Dynamic growth to become a partner of the automotive industry for future mobility worldwide!
The starting position
CMORE Automotive GmbH is a partner of the automotive industry for future mobility worldwide and offers comprehensive engineering, data and platform solutions for autonomous driving, connectivity and electromobility.
The company's services range from vehicle prototyping and conducting test drives to software development and manual labeling to fully automated data annotation models using AI and programming self-learning algorithms.
When the company was founded in 2011, it grew dynamically and reached a total output of approximately €30 million in 2019 with more than 300 employees. In order to expand its position as an innovation leader, the company invested more heavily in product development and the establishment of locations in Germany, as well as in the founding of sales companies in the USA and China. Development capacities were significantly expanded through a joint venture in India.
To safeguard its expansion strategy and the associated investments, the company decided at an early stage to take on a strategic partner. However, due to economic uncertainties in the automotive industry, projects were postponed, which led to liquidity bottlenecks and a delay in the already advanced investor process from mid-2019.
The procedure
Within six weeks, bachert&partner developed a restructuring concept according to IDW S6 with close involvement of the key stakeholders. This was accompanied by the implementation of immediate measures to promote liquidity and the introduction of initial restructuring measures. This gave the company the necessary room for maneuver to continue the investor process.
Together with the management, bachert&partner expanded the roadmap and provided operational support during the due diligence together with the M&A company Lincoln as well as during the subsequent investor discussions with the lawyers Fried Frank on the seller side and Bird&Bird on the buyer side. Despite challenging conditions, the transaction process was successfully completed within just under four months. With DXC Technology (Luxoft) as a strategic partner behind it, the company is excellently equipped for the future and financially able to continue its ambitious growth course.
The measures at a glance
Preparation of a restructuring concept according to IDW S 6
Standstill negotiations with financing partners and stakeholders
Establishment of a stringent cost and working capital management system
Personnel adjustments and consolidation of locations
Process optimization and improvement of existing controlling instruments
Introduction of a project post-calculation process
Implementation of rolling liquidity planning and commercial support
Support of the M&A process in the context of due diligence