Task

  • Increase cash flow for purchase price financing through cost reduction program
  • Change management
  • Restructuring
  • Put Group site “on its own feet” (release from group contracts)

Industry/ Function / Environment / Expert

  • Chemical industry
  • Finance (operational & strategic)
  • Cash-Flow Increase
  • A non-core division of a group was sold to a private investor who had leveraged the purchase. Covenants were not allowed to be breached
  • Identification of possible conditions for a stand-alone SAP contract, negotiations with SAP supported by the group
  • Review all existing insurances and, if possible, continue them at Group conditions (focus: generator/BU insurance)
  • Reduce costs by checking all cost items for reduction (personnel, group allocations, service contracts, IT costs)
  • Reduce bureaucratic requirements (mostly Group-related)
  • Simultaneous optimization of processes
  • Negotiations with works council, employee communication
  • Operation continued without interruption throughout the restructuring process
  • Scrapping 1 of 2 generators (risk of failure)
  • Elimination of about 20% of jobs
  • Overall cost reduction of 30%
  • Medium-sized chemical company with just under 1,000 employees at one site in Germany; originally affiliated with a major German corporation.
Dipl.-/Bank-Kfm. Michael Weßling

Partner

+49 40 8000 845 92 wessling@fup-ag.com