of debt it wanted to sell, segments it would consider selling, and segments it did not want to sell.

 

We ran workshops across IT, regulation, tax, and operations, helping to get to the bottom of perceived risks and how these could be mitigated, which included deploying our ‘pre-mortem’ workshop to support the project success.

 

We documented our approach and knowledge, and coached a new client Debt Sale team, handing over a Debt Sale Playbook after the successful conclusion of the sale.

Results

We delivered £10m in-year EBITDA benefit, with three-year benefits of £20m.

 

We embedded the capabilities needed within the client’s operation to enable future spot sales and forward flow strategies, now deployed to deliver year on year EBITDA benefits.