Project examples in restructuring
Restructuring and interim management/ executive
(Supplier of electronic components)
- Pressing profit and liquidity crisis at an automotive supplier for electronic components (turnover >100 million €)
- Provision of interim c-level manager
- Definition and implementation of holistic restructuring concept
- Price optimization/ readjustments in sales and purchasing department
- Realignment of organizational and management structures
- Negotiation of restructuring agreement and social plan
- Optimization of working capital
- Extensive stakeholder communication
- Secured follow-up financing for the next 3 years
- Realization of profit improvements of approximately 5 million €
- Sourcing and induction of new C-level manager
Restructuring report and secured financing
(Automotive supplier)
- Long-term profit and liquidity crisis at an automotive supplier for metal forming parts (turnover >40 million €)
- Validation of a three-year business plan
- Implementation of operational improvement measures
- Definition of a financing proposal
- Definition of the restructuring concept and report
- Successfully secured follow-up financing with banks for the next 3 years
Restructuring report and implementation, interim plant manager
(Metal processing)
- Prolonged profit and liquidity crisis at a metal processing company (turnover >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 improvements on productivity in production and increase in sales prices
- Return to 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 operational restructuring
(Gear manufacturer)
- Profit and liquidity crisis with a low equity base at a gear manufacturing company (turnover >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
- Successful 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 (turnover >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 (turnover >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
Liquidity and asset analysis according to IDW S11
(Development service)
- Unclear liquidity situation and unsecured financing for development service provider in the automotive supply industry (turnover >20 million €)
- Creating transparency regarding the financial situation
- Preparation of rolling 13-week liquidity planning
- Derivation and implementation of short-term liquidity measures with a positive effect of >1.5 million €
- Successful negotiations with banks on maintaining existing financing (“Stand Still”)
- Secured long-term financing within 6 weeks
Independent business review and bank reporting
(Hydropower)
- Tough earnings and financial situation for service providers in hydropower (turnover >20 million €)
- Preparation of Independent Business Review (IBR)
- Derivation of a concrete action program to restore profitability
- Sparring for top management during implementation of the action programme
- Confidence-building bank reporting to ensure covenants and implementation of measures
- Implementation of liquidity-generating measures, in particular sale-and-lease-back with cash effects of >5 million €
- Inclusion of KfW subsidies and loans in the context of the coronavirus crisis
- Secured full financing within 6 weeks
- Successful company sale to strategic investor after 6 months
Operational restructuring plant Eastern Europe
(Automotive)
- Pressing earnings crisis and poor operating performance at the Eastern European plant of a Tier 1 automotive supplier (turnover >90 million €)
- Creation of a personnel benchmark and detailed concept with an operational action programme
- Adjustment of organisational and management structures
- Implementation of personnel management measures
- Short-term restoration of an adequate in-time delivery performance
- Elimination of urgent quality problems in production
- Introduction of key performance indicators, lean methods and shop floor management
- Realization of profit improvements of 7.3 million € through savings in material costs, reorganisation of indirect areas, productivity improvements in production and avoidance of special cargoes
- Break-Even of the production site within 6 month
Restructuring report and secured financing
(Automotive)
- Acute liquidity crisis and high losses at a producer of special railway vehicles (turnover >20 million €)
- Preparation of a restructuring report according to IDW S6 including operational and financial measures
- Mobilization of sales activities and introduction of sales management system
- Implementation operational improvements in order management and production
- Communication with banks and stakeholders to ensure dept capital provision
- Secured corporte financing over a 3 year period
- Implementation support and project management office for restructuring measures
- Realization of profit improvements of 3.1 million € through reduction of material and personnel expenses
Going concern by means of corporate sale
(textile industry)
- Exit-wish of a shareholder of a textile company close to insolvency (turnover >25 million €)
- Definition of a going concern concept with an action plan for achieving profitability
- Guidance in the process of selling the company to a new investor during insolvency under self-administration
- Intensive communication to financial institutions, share- and stakeholder to ensure the financing for going concern
- Sparring partner for new shareholder and CEO during implementation of the action plan
- Successful going concern by means of company sale and regaining profitability and debt service capacity
Task Force liquidity securing
(construction sector/ metal processing)
- Impending insolvency due to major project cost overruns at a metal processing company (turnover >40 million €)
- Task force for fast definition of funding requirements in order to achieve an agreement between various creditors
- Calculation of the short term liquidity needs caused by faulty project cost calculations and rampant cost developments
- Identification of ad hoc measures for liquidity generation (extension agreements, introduction of factoring, etc.)
- Enforcement of cost transfer agreements for major project cost overruns with customers
- Revision of the existing project calculation method for future quotations and contract agreements
- Prevention of impending insolvency through reduction of project cost overruns of up to 95%
Restructuring report and interim CRO
(telecommunication technology)
- Loss of convidence on part of the financial institutions of a manufacturer within the fields of telecommunication technology (turnover >15 million €) – due to high losses and liquidity constraints
- Preparation of a restructuring report according to IDW S6 with an extensive set of restructuring measures
- Introduction of a chief restructuring officer in order to ensure the operative implementation of restructuring measures
- Revision of reporting standards and active communication with financial institutions in order to achieve a financing solution
- Successful provision of capital and credit extension simulaniously improving financial conditions at banks/ suppliers
- Restoration of trust in the company by providing transparency and measurable profit improvements
- Confirmation of going concern and restructuring ability including adequate financing
Restructuring plan for private equity holding
(hardware/ software)
- Longstanding cash burn at a private equity holding in the fields of hardware/ software (turnover >40 million €)
- Preparation of a restructuring report on behalf of the company with extensive improvement measures
- Validation and review of the existing 3-year-corporate planning (P&L, balance, cashflow)
- Preparation of bank meetings (corporate presentation, 3-year-planning, financing proposal)
- Operational preparation of the splitting of the company from its deficient organizational parts
- Optimization of operative controlling for KPI monitoring and analysis of deviations
- Profit margin improvements of 6,2%-points; reaching profitabilty within 9 months
Task force operations pre corporate sales
(plant manufacturer)
- Intended sale of a plant manufacturer facing operational problems (turnover >20 million €)
- Task force for solving the operational problems and the effects on profitability and liquidity
- Deduction of an action plan to improve productivity, ensure material supply and reduce quality complaints
- Installation of an interim plant manager supporting the management of the company during the action plan implementation
- Guidance thoughout the entire sale process of the company to a strategic investor
- Sparring and coaching ot the management team in the transition process
- Settling of all operational problems within 6 months; going concern via corporate sale to a new investor
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 (turnover >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 (turnover >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, strategic and organizational development
(Automotive)
- Unsatisfactory profit situation over the course of several years at an automotive supplier (turnover >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 (turnover >100 Mio. €)
- 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 (turnover >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 (turnover >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
Reduction of overhead costs
(Automotive)
- Declining profit situation of automotive supplier (turnover 700 million €)
- Conception of performance-improvement-program by analyzing global plant- and location-structure
- Conduction of various plant-analyses and final recommendation for location-structure
- Top-down target-setting for each operating company
- Realization of gross-margin-improvements by defining of norm-strategies per strategic direction (product-category)
- In addition, realization of gross-margin-improvements by identification of loss-makers
- Reduction of personnel costs by identification and alignment of personnel cost potentials (incl. benchmark-analysis)
- Identification of potentials for other operating expenses and definition of concrete measures
- Specification of CAPEX-budget and proposal for distribution on different plants
- Realization of profit improvements of 27 million €
Holistic performance-improvement
(Automotive)
- Declining profit situation of automotive supplier (turnover >200 million €)
- Conception of performance-improvement-program as part of a two-staged concept (rough concept & detail concept)
- Development of prioritized 8 modules and 20 measures with greatest P&L-impact (rough concept)
- Ascertainment and milestone planning of identified main levers/ measures (detail concept)
- Top-down target-setting and bottom-up verification of identified potentials
- Alignment of indirect personnel structures and streamlining of organizational structure
- Increasing of productivity in each division by production optimizations
- Identification of potentials for other operating expenses and definition of concrete measures
- Operationalization of corporate strategy by cascading of overall multi-annual goals to the department-level
- Identification of profit improvement potential of 10 million €
Implementation of optimization measures is ongoing
Assessment of new product-market-segments
(Steel processing)
- High slump in order (80%) at a niche player in special metal processing of large castings (turnover >100 million €) due to changed market conditions and increasing competition from Asia
- Market analysis in order to evaluate the need for corporate repositioning
- Identification of unique selling propositions and technical core competencies
- Qualitative and quantitative assessment of new potential market and product segments
- 5 year-business plan for market development and financing
- Subsequently further management sparring during the transformation process
Efficiency improvement and cost reduction in purchasing
(Hydraulic systems)
- Various purchasing departments on corporate and group level at a manufacturer of hydraulic products and -systems (turnover 300 million €)
- Short audit evaluating possible savings in material costs
- Realization of group synergies strengthening central purchasing department
- Improvement of process efficiencies through predefined purchasing precedures
- Introduction of a standardized purchasing system (incl. tools and forms)
- Realization of 2.6% savings potential through negotiations with 50 biggest suppliers
- Qualification of strategic purchasing professionals throughout the project
Growth initiative new markets
(power tools)
- Growth aspiration of a profitable manufacturer of power tools (turnover >80 million €)
- Analysis of market and competitive environment in order to identify growth areas (horzontally/ verically)
- Identification of key competencies of the company in order to identify growth possibilities accordingly (laterally)
- Simulation of the effects of mega trends and sector trends on the future positioning of the company
- Qualitative and quantitative evaluation of growth options (trough organic and external growth)
- Detailling of the growth strategy including an implemenation roadmap
- Communication with Shareholder to grant growth financing
- Increase of group turnover to >200 million € within 5 years
Price adjustments with customers
(supplier of electronical components)
- Unprofitable post-order-calculation at a supplier of electronical components (turnover > 250 million €)
- Overview of cost drivers (raw materials, gas- and power supply, freight, wages, etc.) and definition of necessary price adjustments
- Preparation of price negotiations with key customers in order to achieve an ex-post value contribution and for future price adjustments
- Scenario calculation and definition of negotiation strategie with customers
- Coaching of the sales manager and managing director during the price negotiations
- Realization of 8% price reduction for key products gone into negotiation
Modification of calculation and cost benchmarking
(manufacturer of welded components)
- Unusual calculation of offers at a manufacturer of welded components (turnover > 40 million €)
- Set up and structuring of a calculation model in alignment with corporate P&L
- Validation of cost-type accounting and cost allocation (regarding direct costs and overheads)
- Benchmarking of surcharge rates with usual industry values
- Benchmarking of cost structures and recommendations for action
- Resulting in P&L conform pre-order calculation (including new surcharge rates, wage-hour rates and machine-hour rates)
Improvement of plant performance
(supplier mechanical engineering)
- Low reliability and quality of delivery at 3 production sites of a mechanical engineering supplier (turnover > 50 million €)
- Task force for regaining customer satisfaction for key customers (on-time, in-quality)
- Optimization of the order processing process elminating causes of errors (process- and system-side)
-
Workload study by means of multi-moment-method and HR-Benchmarking increasing the share of value-added
- Supporting the plant manager in setting up shopfloor management system and introducing lean methods
- Complete reduction of backlog within 6 weeks; reduction of quality complaints reduced to <0,01%
Business modell transformation
(automotive supplier)
- High dependency of a profitable tier 3 automotive supplier on the combustion engine/ powertrain (turnover >150 million €)
- Quantified scenario analysis of the business development with increased market share of e-mobility
- Proposal of a repositioning concept based on the key competencies of the company and potential market opportunities
- Modelling of the phase-out and ramp-up management for old/ new products in a detailled production site blueprint
- Calculation of the investment needs for the transformation and detailling of a financing plan in stages (equity/ debt-funded)
- Resulting in a detailled plan to reach independency from the combustion engine/ powertrain within 5 years (incl. 10% annual growth rate starting in year 3)
“In the context of securing the delivery capability of a 1st tier supplier – caused by the effects of the Corona pandemic – I have come to know MERITUS as a competent and reliable partner at all times. Within the scope of a task force, the MERITUS colleagues contributed significantly to maintaining the supply and to reducing the delivery backlog within a short period of time due to their high level of commitment. Through the professional and methodical use of MERITUS, measurable successes could also be realized regarding quality.”
„Dr. Jens Zimmerman supported us in various projects in a very capable and dedicated way. During these projects, he and his project team rapidly developed and implemented viable solutions. We were very satisfied with our projects results. Over the last years, Dr. Zimmermann has become a very trusted sparring partner to me – regarding all entrepreneurial questions.“
“We were looking for a consultancy that would provide us with operational and competent support in improving our business transparency. The MERITUS team worked with us quickly and collegially to produce the information we needed. We were very satisfied with the results.“
“We got to know MERITUS in the context of a task force project that was time-critical for us. Understanding the urgency, MERITUS consultants showed up at our site just two days later. Within two weeks, we had the transparency we were looking for and had negotiated a joint, fast-acting solution with our customer. In retrospect, the chosen path proved to be the right one for us. When it comes to fast and real help, we can highly recommend MERITUS.”
„Dr. Zimmermann was successfully responsible for several projects at Airbus and its supplying industry. His high personal involvement was key decisive factor for the respective project success.“
„Nicole Zimmermann helped us to newly approach our business strategy, organizational development and operational excellence in sales. She captured our initial situation with all of our company’s particularities very well. With her winning personality and her systematic approach, she and her project team developed smart and practicable solutions. Within our company, Mrs. Zimmermann enjoys an excellent reputation across all levels.“
„Dr. Jens Zimmermann accompanied us during a profit improvement project over a longer period of time. His work method was marked by a targeted entrepreneurial approach, high level of professionalism and well-structured thinking. As a person, we got to know him as reliable and approachable. I personally value Dr. Zimmermann as a distinguished sparring partner with high integrity.“
“MERITUS has accompanied us in several success-critical tasks. We appreciated the high expertise and professionalism of the MERITUS consultants. They are competent and always solution-oriented, but also pragmatic and likeable. We are very satisfied with the results achieved together and can recommend the cooperation with MERITUS.”
„We have contracted MERITUS for a quick and neutral evaluation of the current economic situation of one of our associated companies – thus also identifying adjustment levers in order to improve the actual profit situation. First results were ready at hand within no time and have surpassed our expectations. The MERITUS consultants have convinced us all on a personal and professional level. We will gladly engage MERITUS in the future to solve similar or different problems within our shareholding structure.”
„MERITUS has supported us in an internal project of utmost importance. We are a fairly small and successfully operating company and have had no mayor need for consulting advice until now. With a deep customer oriented understanding MERITUS has focused project efforts on the true essentials and proved to be technically competent and very responsible. We are glad to have found the precisely right partner at the right time and can whole-heartedly recommend MERITUS to others.“
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„Over the last years, we have worked very closely with Mr. Mairiedl. We got to know him as a reliable, open and particular fair business partner with strong target-orientation. Even following the termination of our business relationship, we have closely followed his career as chief restructuring officer and managing director in restructuring and reorganizational situations on interim basis.“
“Nicole Zimmerman has worked for me in several projects. Personally, I value her ability to move people in her sympathetic and competent way – yet addressing issues straightforward and openly. She is highly qualified and a multi talent for achieving cross-functional project results. Most convincing was our joint strategy and sales project. Her structured and target-oriented approach ensures project success reliably. Hence, I will happily continue to contract her.”
„I got to know Dr. Jens Zimmermann as project manager during various projects – each of them with really ambitious targets. In all of them, he was able to reach the previously announced goals. His approach was well-considered, straight forward and systematic.“
„Over the years, we have worked together with Mr. and Mrs. Zimmermann in several success-critical projects and appreciate their professional competence. MERITUS is our first choice when it comes to thoroughly scrutinizing our overall corporation and guiding us through the following, fast pace implementation.
„Dr. Jens Zimmermann helped Villeroy & Boch to improve our operational supply chain processes and global site structures. He disposes of profound technical expertise and proven project management skills. We were highly satisfied with the project results and the overall personal collaboration.”
„We got to know Stefan Mairiedl as CRO and member of the executive board during the M&A-process at a tier 1 automotive supplier in 2013. Mr. Mairiedl actively supported the investor relations process by setting up realistic business plans and representing the company throughout the entire process. We value his discipline and reliability. The results proof him to be a very competent player within the automotive network.”
Dr. Jens Zimmermann, Managing Partner
Stefan Mairiedl, Senior Expert
Nicole Zimmermann, Partner
Ralph Erhard, Advisory Board Member