Case Study: Turnaround Management & Restructuring

Industrial process
and control technology company

Following a management buy-out a low capital base was present. After the economic crisis has engulfed the company, its shareholders recognized that immediate action is necessary.

In a first step, the costs have been adjusted, processes streamlined and poor sold services reduced at a minimum. A significant step was the detailed cost tracking and cost accounting, which led to changing the invoicing procedure and invoicing adjustments, mirrored directly in notably increased EBIT. Furthermore, having a better data base costing was easier and faster, which was an important factor to catch new orders in the rapid changing environment.

The projects were split into smaller task forces and the financial success has been transferred directly to the project management.

Based on the excellent image on the market, the company expanded on its own power, especially the demand in Eastern European countries promised steady growth. Standardized products replaced engineering services, which allowed new distribution channels and subsequently the turnover rose.

Overall, this built the basis for a further successful expansion.