- Quick due diligence and closing process. Speed is of essence in special situations, given a potentially fast deterioration of value. Time for due diligence, negotiation, and closing has to correspond with the circumstances.
- Taking effective action quickly. Initial actions to reverse the spiral and begin the change include taking an activist position for shareholder and control rights, organizing stakeholders to support the turnaround, quickly establishing a restructuring plan, and creating liquidity.
- Forming the Management Core (in parallel). We establish management teams that are capable of implementing a turnaround. In addition, in every portfolio company, we deploy at least one of our team members to facilitate the restructuring.
- Hands-On Operational Financial and Strategic Improvements. The phase focuses on operational, financial and strategic improvements.
- Operational improvements focus on resizing the company to its core business. They include, among other, plant consolidation, overhead rationalization, product line rationalization, downsizing, cycle time reduction, supply chain improvement, and excess asset monetization.
- Financial improvements aim at fixing the balance sheet. They consist of liquidity improvement, vendor negotiation, and balance sheet restructuring, and recapitalization.
- Strategic improvements build a foundation for the longer term success of the company. They include a strict focus on the core business, asset repositioning, value chain improvement, etc.
- Tailored exit strategies and management. Our hands-on involvement in the companies allows us to develop effective exit strategies for each asset and maximize shareholder value.
