References > Projects

Focus – Restructuring and profit improvement

Over the last 20 years, the managing partners of MERITUS have taken responsibility in over 200 projects regarding corporate restructuring and profit improvement. Our goal has always been to enhance and improve our client’s companies with special emphasis on visible effects in profit and loss accounts and balance sheets. You can gain some insights taking a short look at some of our exemplary project assignments below.

Project examples in restructuring

Restructuring and interim management/ executive
(Supplier of electronic components)

  • Pressing profit and liquidity crisis within an automotive supplier for electronic components (revenue > 100 Mio. €)
  • Takeover of the interim management
  • Definition and implementation of holistic restructuring concept
  • Price optimization / readjustments for sales and purchases
  • Realignment of the organizational and management structure
  • Negotiation of restructuring agreement and social plan
  • Optimization of the working capital
  • Extensive stakeholder-communication
  • Securing the follow-up financing for the next 3 years
  • Realization of profit improvements of approximately 5 Mio. €
  • Supporting the search for the new management as well as their introduction to the new job-tasks

Restructuring report and assurance of financing
(Automotive supplier)

  • Long-term profit and liquidity crisis within an automotive supplier for metal forming parts (revenue > 40 Mio. €)
  • Validation of a three-year business plan
  • Implementation of operational improvement measures
  • Definition of a financing proposal
  • Definition of the restructuring concept and report
  • Securing the follow-up financing for the next 3 years with banks successfully

Restructuring report and implementation, interim plant manager
(metal processing)

  • Prolonged profit and liquidity crisis within a metal processing company (revenue >20 million €)
  • Preparation of a restructuring report along with operational improvement measures
  • Setting up new corporate funding and ensuring regular bank communication
  • Introduction of an operational plant manager on interim basis at supplier’s site
  • Operational improvement on productivity in production and increase in sales prices
  • Return to the profit zone through profit improvements amounting up to 1,8 million €
  • Follow-up financing of over 5 million € within 2 years – for expiring note loans and reimbursed bank liabilities

Implementation of operative restructuring
(gear manufacturer)

  • Profit and liquidity crisis with a low equity base within a gear manufacturing company (revenue >50 million €)
  • Preparation of a liquidity and profit improvement program within a two-week short audit
  • Elimination of liquidity gaps through rigorous inventory reductions amounting up to 0,75 million € within 3 months
  • Realization of profit improvements of over 2,3 million € mainly due to price increases, productivity improvements and purchase price reductions
  • Successfully reaching break-even after 6 months

Restructuring report and implementation, interim sales manager
(automotive)

  • Acute liquidity gap and operating losses due to a market-caused drop in sales at an automotive supplying company (revenue >60 million €)
  • Preparation of a restructuring report along with operational improvement measures
  • Setting up restructuring bank loans
  • Introduction of an interim sales manager in order to generate new sales
  • Consistent operative implementation of cost reductions as well as accompanying bank communication
  • Significant participation in the acquisition of new orders
  • Reaching positive monthly results after 5 months of implementation
  • Another 4 months later, the approval of a growth loan through a bank was given

Restructuring report and implementation
(consumer goods/ jewelry)

  • Significant losses and liquidity shortage at a jewelry designer and manufacturer (revenue >10 million €)
  • Preparation of a restructuring report along with an operational and financial restructuring plan
  • Setting up deferral of redemption payments from financing banks
  • Implementation of a security concept in order to reduce theft-induced loss of material
  • Operative improvement of order management and production
  • Coaching of senior management in leadership skills (e.g. key performance orientation, consistency in action)
  • Achieving positive returns within 6 months – followed by profitable growth

Project examples in profit improvement

Market- and competitor analysis
(Component manufacturer mechanical engineering)

  • Continuous earnings decline of over 80% in recent years due to passive sales work at a company in the mechanical engineering industry (Group sales> € 70 million)
  • Analysis of the external market environment and the positioning of the company
  • Identification of growth potential by industry and technology
  • Assessment of the company’s USP from self-reflected and external view
  • Assessment of the current structures and processes in sales
  • Evaluation of the maturity level of the sales organization
  • Calculation of scenarios simulating the company development
  • Preparation of a recommendation on the strategic orientation of the company – Goal: Realization of identified growth potential of over € 20 million
  • Identification of short-term need for action and definition of optimization levers

Cost reduction and organizational development in purchasing
(cable manufacturer)

  • Various uncoordinated purchasing units within the corporate group of a cable manufacturer (revenue >1 billion €) – grown through company acquisitions
  • Worldwide short audit (DE, PL, CN, CZ) in order to identify key levers of improvement
  • Implementation of purchase price reductions for pilot product groups
  • Concepting and launching of a worldwide purchasing organization including purchasing processes and guidelines
  • Implementation of a new category management system
  • Qualification of future lead buyers
  • Reduction of purchasing costs by 4,1 million € (6% of the considered pilot group of materials)
  • Definition of a roll-out implementation plan for the remaining product groups

Profit improvement and strategic and organizational development
(automotive)

  • Unsatisfactory profit situation over the course of several years at an automotive supplier (revenue >30 million €)
  • Preparation of a profit improvement program starting with a potential analysis
  • Identification of strategic growth areas and implementation of specific action programs
  • Restructuring of the entire organizational structure
  • Introduction of consistent working capital management (especially accounts receivables management)
  • Holistic purchasing optimization including supplier negotiations
  • Introduction and constant monitoring of key productivity figures (shop floor management)
  • Improvement of liquidity of over 1,6 million € within 4 months
  • Reduction of procurement costs by 5% and overhead costs by 15%
  • Achieving profit margins customary to the industry after 7 months

Profit improvement and management performance
(mechanical engineering)

  • Diminishing corporate profits in recent year at a mechanical engineering company (revenue >100 million €)
  • Preparation of a profit improvement program starting with a potential analysis including competitor benchmarking
  • Reduction of procurement costs and quality costs
  • Productivity improvements through KPI-based management
  • Outsourcing of unprofitable areas
  • Boosting R&D output through KPI-based management
  • Improved profit situation by 2,3 million € within 8 months

Holistic cost-cutting program
(steel industry)

  • Unsatisfactory profit situation at a steel producer (revenue >2 billion €) caused by decreasing demand and increasing price pressure
  • Setting up of a company-wide profit improvement program
  • Definition of company-wide improvement levers and area-specific cost-cutting targets (top down)
  • Validation of cost-cutting targets with the responsible division mangers (bottom up)
  • Definition of a roll-out plan for the implementation
  • Focused implementation support in specific areas
  • Realization of profit improvements of over 120 million €

Holistic profit improvement program
(mechanical engineering)

  • Unsatisfactory profit situation at a mechanical engineering company (revenue >70 million €)
  • Preparation of a profit improvement program starting with a potential analysis
  • Reduction of personnel expenses through reorganization and efficiency improvements
  • Reduction of other operating expenses
  • Setting up an integrated KPI-system with consistent monitoring
  • Strategical and operational realignment of sales department and service structures
  • Process improvements in procurement, order processing and production
  • Coaching and qualifying the management team
  • Realization of profit improvement effects of 1,3 million € / 2,5 million € in the current / following year