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:
- Reduction of the group’s debt by selling businesses that do not meet the minimum return
- Increased efficiency in the divisions & reduction of capital commitment
- Expansion of the management by CFO and establishment of a management circle
- Development of a specification and control system and establishment of a reliable cost / performance calculation as well as rolling budgeting
Results
- 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