TURNAROUND

A private, trans-Tasman manufacturing group suddenly found itself facing a deep financial crisis.

The problem

Stalled growth in Australia and eroding margins in heartland markets were crimping profits for a world class manufacturing group with high growth expectations. Things only intensified when a further market-shock saw volumes drop 15%, leaving the business in financial crisis.

Our solution

A VF Director and Executive Consultant stepped-in to provide hands-on turnaround leadership and assisted the CEO and Senior Team to drive their own turnaround.
cogs working together
stack of money

The process

Working from within, we leveraged the experience of the Executive Team, provided high-impact advice, and helped drive an approach to:

  • Take control of the business
  • Extract savings and adjust operations
  • Restructure the Group
  • Confront and action tough decisions
  • Secure bank support and revised credit terms
  • Renegotiate key leases and contracts
  • Refocus procurement & suppliers on innovative ways to achieve target price-points
  • Reposition their product in new segments
  • Develop and drive a medium-long term ‘growth’ strategy.

The outcome

Over a 4 year engagement, we worked closely with the Executive Team to rescue, recover and rebuild the business. The business was acquired for a 10 times multiple 1 year after we completed our engagement.