Situation

Our client is a family owned public works company specialised in sewage and water pipes installation. Since three years company performance has decreased.

The chairman of the board is looking for an interim manager to engage a quick turnaround to restore profitability and sell the company with a preference to its managers.

Challenges

  • Set up a clear diagnosis; finance, organisation, operations
  • Propose an action plan with priorities and impact on results
  • Motivate operations managers and teams
  • Deliver financial results first step breakeven second step restore profitability
  • Forge a strong management team for company takeover
  • Convince banks and financial institutions to support the takeover by the management team

Actions

The interim manager’s first success was to build with the management team a comprehensive action plan involving operations and support team with specific targets and KPI’s. Communication and regular updates demonstrated that performance was at reach for each team, installation projects, safety at work, margins, cash management…

The management commitment to act, forecast actions and financial results impact has revealed the full potential of company improvement, then restore confidence within employees and the family shareholders.

The takeover project by the management started after the quick recovery phase (6 months). The chairman of the board with the family agreement decided after valuation of the company to secure the takeover with the management team. To ease the financing deal with banks the family agreed upon keeping 20% of the shares for a maximum five year period.

Results

The interim manager’s mission was a success both for the turnaround (6 months) as for the
company takeover (6 months). The family with now 20 % of the shares agreed with the management team to hire the interim manager for 5 years for growing company business, preparing general manager succession and family leave.

The interim manager has wrote a book to share the company story, a team success.