A corporate makeover

26 March, 2024

How Baker Tilly helped a company improve efficiency, profitability and cash flow

When a family-owned company operating across Europe suffered financial losses that impacted their future financing, they turned to our team of experts to help them restructure.  

Despite buoyant market conditions, the company had suffered substantial financial losses over a three-year period. With their negative financial results widely reported, they came under scrutiny within the banking community, prompting the need for an independent expert to confirm the company's viability for continued bank financing.  

And that’s when Baker Tilly’s team of restructuring experts stepped in.  

Adaptability, collaboration and decisive action 

Our team conducted an impartial assessment of the company's circumstances, analysing the root causes of the crisis and, in collaboration with the company’s management team, recommending restructuring measures.

With a view to the future and alleviating long-term liquidity and profitability strains, as part of the reorganisation plan, the company shed unprofitable investments and streamlined their organisational structure. In the short-term, however, this meant they suffered substantial financial losses and permanently reduced their equity, resulting in the need for additional short-term financing of approximately EUR 5 million.

Critical to obtaining that financing was restoring the company's credibility within the bank community, reversing the negative perception fuelled by wide-spread adverse news coverage around their poor performance. 

Action today, to secure a brighter tomorrow 

Our team successfully negotiated with the banks to reaffirm their commitment to the company and extend additional financial support. A year later, a follow-up mandate was also awarded.  

The impact of the restructuring measures was significant – the company emerged a more streamlined, efficient and financially stable entity, highlighting the positive outcomes of a well-executed restructuring plan.  

In 2024, the company completed its restructure.  

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