From Investment to Turnaround and Back Again
The Stakes: Global Potential vs. Operational Collapse
In early 2024, Love Writing Co sat at a dangerous crossroads. Despite acquiring prestigious global licenses for Paddington and PawPatrol, and achieving clear product-market fit resulting in interest from investors, the business was ‘withering on the vine’ due to severe cash flow problems and a catastrophic difference of opinion on direction between the two co-founders - straining the business.
Initially engaged to translate their vision into financial forecasts securing a £1m co-match investment offer, it was unable to close the round due to the operational disconnect:
Financial Forensics Required: The accounting systems were littered with errors, and management information for decision making was totally flawed.
The Debt Trap: The business was leveraged with expensive, short-term debt featuring interest rates well in excess of 25%.
Supply Chain Friction: Legacy supply chain issues and underestimated costs for license partner products had generated a cash spiral - the business had expanded too quickly.
Relationship Paralysis: A gulf between directors had made agile decision-making impossible, and had spread resource too thin.
The Intervention: 6 Months of Financial Forensics and Fixing
Audeo Fortis was engaged to perform a high-intensity Strategic Diagnostic to determine business viability:
Phase 1: Straightening the Management Information: We spent six months performing a desktop review of the books, reallocating the chart of accounts, and identifying ‘red-rated’ serious profit-impacting errors and cash flow stressors.
Phase 2: The ‘Best Interests’ Warning: In August 2024, the business needed a critical refinance package to rescue cash flow, against the opinion of one founder. We guided them through all options, including nuclear, to get best outcome for all parties.
Phase 3: Restructuring for Survival: We moved to produce a short-term strategy to eliminate activity that didn’t drive cash, got cut throat with bloated costs and focused the deliverables for the team that would ensure business survival.
Phase 4: Stopping the Bleeding: We pivoted the investment effort away from the co-match and sought to attract instead a temporary turnaround focused investor that could right the ship and get them back on track for achieving global expansion.
The Results: A Clean Slate for Growth and Room to Breathe
By taking an unconventional line in being willing to tell the founders that their current path was irrecoverable, we forced the decisive action needed to save the IP and brand long-term.
Co-Founder Exit: The intervention facilitated the exit of a co-founder which was in everyone’s best interests, enabling the remaining leadership to regain control.
Dispute Resolution: Resolved critical friction within the supply chain and addressed VAT compliance risks that had previously made the business uninvestable.
Turnaround Investment: By straightening the management information, we enabled the business to present a viable trade to new investors, and sought buy-in for a fully formed short to medium term plan.
Operational Independence: The business transitioned from a fragile state to an entity with a clear Action Roadmap for UK and US expansion and to get back to venture investment for growth.
“I can confidently say James has been a game changer for our business. He brought real clarity and structure to our financial strategy, helping us improve forecasting, strengthen cash flow management, and make better strategic decisions. What I valued most was his ability to translate complex financial detail into practical, commercial guidance.
He played a key role in getting us investor-ready by refining our financials, stress-testing projections, and ensuring we were fully prepared for diligence. His calm, measured approach gave us confidence and credibility at every stage.
James is not only technically strong but also a trusted strategic partner. I wouldn’t hesitate to recommend him to any growing business looking for high-quality financial leadership.”
— Surlender Pendress, Founder of Love Writing Co