OEM Company from the Mechanical Engineering Sector
 
Globally operating Italian raw material trading and technology group with country organizations for high-tech project planning and manufacturing for the processing and packaging industries
 
Identified Intervention Areas

• Balance sheet over-indebtedness and depleted equity

• Multi-year negative operating results

• Monthly financing requirements in the mid double-digit million range

• Stagnating innovation power and development dynamics

• Blocking attitude of the works council regarding improvement initiatives

• Frequent management changes with loss of trust

• Dysfunctional controlling and accounting

• Insufficient liquidity despite good order situation

• Inefficient order processing and delayed final payments

• Outdated IT infrastructure and analog processes

• Risk of brain drain and sabotage during restructuring
   

Implemented Measures

• Development of differentiated recovery scenarios for board decision

• Production relocation to sister companies without order losses

• Reduction of working capital for liquidity gain

• Preparation of sister companies for production takeover

• Retention of local engineering and service activities

• Implementation of hot desk sharing at the new office location

• Establishment of shared services for support functions

• Complete digitalization of business processes

• Modernization of IT landscape with cloud-based solutions

• Negotiation of social plan and reconciliation of interests

• Establishment of transfer companies

• Ensuring operational capability until the last order
   

Results

• Successful prevention of imminent insolvency

• Liquidity gain through completion of all orders

• Successful integration of production into sister companies

• Undercutting of planned restructuring budget

• Increase in order intake despite restructuring

• Establishment of a future-viable engineering and service location

• Successful digital transformation of all business processes despite COVID

• Socially acceptable implementation of personnel measures

• Retention of critical competencies in the engineering area

• Securing long-term competitiveness
   

Applied Competencies

• Extensive experience in complex restructuring projects

• Expertise in turnaround management of companies threatened by insolvency

• Proven success in production relocation

• Experience in negotiations with works councils and trade unions

• Competence in digital transformation of business processes

• Expertise in change management and stakeholder management

• Ability for crisis communication and public relations

• Experience in building shared service structures

• Knowledge of labor law and insolvency law frameworks

• Assertiveness combined with social competence