Context

• Two groups CAC 40 / SBF 120 jointly develop a new industrial business. The market tanks and this JV runs up recurrent losses of -20 m€.
• Our customer, one of the two shareholders, resolves that the line of business is no longer viable and wishes to redesign key operational models.

Our job description

• Gain proper understanding of the causes of the troubles.
• Carry out analysis of records.
• Define scenarios with shareholder and operations officers and identify new opportunities : should the company move to another business ?
• Compare scenarios from financial, operational and corporate good name standpoints using a 8A

Achieved

• Loss-cutting scaling down of business.
• Kick-off talks between shareholders on what course the business should take.

Keys to success

• Putting 8A’s financial and operational expertise to work and delivering :
  • Efficient modeling of operational issues;
  • Clear description of financial situation and options.
  • Fresh approach to the situation.
• The purpose of this project was to help shareholders make a strong operational arbitration: take back control of the subsidiary’s management and scale down business with a switch to a different line of business in mind. (2 year target).