Turnaround Strategy
A profound loss position needed to be recovered to save shareholders, lenders and
jobs in an industry in free fall
Sector: Construction and Manufacturing
Service: Strategy, M&A
Context
A severe decline in the financial and operational performance of this client compelled the company to review its portfolio to develop and implement a turnaround.
The catalyst was a large loss and the resulting need to provide greater comfort to lenders and
shareholders.
Approach
Phase 1 focused on developing the client’s portfolio strategy and realigning it.
Phase 2 included the development of an integrated financial model, the development of operational and financial assumptions to support the capital restructuring and the refinancing/restructuring of the business, and negotiating terms with the client’s lenders and shareholders.
Impact
The Board endorsed the optimised portfolio strategy and an implementation plan was developed and executed.
The business turned around a R7bn loss and posted R500m in profit for FY21.