Succession

Restructuring and sale

The unresolved succession planning at a foundry group with sales of around €400 million left a gap in the management. Ralf Schmitz and Dr. Benno Hank were assigned control of the company with the aim of restructuring and successfully selling the corporate group.

Project overview

Team

Ralf Schmitz, Dr. Benno Hank

Client

Owner families

Company
  • Foundry group
  • Sales of approx. EUR 400 million
  • Group operating across Europe consisting of 11 operating companies and approx. 25 affiliated companies
  • Legal form: limited company
Initial situation
  • Death of the main partner and CEO
  • Substantial hole in the management of the group in respect of operational and strategic issues due to a succession problem
WHAT THE PROJECT INVOLVED
  • Taking over the management of the company (CEO)
  • Developing the corporate enterprise to turn it into an attractive target for takeover by restructuring individual companies and implementing integration measures across the different companies
  • Sale of the corporate group
Measures
  • Selective bolstering of the management team
  • Changing the corporate culture – moving away from individual companies operating autonomously towards a group operating in an integrated way (setting up new management structures, joint marketing, establishing best practice initiatives, improving transfer of know-how, etc.)
  • Professionalising the area of finance, in particular in relation to operational cost control and the planning process
  • Developing and implementing a comprehensive turnaround plan for a loss-making subsidiary
  • Splitting up/restructuring the complex legal organisation into a sellable, operational group and a part to be liquidised consisting of “legal shells”
  • Introducing the managers with a medium-sized enterprise outlook to M&A and PE requirements
  • Carrying out a sale process with international institutional and strategic investors
Result
  • Continuation of business activity with significant increase in sales and earning power
  • Successful restructuring of the loss-making subsidiary
  • Successful sale of the corporate group to strategic investors
  • Integration of the sold company into the acquiring corporation
Project duration

Approx. 2 years