READ OUR CASE STUDY FROM A COMPLETE COMPANY RESTRUCTURE FOR A EUROPEAN MULTINATIONAL

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: 

1. 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) 

2. Implemented Cash management optimisation program – reducing working capital needs through carefully planned inventory program, strengthening debtor’s collection and extending terms with key creditors 

3. Divested non-core assets to stabilise and create a robust business 

4. Implemented Manufacturing efficiency gains program within the manufacturing process 

5. Implemented Cost reduction initiatives – focussed on reducing excessive spend, prioritised purchases

6.  Redesigned Organisational Structure – simplified the business by removing unnecessary layers of management and keeping only the best staff 

7. Re-engaged the market – focussed on new product development; creating new routes to market and improved market offering to clients

8.  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.