Restructuring in the private equity environment
What was the company’s initial situation?
The company from the electronics manufacturing sector had been in a downward economic trend for several years. After several changes of ownership, it was most recently taken over by a private equity investor.
The economic situation made it clear that a comprehensive reorganization and restructuring was necessary. In this context, an HR interim manager (Head of Human Resources) was appointed to develop and implement viable HR solutions in the short term.
What specific challenges were there in the context of the task?
The main challenge was to develop and implement a viable staff reduction and restructuring concept.
The main requirements were:
-Development of a restructuring scenario in the personnel area
-Ensuring socially responsible implementation
-Close cooperation with the works council
-Compliance with labor law requirements, in particular in the context of reconciliation of interests and social plans
It also quickly became clear that a pure stand-alone scenario would not be sufficient. Instead, the perspective of a new investor had to be considered in parallel.
How was the project implemented in detail?
As part of the project description, the management team – consisting of the Management Board, Finance & Controlling and Human Resources – took over the operational implementation of the measures.
The most important steps:
-Analysis of the existing organizational structure and personnel costs
-Implementation of several dismantling rounds
-Development of more efficient process structures
-Creation of a target image for the organization and cost structure
-Consideration of both personnel and financial savings potential
A particular focus was on the balance between economic efficiency and labor law security.
What results were achieved through the restructuring?
The measures implemented led to clearly measurable successes in line with investor requirements:
-Streamliningthe organizational structure by 50% to around 170 FTEs
-Conclusion of a reconciliation of interests with list of names and social plan
Establishment of a transfer company (approx. 111 employees)
→ Reduction of the risk of unfair dismissal claims to below 1%
Implementation of a voluntary salary sacrifice of 25% on average
→ Signature rate of 94
Introduction of company integration management (BEM)
to reduce sickness-related absences below 10%
These results show a successful combination of HR transformation, cost optimization and risk minimization.
What strategic insights can be derived from the project?
The project highlights key success factors for restructurings in the private equity environment:
–Early involvement of all stakeholders, in particular the works council and management
-Combination of operational implementation and strategic investor perspective
-Use of instruments such as transfer companies to minimize risk
-Customized solutions for complex collective bargaining conditions
Focus on sustainable organizational development, not just short-term staff reductions
Another key success factor is the realization that a sustainable solution can only be achieved with a new investor.
FAQFrequently asked questions
What role does an interim HR manager play in restructuring projects?
An interim HR manager assumes responsibility for critical transformation processes at short notice. He brings experience in restructuring, employment law and change management and ensures rapid, professional implementation.
Why are transfer companies useful in restructurings?
Transfer companies offer a socially responsible solution for staff reductions, as they give employees a perspective and at the same time reduce the legal risk for the company.
Which success factors are decisive in private equity-driven transformations?
The decisive factors are:
-Clear cost and efficiency targets
-Quick implementation
-Close coordination with investors
-Professional stakeholder management
-Sustainable organizational development
