The starting position
A well-known envelope manufacturer produces 20 billion paper envelopes of all shapes and functions annually in 18 countries with more than 40 companies interacting in a complex holding structure. The owner-managed holding structure, with a history dating back to 1807, finds itself in a critical situation in early 2017. The company, with an annual sales volume of over 200 million euros, has invested heavily in acquisitions and is now stuck: internationally targeted growth is failing to materialize, integration of the acquisitions is slow and the markets are becoming more digital - the paper envelope is simply losing importance. The result: a persistent loss situation despite internal countermeasures and increasingly tight liquidity. The complex corporate structure with a large number of financing partners exacerbates the risk of impending insolvency. Action must be taken quickly.
In addition to a restructuring concept according to IDW S 6, bachert&partner develops a sustainable overall strategy for the further development of the business model in an attractive growth market. The company is to become the innovation leader for "light packaging" in Europe. The measures introduced are stretching management and staff to the limit. However, it is only through consistent, pragmatic implementation of the restructuring concept and open communication with all stakeholders that the collapse of the Group can be prevented and transformed into a successful turnaround.
The measures at a glance
Negotiations with tax office and antitrust authorities regarding legacy issues
Standstill negotiations with financing partners and stakeholders
Setting up working capital management
Conclusion of a social plan with reconciliation of interests
Sale or closure of companies
Relocation of machinery and personnel capacities
Introduction of "Lean Production“
Value-analytical optimization of envelopes
Development of a sales-up program
Implementation of SAP HybrisT
After 15 months, the earnings situation has turned positive. In total, a two-digit million amount of funds is raised for the expansion of the overall strategy - around 40% of this from internal financing measures. The consistent approach and farsightedness of the restructuring team lead to a sustainable turnaround. The investment in the bachert&partner team is already paying off in full after 12 months. More than 1,200 jobs are secured and the company is heading for a promising future.