Decoupling the subsidiary as the core of restructuring consulting

The starting position 

The metal processor, which consists of two companies, generates consolidated annual sales of around 50 million euros with 250 employees. While the parent company in Upper Swabia specializes in complex machine cladding or control cabinets, the subsidiary based in the Rhine region is one of the technology leaders in the field of special cabins for maritime and mining applications. The roots of the owner-managed group of companies go back to 1846. 

The subsidiary's high dependence on one main customer has led to an existential earnings crisis. In addition, the operating business has run into difficulties due to an unprofitable expansion of the product portfolio and the associated complexity. 

The parent company is basically efficient, but a temporary drop in demand and a lack of sales efforts are leading to underutilization. In addition, the situation of the subsidiary is putting a strain on management and financial resources. The cross-guarantee system of the two companies, which is being formed in the course of the Group's refinancing, makes finding a solution even more difficult. 

The procedure 

bachert&partner supports the operative business at both company locations parallel to the preparation of the reorganization concept according to IDW S 6. The first step is to stabilize sales at the subsidiary in order to minimize spillover effects, e.g. on common customers. The restructuring advice envisages the decoupling of the special cab manufacturer and the recovery of the parent company. 

In Upper Swabia, the focus is on revenue generation and selective optimization measures. The long-term retention of top performers is just as important a factor as the implementation of a financial unbundling concept. In the course of implementation, there is also a transfer of entrepreneurial management, the insolvency of a Group company and the development of social plans with a reconciliation of interests. 

The measures at a glance 

  • Development of a financial unbundling concept and negotiation with the financing partners

  • Decoupling of the loss-making subsidiary in the context of a planned insolvency

  • Deferral of special payments

  • Development and implementation of a sales-up program

  • Adjustment of administrative structures

  • Setting up a working capital management system

  • Introduction of a new target system to actively retain top performers