Davos Group: how to finance exponential growth

Grupo DAVOS is a group of B2B service companies, specialised in Private Security and Facility Management. In just four years, the group has developed significantly as we can see from the great results obtained in 2022: a turnover of 15 million euros and more than 800 employees. The basis of their business success is:

  • Experience: the teams have over 40 years of experience in providing security and facility services.
  • Trust: the company is solvent, with representative clients and holds a quality certificate.
  • Flexibility: as a medium-sized business, it can negotiate in person and with the capacity to respond to customer needs quickly.

It was precisely this spectacular growth that caused the company a cash flow crunch, which was successfully resolved with the advice of Kaizen Consulting, as the CFO, Inocencio Arroyo, explains in this interview.

– What are the financial requirements for growth like Grupo Davos?

– Each sector has its own dynamics. In ours, the private security sector, having such a large growth generated certain financial needs in the short term, a cash flow tension that responds to the investments and the cost of personnel required to implement our services. Responding to certain contracts with the level of demand that we impose in the Group requires an advance in investment or a significant injection of capital, given that in 2022 we have tripled our turnover compared to the previous year. This success must come with adequate planning and sufficient resources.

– Why did you seek the advice of Kaizen Consulting?

– We work with several financial agents. In the case of Kaizen, they were recommended by a client of ours who gave us good references and was very satisfied. We got in touch at the end of October, and in November we started working together. The first thing we asked them to do was to look for short- and medium-term solutions using their financial resources in traditional banking. Together, we made an organisational and liquidity plan, mainly for the short term.

– And what did they offer you?

– They immediately opened the door for us to sit down with the banks, but they also presented us with many other options: with other funders and with new tools that could help us. In the end, we opted for a non-traditional financing solution. Traditional bank providers are more restrictive when it comes to offering credit, and we felt better suited to the offer of other financiers with more flexible solutions.

– Had you considered alternative financing before?

– Yes, we had. But to access these financing solutions, it’s much better to rely on an expert. At Kaizen Consulting, they have the connections and the knowledge to reach out to them and find the right solutions for your needs. It’s the expertise that gives you peace of mind and the right advice for a tailor-made solution. We found companies willing to finance public and private circulating funds, who offer creative solutions for invoice discounts or assignment contracts that are advanced as loans… In short, more flexible solutions.

– Was the solution also quick?

– Very. With Kaizen Consulting the response was very quick. We started working together in November, and by the end of December, we had the solutions in place and had solved most of our short-term liquidity problems. The Kaizen system is very focused on success, and we have established a system of ongoing collaboration. They continue to look for financial solutions and options for us because they know us and what we are looking for.

– What is the next step for Grupo Davos?

– We have branches in almost the entire peninsula, but one of our objectives is to continue growing to have a stable presence throughout Spain. Now we want to consolidate. We have a large portfolio, with a majority of private clients. Among the most prominent are media groups, pharmaceutical companies and some multinationals.

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