Restructuring of an international mechanical engineering company

International private equity firm

International mechanical engineering company with approx. 750 employees

Michael Hengstmann, Martin Nussbaumer, Dr. Manfred Lerch und Sven Merkel

Negative operating result, high level of debt and break of covenants leads to liquidity and confidence crisis
Inefficient processes in production lead to long delivery times and a lack of delivery reliability
Significant quality costs and customer complaints
Unfocused product portfolio with partially negative product contribution margins
Inexperienced management in special plant construction and in crisis situations

Establishment of an interim Chief Restructuring Officer, Program Officers and strategic purchasing manager
Development of a restructuring concept and immediate implementation of measures to secure liquidity
Negotiations with the bank pool and owners to refinance the company
Establishment of a program office in the areas of sales, organization, purchasing/ SCM, production and liquidity management
Restructuring and implementation of measures to reduce costs and increase liquidity
Introduction of a project management organization
Start of a sales offensive
Preparation and implementation support for the sale of the company

Successful refinancing of the company (volume: approx. EUR 80 million)
Reorganisation of the management team
Realization of significant savings in purchasing and reduction of working capital
Acquisition of new key account customers and significant increase in incoming orders and sales
Reduction of delivery delays (minus 78%)
Optimization of processes and responsibilities in production
Tripling the operating result and sustained increase in the EBITDA margin to over 12% after years of operating losses
Successful sale (exit) of the company as part of a structured sales process and MBO to a financial investor