Restructuring an Engineering Company During the Financial Crisis

An engineering company was heavily hit by a drop in orders during the financial crisis. It was highly dependent on a limited number of customers and mainly on low-value-added subcontracting. Weak controlling and a passive sales approach led to a rapid deterioration of its financial situation.

Rising debt, pressure from creditors and suppliers, operational instability and continued losses threatened the company's survival.

Interim crisis leadership and restructuring management.

• Crisis cash flow management
• Cost structure review
• Optimising production and staffing capacity
• Moving production to more efficient premises
• Diversifying the customer portfolio
• Strengthening sales and developing higher-value-added products
• Introducing regular reporting and controlling