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PROFITABILITY PROBLEMS

Restructuring and repayment of capital contributions

Industry:
International blue-tech company and the local company

Position:  
CEO of the local company

Goal:    
Restructure the business and repay the accumulated capital contributions made by shareholders to the company.

Description:   
The client was sitting on SEK 100 million of accumulated losses over the previous three years and the market for the company’s products had shrunk by an average of 20% per year. The parent company had been making capital contributions on an ongoing basis and less than 50% of production resources were being utilised. The consultant moved production to Germany and terminated all personnel in production and administration. All assets were sold, all debts settled and the company was put into liquidation.

Result:

  • Restructuring was achieved according to plan and under budget.
  • The owners were repaid and the manner of termination of the workforce was praised by the affected trade unions.

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