The starting position
The Layer Group is an owner-managed family business that operates on the market as a manufacturer and distributor of (highly) breathable roofing membranes, facade membranes, vapor barriers, insulation materials, and wind- and airtight roofing accessories. As a fully integrated producer and supplier, it covers the entire value chain from production to international sales via its own distribution channels to B2B customers. The group achieved sales of around €30 million and employs 140 people at three locations in Germany. In 2015, growth is slowed down by the integration of a new production site: structural costs skyrocket while sales volume stagnates. The expected success of the strategy "from trader to industrial producer" fails to materialize. Due to the already high level of debt, the targeted growth cannot be financed with the company's own funds. High complexity in group structure and product range lead to significant friction losses - due to lack of transparency the outlook is uncertain. The succession plan within the family also fails.
bachert&partner develops a restructuring concept in accordance with IDW S6 and, in parallel, introduces initial management tools to ensure the short-term liquidity situation. Central measures include reducing the depth of the product range, revising the pricing and targeted customer processing within the framework of a new sales concept. By providing an experienced CRO, "quasi with CFO function", the implementation success is supported internally and externally, enabling the managing partner to focus on the strategic development of the company and sales. During the restructuring phase, sales increase to around €45 million and operating profitability improves by >10 percentage points. The high acceptance of the joint restructuring team by all stakeholders secures the restructuring process.
The restructuring will be flanked by a structured M&A process, at the successful end of which both production units will be sold. As a result, the Group will be returned to its original focus and earnings strength: After restructuring, what remains is a successful and debt-free trading company with a high equity ratio and excellent prospects for the future.
The measures at a glance
Preparation of a restructuring report according to IDW S 6
Financing negotiations with financing partners and stakeholders
Establishment of stringent liquidity and working capital management
Provision of an experienced CRO as managing director with a high level of commercial expertise
Development of a management organization and establishment of controlling processes for targeted corporate manage
Realignment of the sales organization with close involvement of the managing partner
Successful sale of two production sites in Germany
Restructuring of the financing and debt relief of the group after execution of the M&A process