Our former client is one of the leading mechanical contractors rendering design and installation of heating, ventilation, air-conditioning, plumbing, fire-fighthing, electrical and building automation systems of commercial and industrial buildings as well as electro-mechanical installations of large scale industrial plants, with a remarkable track record for the past 50 years.
Our client requested Reform Kurumsal to tackle the company's two main issues, namely the financial distress caused by the losses accumulated for the past several years and identification and curing of the underlying causes of the firms inability to generate profit from its operations.
As the first step, Reform Kurumsal managed stakeholder (financial institutions and suppliers) communication and negotiation processes to reformulate and consolidate bank loans and credits and overdue payments to the suppliers. This has been coupled with implementation of corporate and financial solutions generating liquidity from the balance sheet through effective cash management.
Reform Kurumsal has rationalized the company's opearations and product lines by exiting from unprofitable non-core operating activities and outsourcing the activities where possible. This has included relocating of non-core factory operations to a rented facility, running new operations under sub-contracted work-force, selling the factory and the headquarter building to realize debt/asset swap and generate working capital.
As the second step, following the containment of the problems related with the financial distress and the rehabilitaion of the money losing structure, Reform ensured revenue increase by focusing on profitable existing customers and emphasizing opportunities with new clients in the middle East, North Africa, Russia and Kazakhstan.
As a result, the company quickly turned around from the brink of bankruptcy and increased its order book from 30 million USD to over 100 million USD within 18 months.