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
Successfully
negotiated concessions from secured creditor groups
in US and Europe
Restructured
business to be profitable
Successfully sold
individual business units to strategic buyers at
multiple
times the original valuation estimates
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
Implemented cash
management system
Managed bank
relationship to ensure lines remained in place
Assessed and
recommended on alternatives for capital injection
Company
went public through RTO
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
Implemented
business drivers dashboard
Developed
liquidity planning tools
Successfully
completed crisis management; negotiated bank work
out
