Our client is a cyber incident response and security consultancy firm that helps organisations investigate, respond to and recover from cyber-attacks, data breaches and related crisis events.
We were initially approached as the business was facing financial pressure, urgently seeking investment to address existing debt obligations and stabilise the business. Like many founders navigating the equity funding world, our client had hoped that securing investor capital would allow him to repay creditors. However, as is often the case, investors were not willing to provide funds solely for the purpose of creditor & debt repayment.
Once the client understood this reality, we worked closely with management to evaluate the available restructuring options. After careful consideration, we advised that a Company Voluntary Arrangement (“CVA”) would provide the most effective route to stabilise the company’s finances while protecting value and giving the business time to rebuild and pursue growth opportunities.
We guided the business through the CVA process, preparing the necessary proposal documentation and liaising with creditors. The CVA was successfully agreed in late December, allowing the business to emerge in a stronger, more resilient position.
Since completion of the CVA, the business has become significantly more attractive for investment. We already had introduced the client to a number of investors from our network, with two of these indicating that subject to a successful CVA, they would look closely at funding. At the time of writing, we have one group offering terms, with proposed investment ranging from £250,000 to £500,000 — a deal which we hope will proceed to completion in the weeks ahead and support the company’s next phase of growth.
