Operational Restructuring & Turnaround

Industry : Media & Internet

Sales (in m€) : 400
Staff : 22 000

Context

  • €(20)m recurring losses over last 10 years.
  • Change in Management and a strong will to prevent further losses.
  • Very intricate internal organization. Understanding of the situation obscured by the complexity.

Our job description

  • Financial and operational
  • Support to strategic turnaround decisions, ie re-investment in the business called for as market conditions were favorable and company lagged behind competitors in terms of investment.
  • Valuation of assets
  • Detailed Capex Plan to industrialize process
  • Support to short-term (Factor) financing improvement (process and cash impact)
  • Distressed transaction of loss-making line of business
  • Assistance in laying out Redundancy Plan in the internet business unit to resume profit-making in line with industry standards and to optimize efficacy in Sales and Marketing department.

Achieved

  • All turnaround and operational actions implemented in fewer than 14 months
  • New CAPEX plan launched and financed.
  • No cash injection from shareholders required.

Keys to success

  • Ability to provide financial and operational data in a fast-changing environment
  • Free-flowing communication with all parties (employees, top management, board, state, banks, buyers…)
  • Very hands-on and realistic approach