Securing liquidity and preparation of a restructuring plan

Mandate:
SSecure and control liquidity and develop a restructuring plan in the post-acquisition phase

Client:
Production, automotive, steel processing in Spain, private equity portfolio company, with 45 million in sales

Measures:

Systematically reduced costs in the company through negotiation of contracts, sourcing and cancellation of redundant positions
Analysed existing calculations and introduced new contribution margin accounting, and integrated the model in SAP
Adjusted the product portfolio and eliminated products with insufficient margins
Introduced a system for shorter storage times through co-ordination between purchasing, sales and production planning
Secured liquidity through factoring, sale & lease back, disposal of unused capital assets and sale of an investment
Sourced new suppliers
Prepared and implemented a social plan

Success:

The restructuring led to break-even on an EBITDA basis after only 5 months, whereas the company had previously incurred substantial losses
Reduced costs by more than € 2 million
Reduced dependency on individual stakeholders

Contact:

Nikolai Kesting

Quantenberg 28
40822 Mettmann