Mandate:
Rapid turnaround of a German company operating globally in the GPS navigation segment, but with high operating losses, followed by a successful M&A transaction which secured the company’s further development and preserved as many jobs as possible.
Client:
US private equity company General Atlantic, on behalf of a German GPS navigation company, €150 million
Measures:
Achieved rapid cash flow improvements through revenue turnaround, including a rapid sale of surplus stock
Stabilised the management and sales teams
Introduced strict cost management and daily liquidity management, and quickly and drastically reduced the heavily loss-making US company
Significantly reduced working capital by optimising the supply chain and factoring
Closely co-ordinated with the supervisory board and the private equity portfolio management
Adapted the product range and closely monitored the Far East suppliers
Successfully developed the mobile phone navigation business
Strongly expanded the content & services business
Developed a successful navigation solution for automotive world market leaders
Identified and contacted potential M&A companies, leading to a successful sale to the navigation world market leader, and controlled the post-merger measures in a target-oriented way
Success:
- Achieved rapid revenue stabilisation and market leadership in navigation solutions for smartphones
- Achieved successful cash flow management without additional capital requirements
- Achieved positive annual results after just one year
- Successfully sold the German company to the world market leader, while preserving almost all jobs in Germany
