Sector: Building Cleaning
Revenue: ca. EUR 24 M
Employees: 1800
Initial Situation
- The industry offers very few unique selling points
- The competition is primarily about the price
- Due to private obligations, the shareholder makes large distributions
- In the past, many participations had to be written down because they were not actively managed
Procedures and Services
- Creation of a continuation concept based on IDW S6
- Development and implementation of a comprehensive program of measures:
- Use of natural fluctuation in the overhead area
- Introduction of a flexible personnel pool for 2 profit centers
- Selective abandonment of objects with a negative contribution margin II
- Merging of regional sections to reduce overhead
- Reduction of material costs i.a. through adjustments to leasing vehicles
Results
- Ensuring the existing financing up to year +2
- Implementation of a nearly tax-neutral haircut on the pension of the main shareholder amounting to EUR 0.5 million
- Recovering an industry-standard return within 24 months
- Implementation of 80% of the planned measures with an annual effect of over 500 kEUR
Source: Concentro