Sector: Hardware store, (wholsale) machine construction & trade
Revenue: ca. EUR 30 M
Employees: ca. 280

Initial Situation

  • Group of companies with diverse business areas and cash-side losses
  • Bad financing of a long-term investment through short-term lines
  • Gradual increase in financing costs due to increasing line utilization in the course of economic development
  • The group has only one remaining "cash-generating unit" & largely utilized financing capacity
  • Overall inadequate leadership within the group, change of management and partners & stakeholder crises

Procedures and Services

  • Development and implementation of a comprehensive program of measures:
  1. Reduction of the group’s debt by selling businesses that do not meet the minimum return
  2. Increased efficiency in the divisions & reduction of capital commitment
  3. Expansion of the management by CFO and establishment of a management circle
  4. Development of a specification and control system and establishment of a reliable cost / performance calculation as well as rolling budgeting


  • Divesting loss-making business areas including debt relief via asset deal
  • Reduction in working capital intensity and significant improvement in capital speeds regarding inventories
  • Realization of a balanced total cash flow ex-special effects in the main phase of the reorganization
  • Stabilization and securing of free liquidity
  • Active stakeholder management through operational activities as a mediator


Source: Concentro