A turn-around situation in a company with declining revenues and significant losses.

 

The company was close to being bankrupt and in the role of Chairman, the acting CEO and subsequently a new CEO were supported in a range of actions to save and turn-around the company. We closed down a subsidiary in the Netherlands which was experiencing large losses while raising capital, through several rights issues, from the existing owners.

 

Fixed costs were reduced significantly by down-sizing the company from approximately 500 to 300 employees and moving the head office to a more favorable location with a lower rent. A new CFO managed to reduce outstanding overdue accounts receivables significantly. Furthermore, we changed bank, paid off loans, and changed auditors in order to reduce costs. These actions required a great deal of continuous internal communications in order to motivate and prevent key employees from leaving the company during these challenging times. 

 

Revenues were stabilized aided by introducing a new salary model with a variable structure benefiting high performers. Additionally, the company started to actively recruit and attract new talent. The company is now profitabe and actually was awarded IP firm of Scandinavia in 2015 and is continuing to develop positively.  An amazing turn-around experience where prioritising and rapidly implementing a range of actions saved the company from bankruptcy.