An Austrian underwear manufacturer (lingerie) with numerous strong brands was planning to expand its business there following initial success in the USA. However, only very limited funds were available for this internationalization. The relevant financing lines were due to expire within less than a year. Against this background, the interim manager was commissioned as interim CFO to secure long-term financing.
In preparation, he agreed with the management board to first develop a brand strategy for the next five years. The interim manager was to develop a business case (planned figures) based on consolidated financial statements (actual figures) yet to be prepared as documentation and a decision paper for the Supervisory Board. The interim CFO and CEO also agreed this approach with the syndicate banks.
Financial risks reviewed - and brand strategy realigned
In developing the strategy, the brand managers first assessed the business potential available in the USA. Following a comprehensive SWOT analysis, including the regional value proposition, the company management decided on the west of the USA as the new growth region. The company's top brand was to be positioned first.
However, when reviewing the US figures, the interim manager determined that the overhead costs of this single-brand strategy were too high. The brand managers were therefore instructed to consider a multi-brand approach for growth in the USA. After extensive consultations, all those involved opted for a multi-brand approach with 3 brands, two flagship stores (East, West), a modernized product range for the West, an online store and a central administration in the USA.
Consolidated annual financial statements and business case created for US commitment
After the interim CFO and his team had created consolidated annual financial statements, he developed a business case for the increasing commitment in the west of the USA based on these current figures in close coordination with the brand managers' areas of responsibility. This business plan included a profit and loss account, balance sheet, cash flow statement, investment and employee planning. The financial requirements, interest and repayment demands of the owner and the bank consortium were thus worked out transparently for the various stakeholders.
Long-term financing secured in negotiations with the banks
The business case was forwarded to the global supervisory board three weeks before the planned strategy meeting - and the growth strategy was approved almost unchanged. The interim manager then conducted several months of negotiations with the banks on the basis of the approved strategy, during which he secured long-term financing.
