Navigating Uncertainty After Acquisition
Case Study – Rossco Site Services
When Paul Holmes and his partners acquired Rossco Site Services in late 2024, the future looked promising. But as the construction market slowed and a major customer was lost, financial clarity became critical. This case study shows how Tectona helped the business gain control, improve forecasting, and avoid potentially serious cashflow challenges.
The Business
Rossco Site Services manufactures and supplies cabins, offices, platforms, stair systems, tanks, and other specialist products for construction and industrial environments.
After more than 20 years of steady growth, the business was acquired in late 2024 by HSH, an investment group established by Paul Holmes and a team of experienced business leaders with ambitions to build a portfolio of engineering and manufacturing businesses.
The acquisition appeared well timed. Rossco had a loyal customer base, a strong reputation, and a long history of consistent growth.
Then the market changed.
The Challenge: When Growth Assumptions No Longer Hold
Almost immediately after the acquisition completed, activity across the construction sector began to slow. Projects were delayed, investment decisions were postponed, and customer demand became less predictable.
“We quickly went from a period of being overwhelmed with too much work to suddenly there wasn’t any at all.” Reports Paul Holmes.
What had previously been a comfortable cash position became much tighter.
The acquisition had been structured around continued growth, but changing market conditions exposed weaknesses in the original financial modelling and assumptions.
“The information and cashflow modelling that was done up front was probably inadequate, and there were flaws in some of the assumptions that had been made.”
The directors understood the financial statements, but they lacked the detailed modelling and commercial finance expertise needed to understand what might happen next.
The Turning Point: Seeking Clarity Before Problems Became Crises
The leadership team recognised they needed more than traditional accountancy support. Their accountants were competent and reliable, but what the business needed was proactive financial insight and scenario planning.
“We needed somebody looking at this from a commercial finance perspective.”
Having known Tectona Managing Director Mark Nicholls for several years, the team approached Tectona for support and were introduced to Finance Director, Red.
After visiting the business and understanding the challenges, Redvers (Red) Best quickly became an extension of the management team.
The Solution: Building Visibility, Forecasting, and Financial Confidence
Tectona’s first priority was to create a much deeper understanding of Rossco’s financial position.
Red developed comprehensive financial and cashflow models, incorporating:
- Existing financing arrangements
- Deferred acquisition payments
- Invoice finance facilities
- Revenue forecasts
- Working capital requirements
- Future business scenarios
“He brought a very comprehensive modelling package and spent time building all of our processes and information into it.”
The result was a far clearer picture of where the business stood and what actions needed to be taken.
At the same time, Rossco increased its commercial activity, investing in business development, marketing, and customer acquisition to replace lost revenue and rebuild momentum.
The Impact: Avoiding a Potential Cashflow Crisis
One of the most significant challenges emerged when Rossco unexpectedly lost a major customer responsible for more than 30% of annual revenue.
Without early intervention and improved financial visibility, the consequences could have been severe.
“Had we not had Red’s intervention, we could easily have been another three months down the road and the situation could have become much more acute.”
The improved modelling enabled the team to:
- Understand future cash requirements
- Take corrective action earlier
- Strengthen commercial activity
- Improve working capital management
- Avoid the need for emergency funding
“I think we could easily have sleepwalked ourselves into real pain.”
Alongside this, tighter credit control processes helped reduce payment times from more than 60 days to approximately 31–32 days, significantly improving cashflow.
The Outcome: Confidence to Move Forward
With stronger financial insight and more robust forecasting, the business was able to navigate a difficult market period while continuing to build for the future.
Today, Rossco has a much clearer understanding of its financial position, greater confidence in its decision-making, and a stronger platform for growth.
“Red has transformed our financial understanding, cashflow modelling, and the way we understand what’s going on in the business.”
Conclusion
For Rossco Site Services, Tectona provided far more than financial reporting.
The partnership delivered the clarity, foresight, and commercial insight needed to steer the business through a challenging period and make better decisions before problems became critical.
“He’s brought a real depth of experience and knowledge in an accessible and affordable way for the business.”
If your business is growing and you need greater clarity, confidence, and control over your financial future, Tectona Partnership provides experienced part-time CFO and Finance Director support to help you scale with certainty.
If you’d like to explore what that could look like in practice, a short, informal conversation with Tectona can often surface insights long before any commitment is made. Email mark.nicholls@tectonapartnership.com and we’ll call you back within 48 hours to have a free, no-obligation conversation to understand your needs and advise you of the best course of action.