BUSINESS TURNAROUND services

  • BACK TO PROFITABILITY & LIQUIDITY
  • OPERATIONAL EFFICIENCY IMPROVEMENT
  • SG&A/BACK OFFICE COST REDUCTION

ORGANISATION

  • Global Engineering PLC (PE-backed) €8b, 50kFTEs
  • MENA region €400m revenue, 2500 FTEs,

project SCOPE

  • Bring Region back to profitability – (EBIT)
  • Bring Region back to liquidity – (BCF)
  • Significantly reduce SG&A (and other back office) costs

project GEOGRAPHY

Middle East and North Africa – MENA:
UAE, SAUDI ARABIA, QATAR, KUWAIT , EGYPT, BAHRAIN, JORDAN, TUNESIA

FINDINGS

  • significant losses in majority of countries
  • regional SG&A costs exceeded 14% of sales vs. corp. target – 10%
  • overoptimistic budgets
  • negative BCF
  • many low (or negative) GM% projects
  • very bad collection in region
  • lack of proper credit control

CHALLENGES

  • stakeholders resistance
  • leadership and culture issues
  • Operational inefficiencies
  • Market challenges
  • Time constrains
  • Uncertainty
  • Lack of resources
  • non standardized procedures and processes in various countries
  • lack of proper reporting and controlling processes
  • Employee morale

ACTIONS

  • Reduced portfolio of projects
  • focusing on profitable only products
  • changed mindset onto bottom lines (EBIT, and liquidity) not only top line
  • building regional controlling function
  • monthly meetings with countries GMs FDs & operations management
  • proper (meaningful) reports to address other managers needs
  • R2R, P2P, O2C process improvements
  • FSSC creation + centralisation
  • Stronger control on planning + monthly forecasting
  • Stronger control over AR collection

DELIVERABLES

  1. EBIT improved +€15M (from -€7M to +€8M)
  2. Overall GM from 13% to 18%
  3. G&A reduced by €2M
  4. BCF improved by +€20M 5,
  5. Regional SSC creation
  6. Back office centralization
    SSC creation, processes centralized and finance personnel reduced by 55FTE (-35FTEs in finance, -10FTEs in procurement and -10FTEs in others) from original 125 FTEs
  7. SG&A reduction
    SG&A reduced to 11% of sales and savings c.a. €1.5M/year in staff and €1M other savings.

EXPERTISE APPLIED

Finance & Accounting

  • Strategic Fin. Planning, Execution
  • Budgets/Forecasts/Actual P&L/BCF
  • FP&A, Statutory, Group Reporting
  • Financial and reporting discipline

Business Turnaround

  • Portfolio evaluation & optimization (sales)
  • GM optimization (operations)
  • Back office costs optimization (SG&A):
  • Restructuring & Process Improvement
    • Centralization
    • Regional Shared Services (SSC/BSC)
      • creation, transition, management,
      • continuous improvement

Change management

  • addressing staff concerns,
  • facilitating cultural alignment
  • operational processes streamlining

Project management

  • proper process planning
  • roadmaps preparation and execution
  • efficient resources allocation

DOWNLOAD FILE

Business Turnaround (pdf) – less than 1MB

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