Restructuring of a logistics group with subsequent sale of the sub-activities.

Restructuring of a medium-sized logistics group of companies with subsequent sale of the sub-activities as asset deal

Client:

  • Medium-sized group of 4 companies with a main focus on shipping/logistics and associated peripheral areas such as tank car cleaning and truck service center
  • Number of employees: approx. 100
  • Turnover: approx. 20 m€

 

Stage 1:

Initial situation:

  • The business of the “Haulier GmbH” (main company in the group with 80% of total turnover) was characterized by high losses in the recent years. Fleet reduction by approx. 40% during the economic crisis 2008-2009 had brought no improvement
  • Dividing the group into four companies caused inefficient processes, oversized structures, double and multiple occupation of functions
  • Inconsistent management of the group led to a lack of focus in regards to activities
  • Financing bank required additional collaterals
  • The Owners/Management assigned ARONIA Management Consulting in a first step to conduct a quick check of the company situation and to develop recommendations for improving the profitability, the market positioning as well as the financing capability; this was followed by an assignment to get more into detail and to support implementation

 

Actions taken:

  • Development of a restructuring concept as basis for negotiations with the bank, employees and the trade union
  • Development and implementation of actions for consistent market development, creation of a lean organizational/management structure, increasing fleet utilization, cost reduction in tank cleaning, truck service and fixed costs/overhead as well as introduction of performance-related compensation for employees (initial situation: fixed compensation between 30-40 % above benchmark)
  • Introduction of project management as well as interim management support on reorganization by ARONIA Management Consulting
 

Results:

  • Implementation of cost savings in overhead and staff costs
  • Increasing of fleet utilization
  • Securing of the necessary bank support
  • Installation of a new CEO

 

Stage 2:

  • In the course of reorganization, and also due to a lack of family successor and due to an unexpected, long term illness of the new CEO, the company owners decided to use the favorable time slot (impact of restructuring program and the good market situation) for selling the company
  • The client requested its M&A experienced law firm to lead the selling process. ARONIA Management Consulting supported the law firm and took over the project coordination within the company

 

Actions taken:

  • Data preparation for an investment memorandum
  • Discussion of long and short list with the law firm and company
  • Preparation of a data room for due diligence
  • Supporting the purchase price negotiations with prospective buyers
  • Supporting the operational takeover by the purchaser and handling of the remaining activities

 

Results:

  • Lucrative sale of the company
  • Securing the continuance of the company under the new owner
  • Achieving of a win-win situation both for the owners and the bank