Restructuring of an engineering services company

Listed aircraft construction group

Group subsidiary and leading engineering services company with approx. 350 employees

Michael Hengstmann

High negative operating result
High level of open receivables
Lack of a professional and proactive sales team to acquire customers and projects
Dramatic slump in order intake and sales (minus 50%)
Negative operating result (EBIT margin: minus 20%)
Change-resistant corporate culture with well-known corporate brand and history
Restrictive company agreements and critical (group) works council and trade unions

Establishment of a Chief Restructuring Officer / Chief Executive Officer
Development of three scenarios for the shareholder (liquidation, sale, restructuring)
Strategic realignment of the company
Negotiation of socially acceptable termination agreements
Implementation of cost savings in all areas
Introduction of a new IT architecture through virtualization
Reorganisation of sales and acquisition of new major orders and new customers at home and abroad
Training of a successor for the managing director/ CEO

Increase in incoming orders by approx. 260%
Increase in turnover of approx. 45%
Reduction of working capital by approx. 38
Reduction of overhead costs by 60%.
Reduction of approx. 25% of staff capacity
The company has been successfully restructured and is again generating a sustained positive EBIT margin
Preparation of exit capability through complete carve-out from listed industrial holding company, merger of numerous companies and later successful sale to a financial investor