Generating cash to fund the turnaround
A German €700m turnover manufacturing business with 3,500 employees appointed an interim project team to maximise short term value by accelerating cash generation and earnings improvement. The agreed actions were:
Develop a short term cash management & generation plan
Develop & implement short term restructuring work streams
Introduce structures to monitor & control the projects
Produce robust financial forecasting systems
Produce the restructuring business plan
The results surprised most onlookers:
€50m of cash was generated from working capital in 5 months which more than funded the first phase of the restructuring plan;
The cost base was reduced by €45m;
These provided the opportunity to reconfigure the business & move into sustainable profit…maintaining the momentum of the turnaround.
Success out of crisis »