Restructuring - Maconda

Holistic ways out of the crisis

Tailor-made, profound, targeted.

Just a short while ago, the company was doing very well, but (apparently) suddenly orders are falling away. This could be because a competitor has caught up strongly, disruptive technologies are endangering the business model, shareholders disagree or, perhaps, a law is tightened. There can be so many reasons for a crisis and you have to get to the bottom of them diligently and understand the causes. This is the only way to get into a position to act quickly and in a goal-orientated manner before things become existentially threatening.

But how can the turnaround be achieved successfully? What are the real causes of the crisis and what stage are we at? Is the business model still viable or is a change in strategy necessary? Which paths are available and which can be implemented? What could be the new mission statement after the turnaround?

maconda answers the questions and develops customised solutions in close cooperation with the company, depending on the phase of the crisis. Even if the crisis is only just approaching or is already well advanced, situation-specific methods and measures are needed that are strategic-conceptual, organisational or liquidity- and capital-orientated.

The current covid crisis has hit companies from many sectors with full force. While it maybe unprecedented, the resulting necessities are not. Securing liquidity quickly is precisely the exposed nerve of German SMEs. In the medium and long term, it is necessary to secure the ability to service capital, to improve processes and, if necessary, to realign the company.

We can support you based not only on our long track record in restructuring, but also because of our in-depth market and industry knowledge.

„When improving the performance of companies, especially in the case of a fundamental restructuring, comprehensive knowledge of the sector is essential in order to be able to make the right decisions quickly and accurately. Excel is limited and many restructuring concepts are lost in comprehensive tables. Our restructuring professionals go one step further and bring in comprehensive industry knowledge. This makes getting to the heart of the challenges of a company substantially easier.“

Dr. Rainer Mayer

Managing Director

Rehabilitation planning and support during implementation

Regain old strength.

A crisis does not knock at the door. It creeps in quietly and only makes itself felt when it is almost too late. Often the fault is not in overlooking the individual signs of a crisis, but in underestimating them in the overall context. If a crisis is present, action must be taken in strategic, operational and ﬁnancial terms. Our turnaround programme offers first aid and serves to restore performance sustainably. Turnaround does not only mean cost reduction, it also means a sustainable increase in earnings.

As an advisor independent of banks and investors, we show you opportunities and risks from a neutral perspective and develop the right course of action in trusting cooperation. Depending on the nature of the problem, these can be soft measures or hard cuts. Thanks to our extensive know-how from numerous advisory mandates, we have our ear close to the market and can quickly develop holistic ways out of the crisis.

We support you quickly and specifically in all phases:

Stocktaking (1-2 weeks): rapid creation of transparency, determination of the liquidity situation and financial requirements, SWOT proﬁle, quick check for investors/shareholders and ﬁnancing banks, certification in accordance with §270b InsO, identiﬁcation of options for action.
Tailor-made restructuring concept (3-8 weeks): assessment of the course of the crisis, analysis of value drivers, market and competition analysis, integrated concept for restructuring and financial planning, package of measures
Immediate measures, detailed planning and implementation (from the beginning; often up to 18 months, sometimes longer): securing liquidity and liquidity planning, initiating strategic and operational realignment, active working capital management, negotiations with stakeholders, steering the turnaround process and project management, change management, documentation

Depending on requirements, we also take over the search for a new shareholder, a buyer or a successor. In addition to management, we also support property and insolvency administrators in protective shield and regular proceedings as well as in the eventual sale of the company.

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Case studies

Living room lights

Initial situation:

Leading German manufacturer of residential and outdoor lighting, active in an increasingly difficult market environment, has been in the red for some time

Task:

Strategic and operational realignment and sustainable turnaround of the company, incl. development of new revenue generators as the basis for a turnaround

maconda contribution:

Development of potential new business areas, e.g. Smart Home
Identiﬁcation and analysis of the concrete needs of the end customers as an essential factor for product range policy, selection of distribution channels, marketing and brand management
Signiﬁcant acceleration of the product development and purchasing process: more than halving the time to shelf maturity; quick pick-up of current market trends and frequent launches of innovative products
Develop a differentiated, rolling assortment matrix that meets the needs of customers in the distribution channels served
Introduce a controlling tool to increase transparency with a view to the success of individual product groups and sales channels
Development of a special assortment for promotional goods; development and implementation of a tool to systematically analyse promotions in the retail sector

Cosmetics and care

Initial situation:

Foreign bank as main creditor wants to achieve the highest possible repayment of the claim on an insolvent medium-sized manufacturer of high-quality care and cosmetic products

Task:

As an experienced restructuring advisor, maconda is to critically accompany the restructuring process set up by the insolvency administrator and represent the interests of the bank

maconda contribution:

Detailed analysis and evaluation of the business model and the causes of the crisis as well as determination of the liquidity situation
Analysis of the non-transparent corporate structure, development of proposals for the carve-out of business units and brands for sale
Preparation of a continuation forecast for the client, development of a detailed action plan
Negotiations with the previous shareholder on the possibilities and conditions of re-entering the company, development of hedging mechanisms
Support in the acquisition and selection of potential investors; support in negotiations as well as development and negotiation of complex term sheets
Advising and supporting the bank on the conditions and effects of restructuring, and coordinating all activities and information flows
Repayment of a large part of the client’s outstanding receivables

Concrete

Initial situation:

Established manufacturer of prefabricated reinforced concrete parts for the production of sewer pipes and manhole components needs support with liquidity planning and averting insolvency

Task:

Creating transparency about the proﬁtability of products and orders and developing and implementing measures to avoid insolvency

maconda contribution:

Determination of the crisis stage and root cause analysis
Establishment of detailed rolling liquidity planning and ongoing refinement
Preparation of deferral agreements with suppliers; analysis of orders, contribution margins and order durations
Development of starting points for the rapid release of liquidity, discussion with all managers
Optimisation of sales, including actively approaching customers, targeted marketing, shortening lead times, etc.
Avoiding insolvency; company is proﬁtable for the first time after six years and was subsequently successfully sold to a competitor

Enquiries

Master the crisis situation together with us – we identify the ways out of the crisis so that you regain your old strength!

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