The client for the interim manager was a family-run agricultural group of companies with 2 head offices and several locations. The group has an extensive production range from agricultural production (plants and animals) to food production for the German food retail trade. The group employs a total of 200 people. The company was undergoing a restructuring process due to an incorrect financing policy and poor strategic decisions as well as operational deficiencies.
Realigning the corporate strategy and management structure
The interim manager took on the mandate in the role of Chief Restructuring Officer (CRO). He was tasked with strategically realigning the company in close coordination with the management. He was also tasked with reorganizing the management structure, which was suffering from a lack of guidelines and decisions from the shareholders. The aim was to leverage earnings potential and take steps to reduce debt. However, due to the lack of financial resources, only the operating business was fully financed. There were no funds available for measures to improve performance.
Internal communication creates the conditions for the restructuring task
Even before the strategic and operational work, the first key task was to explain the urgent need for restructuring and the opportunities for restructuring to shareholders and employees. The employees were unsettled by the financial bottlenecks and rumors from outside the company. Through intensive and open communication, the interim manager was able to motivate them to implement the restructuring project promptly and without resistance.
New organization including new appointments to management functions developed
The shareholders were aware that the structure of the group of companies was one of the main weak points. The interim manager therefore developed a concept for the reorganization, including the replacement of management positions. This concept was approved by the shareholders and then consistently implemented by the interim manager.
Strategic realignment and sales options developed
In the next step, the interim CRO manager developed the strategic realignment of the group. He allocated the business areas that were to be sold in order to leverage considerable debt repayment potential and streamline and focus the overall structure.
Another task was to initiate the corresponding sales processes and support the due diligence. This resulted in purchase options. The interim CRO also drew up a debt relief plan with the shareholders.
Debt relief plan sets the course for the future
The total debt, including machine financing and supplier loans, amounted to around EUR 100 million at the time of the interim mandate. The debt was massively reduced by implementing the sales options. The remaining divisions represent a self-contained and viable group structure.
