READ OUR CASE STUDY FROM A COMPLETE COMPANY RESTRUCTURE FOR A EUROPEAN MULTINATIONAL
RESTRUCTURING AND
TURNAROUND ADVISORY
>> CASE STUDY
CLIENT
European Multinational
INDUSTRY
Manufacturing and Retail
START OF PROJECT
2018
LENGTH OF PROJECT
24 months
MANDATE
Full Restructuring and Turnaround Advisory of Subsidiary
REGION OF DEPLOYMENT
Southern Africa
Mandated by European client to take control of, and turnaround sizeable Southern African based manufacturing business (550 employees; $41mil turnover) whose key market is focused on the local and international building, construction & retail market.
As of mid-2018, the consolidated losses across for the entity averaged c. $7.6mil per annum and the business experienced cumulative losses of c. R$38mil over the prior 5-year period.
Took control of the entity and drove the commercial turnaround of the business, alongside the management team through addressing key systemic issues. Our hands on approach included:
Realigned the culture of the organisation towards operating as a high-performance collaborative team that takes accountability for performance (creating SMART objectives for all managers)
Implemented Cash management optimisation program – reducing working capital needs through carefully planned inventory program, strengthening debtor’s collection and extending terms with key creditors
Divested non-core assets to stabilise and create a robust business
Implemented Manufacturing efficiency gains program within the manufacturing process
Implemented Cost reduction initiatives – focussed on reducing excessive spend, prioritised purchases
Redesigned Organisational Structure – simplified the business by removing unnecessary layers of management and keeping only the best staff
Re-engaged the market – focussed on new product development; creating new routes to market and improved market offering to clients
Renegotiated commercial terms with key customers
The business has been restructured, reinvigorated and sustainably turned around. It now has a defensible long-term business strategy in place and a stable management team to take the business into the future.