Turnaround and sale of the company

Electrical/Electronic Manufacturing

Manager:

Mr.R. J.

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  • Customer:

    Confidential

  • Role:

    Turnaround Manager / CEO

  • Location:

    Switzerland

  • Turnover:

    12,5 million Euro

  • Time frame:

    2,7 Years

  • No. of employees:

    MCHF 90

About the Customer

The client is an international company with approx. 330 (2014) employees creating high-quality products and services for the manufacture of electrical motors. Over 80% of its products are exported.
Stator and rotor laminations are stamped from magnetic steel strips and then joined together into ready-to-install stator and rotor stacks via in-die stacking, welding, baking, riveting and clamping processes. In subsequent steps, the rotors are cast in aluminium and the rotor shaft is inserted.
Until the sale, the company was family-owned since its founding in 1961.

Testimonial from Сustomer

As a result of the successful turnaround the former owner sold the company for a reasonable good price. He is very pleased, as the new owner will continue his life’s work.

Situation (Challenge)

The company went almost bankrupt by end of 2014.
The reasons were “homemade”:
–    Loss-making contracts
–    Low productivity
–    Heavy structure
–    Missing cost controlling
–    Weak management
–    75 years old owner was president of the board and CEO and was overwhelmed with the difficult situation of the company
–    Weak communication

In view of this desolate situation of the company and the pressure of the banks I was engaged as turnaround manager starting with the turnaround project “Direttissima”.
A search for a CEO was running when I arrived. As the recruitment failed the owner asked me to take over this open position.
As CEO I had the necessary power the take decisions to accelerate the turnaround project “Direttissima”. The primary target of “Direttissima” was to eliminate the weaknesses mentioned above.
In addition to the recovery of the company the sales process of the company was launched.

Solution (Achievement)

– Sense of urgency was available
–    Commitment of the board, management team and banks to the necessary changes
–    Involvement of key people – Turnaround project “Direttissima”
–    Rigid project controlling
–    Speed
–    Open and honest communication

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