Under-performing or distressed companies

Companies can find themselves in significantly weakened positions caused by external, competitive or internal changes.  At times, issues have accumulated through neglected or draining non-core businesses, mismanagement or poorly executed strategies.


Client Situation
 

Project Scope


Outcome

           
  A large US-based machine manufacturer with substantial European operations was in significant financial difficulty after years of losses.  Secured creditor groups were exerting intense pressure  
  • Identified and analyzed performance issues
  • Assessed company product and business unit portfolio
  • Evaluated decision systems
  • Built business financial model
  • Validated cash flow, implemented cash management and controls
  • Planned and implemented restructuring
  • Developed enterprise value ranges
  • Initiated divestitures, negotiated and executed
  • Performed transition executive roles
 
bullet Successfully negotiated concessions from secured creditor groups in US and Europe
bullet Restructured business to be profitable
bullet Successfully sold individual business units to strategic buyers at multiple
times the original valuation estimates
bullet Achieved full recovery for secured creditors
           
           
  Despite substantial revenue growth in early years, this business was experiencing low growth, a lack of profitability and a cash flow squeeze  
  • Identified and analyzed performance issues
  • Evaluated reporting mechanisms
  • Validated cash flow, implemented cash management
  • Reviewed capital structure & alternatives
  • Performed transition executive role
 
bullet Implemented cash management system
bullet Managed bank relationship to ensure lines remained in place
bullet Assessed and recommended on alternatives for capital injection
bullet Company went public through RTO
bullet Hired CFO
           
  This business had been impacted by major capital equipment downturn in the US from 2001 to 2003.  Liquidity concerns mounted as the bank lines came under pressure.  
  • Identified and analyzed performance issues
  • Advised Board on range of management issues
  • Built business financial model
  • Validated cash flow, implemented cash management and controls
  • Planned and implemented restructuring
  • Initiated and executed plan to attract investors
  • Performed transition executive roles -crisis management of treasury and bank relations
 
bullet Implemented business drivers dashboard
bullet Developed liquidity planning tools
bullet Successfully completed crisis management; negotiated bank work out
bullet Secured new bank lines
bullet Further on-going relationship

 

           
 
 
 
 

 

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