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Restructure and turn around companies.
What is it about?
Branded car dealership in crisis.
Challenges:
- High capital expenditure on sites results in high debt service burdens
- Profitability rather below average in recent years 2 of 5 sites highly deficient
- One of three brands suffers from ongoing market erosion and produces losses, but is the DNA of the car dealership company
- Volume targets of automotive manufacturers too ambitious
- Below-average department results in aftersales due to high personnel costs
- Top management level overstaffed with three managing directors, high administrative costs
- Demonstration car fleet a key loss-maker in the New Car Division
- Liquidity bottlenecks jeopardize solvency
- Creditor banks and manufacturers are nervous and ask the question of being
Prudentes Approach:
- Bringing companies into a stable lateral position through short-term liquidity creation and restructuring credit from the house banks on the basis of the insolvency check in accordance with IDW S 11
- Workshop „Quo vadis Car dealership — how do we become more powerful?” with management and top performers
- Making the business model more competitive through reorganization appraisals in accordance with the standards of IDW S 6
- Developing a new site concept leads to the closure of a plant
- Standardization of the Aftersales processes based on the findings of the waste analysis
- Sales reorganization by brand (brand management) in coordination with manufacturers
- Volume reduction in coordination with the manufacturers
- Restructuring contribution by employees in consultation with works council
-
Reduction of the management level
Results:
- Creditor banks made restructuring contributions through fresh money, loan restructuring, granting of restructuring interest rates
- Automotive manufacturers significantly reduced their volume targets
- Earnings plan maintained in first year of reorganization
- Earnings target exceeded in second year of restructuring
Restructuring contribution of the creditor banks
Reduction volume target by OEM
Profitability increase within 2 years