Manufacturing and Engineering
Manufacturing and Engineering
As the manufacturing sector emerges from the global recession, earnings should move into positive territory.
However, many businesses remain vulnerable to other significant risks, including currency fluctuations and competitive tender processes as well as political uncertainty in key export markets, such as the EU and Russia.
Our Approach
Our experience, gleaned from decades spent in support of the sector, demonstrates that appropriate restructuring advice for companies in distress will help them steer a sensible path towards continued trading.
Our approach is holistic in nature; in many situations the root of the problem is not simply financial – this is often just the symptom. Our experience means we also review sales and marketing structures, product line and competitor analysis, combined with production system efficiencies, as well as supplier arrangements. This intelligence enables us to put forward sound and commercially viable solutions that will assist the business in getting back on track.
Our expertise is also supported by our dedicated team of specially selected financial and operational directors with first-hand experience of working within the sector. All have held senior positions and have an enviable track record in areas such as sales and marketing and operational matters.
In the unfortunate circumstance that an organisation is unfit to continue trading in its current form, we can provide a number of options best suited to the needs of the business which will help secure jobs and maintain vital supplier relationships. As a leader in the practice of implementing company voluntary and scheme arrangements, we are perfectly positioned to offer support in this complex area.
By bridging funding gaps, reviewing and restructuring operations to make them lean and fit for purpose, BTG Global Advisory have helped organisations find relief from the considerable challenges of negotiating with creditors, allowing them to run their business and take advantage of opportunities to move the company forward profitably.
Related Case Studies
Manufacturing and Engineering
Warendorf – Die Küche GmbH
Personalised customer care, premium products and German quality. All signs point towards a positive future for Warendorf – Die Küche GmbH. The PLUTA restructuring experts were able to successfully keep the kitchen manufacturer’s business operations going and find an investor four months after the company had filed for insolvency. With a new investor from Hong Kong and a new name – now Warendorf Küchenfabrik GmbH – but the same high quality with a “made in Germany” guarantee, customers worldwide will welcome the solution achieved. This is also a positive result for employees. Most of the some 110 original jobs have been saved through the takeover.
Manufacturing and Engineering
Straubinger Metallbau GmbH
The insolvency law experts from PLUTA Rechtsanwalts GmbH found an investor for Straubinger Metallbau GmbH, based in Bavaria. The company, which has been operating for more than 40 years, filed for insolvency due to liquidity problems. Its core competencies lie in metal and steel construction and fire protection measures. In this area, the company also advises architects and building contractors. The buyer is the former managing director, who set up the company and then successfully managed it for years. Under the asset deal, this long-standing company will retain its name and all jobs have been saved.
Manufacturing and Engineering
Evraz Highveld Steel and Vanadium Limited
Evraz Highveld is the second largest steel manufacturer in South Africa. It is the country’s only producer of heavy structural steel products and only one of five such companies in the world.
In 2015 the Board and management advised that the firm did not have sufficient funding to meet its financial obligations for the short term as a result of historical operational and financial difficulties and extremely difficult steel and vanadium market conditions. It was resolved to place the company into Business rescue.
Initially an accelerated M&A process was entered into, in order to find a strategic investor, and ways of reducing costs were implemented. Several independent environmental specialists were appointed to evaluate and assess the potential environmental liability and a rotational lay off agreement was entered into with the unions, and later, a full retrenchment of all the staff.
In an attempt to preserve value, an application was submitted to the International Trade Administration Commission (“ITAC”) for import price protection. Several private and governmental entities were approached in order to obtain post commencement funding.
The process is currently still underway.
Manufacturing and Engineering
Integrated Distribution & Print Business
Farber’s multi-disciplinary team were engaged by the private equity fund/shareholder to provide advice and guidance to the Board of Directors and management team as the Company operated through a financial and operational turnaround.
Our duties included assessing and building the management team, advising on all financial and cash flow implications as well as assisting in all aspects of operational performance improvement.
Farber were able to develop strategy, including closing facilities and building sales capabilities and recruit a new CEO and sale staff, resulting in a 20% improvement in productivity and ensuring the cost of capital is optimised. Farber are continuing to provide support for finance and operations of the business.
Our Other Industry Experience