Results Corporate Finance

From our Corporate Finance partner came the request to support an owner-manager DGA with a production company with €27 million turnover and approximately 100 employees in service. The joint financiers had brought the business under Recovery / Special Management in connection with acute liquidity problems. The crisis situation was due to long-term significant negative results in recent years and the company almost went into liquidation.

“Conversations with the accountancy partner and the owner-manager provided the following picture: no post-calculations, among other things, had been made and an extremely negative reputation had developed with suppliers as a result of the poor cash flow. In addition the MT had little control over the determination of the purchase and selling prices of the products. Furthermore the relationships between the operations and the MT were very poor. Finally, the owner-manager appeared to have seriously neglected the management of personnel”.

As a result of a careful analysis of one of our interim managers, the owner-manager has been convinced of the fact that his MT and finance department had completely lost control over its internal and business controls. With the help of our interim manager a reorganization took place, by means of, amongst others, the disposal of loss-making parts of the business. Then a further reduction of headcount was realized by hiring a temporary HR specialist. Ultimately a new long-term strategy has been developed and the expectation is that a break-even result will be reported, together with a significant cash position. In addition, a basis has been created for a healthy growth in 2015. Furthermore, it is being evaluated whether recruiting an experienced permanent controller is more achievable than placing an experienced finance director.

CFO Metalcorp Group: A multiple background in legal, (corporate) recruitment and business development skills. Using mentioned variety of skills he adapted to the demanding working environment and was able to provide me support on the business functions required.