industrial equipment manufacturer: from rags to riches
Background
The client was an industrial products business with facilities in the UK and Europe and sales of over £300m. After several years generating losses, it was acquired by a Private Equity. Our involvement started during the pre-acquisition phase, when we help the leadership team to identify opportunities to reduce the losses and generate cash for the business.
A major transformation programme was launched, covering all areas of the business, aimed to prepare the business for exit.
What We Did
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Identification of opportunities to create value Planning and executing a complete business turnaround of a medium size global company.
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In its first year, CONSULTAVILA designed and implemented a new replacement part organisation. Including the entire supply chain, channels to market, distribution network , pricing and inventory policies.
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This was followed by a re-structuring of their manufacturing footprint, creating focused factories, capable of delivering on time and most important of all …profitably!
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We worked with the management team to simplify and optimise their more complex and key business processes, helping them to keep one step ahead of the competition in a highly competitive market
Results
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Recovery of spares market share by achieving over 95% availability with less than 1/3 of the previous inventory within 6 months. This increase in revenue and profits provided the cash required for the overall transformation of the company
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In less than two years, the company achieved a complete turnaround, guiding away from financial troubles and gaining recognition as a top UK manufacturer, achieving double digit growth and profitability, putting it well ahead of the market rate.
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Following a successful transformation of the entire business, the company was successfully exited