CONFIDENTIAL
Our CEO was involved in the acquisition of a German-based submersible pump company from a US publically listed company.
The acquisition was part of the sale of a non-core/non-performing entity from a multinational parent company, where the process was tired and a quick and discreet solution was required in order to preserve the seller’s reputation and guarantee business continuation.
The company employed over 200 staff and specialized in the design, manufacture, and sale of industrial submersible pumps to the Oil and Gas, water and mining sectors.
Turnaround
The company was mismanaged and neglected, generating €40 million in revenue but incurring losses of €3 million annually. Recognizing the potential within this business, we embarked on an extensive consultation process with all levels of management, from top executives to middle-tier managers, to gain a comprehensive understanding of the challenges and opportunities.
Based on these insights, we developed and implemented a robust turnaround plan focused on three key areas:
- Cost Reduction: We streamlined operations and optimized resource allocation to cut unnecessary expenditures, significantly reducing our cost base.
- Sales Growth: By penetrating new markets and geographies, we expanded our customer base and diversified revenue streams, thereby increasing sales and mitigating market risks.
- Operational Efficiency: We modernized our plant and improved operating methods, maximizing capacity and ensuring high-quality outputs.
As a result of these concerted efforts, we successfully restored the division to profitability within two years. Today, the division is both profitable and has benefited from a substantial increase in revenues, reflecting our strategic initiatives and the hard work of our dedicated team.
