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Company turnaround by D&I

Stop the bleeding and restore cash flow

The company is going through a crisis requiring immediate action.
In the face of severely deteriorated results, it is crucial to identify and implement emergency measures without delay, in order to stabilize the situation and give the company the time it needs to bounce back.
Dirigeants & Investisseurs takes immediate action, making the necessary arrangements directly and, if necessary, calling on specialist experts to work alongside us (mediators, solicitors specialising in insolvency law, financial audit firms, etc.).
We then support the company throughout this critical period and, if necessary, take over its management with an effective corporate mandate, steering banking negotiations, operational restructuring and the strategic actions essential to its recovery.

Helping turnaround companies build a new future

Helping companies in difficulty

We support companies to structure their recovery and secure their future.

Transforming for a fresh start

We intervene to restructure a company in difficulty and lay the foundations for a successful recovery.

Selling a turnaround company

We facilitate the sale of companies by identifying buyers and securing the transaction.

Restructuring a major group subsidiary

We help groups restructure or sell their ailing subsidiaries to optimize their performance and transition.

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The intervention process of our General Management firm in stages

1.

Operational diagnoses

2.

The action plan

3.

Implementation

The Chief Restructuring Officer is an expert appointed to manage the restructuring of a company in difficulty. Its role is to develop and implement a recovery plan to ensure the company’s long-term future. He is often involved in time of crisis to optimize cash flow, restructure debt, reorganize business and restore the confidence of stakeholders (shareholders, creditors, employees). His action is decisive in avoiding bankruptcy and putting the company back on a sustainable growth trajectory.

What are D&I's levers for action?

All this helps to improve the company’s cash flow and restore confidence in banks and shareholders.

Topline

By acting on sales performance.

Cost structure

By optimising productivity.

Optimizing working capital

By reducing inventories and improving collections.

Receivables

By negotiating debt rescheduling with suppliers in order to restore financial stability.

Targeted interventions to deal with complex situations

Faced with major challenges threatening the company’s long-term viability, Dirigeants & Investisseurs takes swift action to stabilize the situation and initiate a sustainable recovery.

Short- to medium-term cash wall
Inability to repay bank overdrafts
Necessity of opening/managing collective proceedings
Significant drop in performance
No management
Major crisis

Our services to optimize performance and achieve strategic transformation

How can Dirigeants & Investisseurs help transform a company and get it back on its feet?

The priorities are self-evident:

  1. Pushing back the wall of debt
  2. Transforming the company
  3. Restoring confidence

After the initial emergency measures, D&I carries out a complete diagnosis of the company and draws up an action plan designed to significantly reduce its breakeven point without jeopardizing its future development potential, by accompanying the manager or direct management. D&I then generally takes over operational management of the business and manage the turnaround from start to finish.

The company is not in danger in the short term, but its EBITDA – the potential cash flow generated by its business – is several points lower than that of its competitors. The sector is highly capital-intensive, and in a few years’ time, the company’s inability to invest as massively as its competitors could jeopardize its independence or even disqualify it.

An analysis of the root causes of this situation, clearly established by the diagnosis, will enable the risk to be dealt with, bringing the company back to its target profitability. Once the company has been restored to health, the managers who take over the running of the business over the long term will be able to focus on outperform the market.

This subsidiary would be in great difficulty if its parent group did not support it. The situation is not sustainable. D&I carries out a detailed diagnosis of the situation, draws up the restructuring plan and specifies the conditions for success. D&I then supports the manager in implementing the action plan, its operational management, negotiations with the social body, or directly leads its actions in the absence of the manager, until the crisis is resolved.

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Securing results through operational management

One member of the diagnosis team is responsible for implementing the plan.

He intervenes either alongside the existing manager or as the actual operational manager if necessary.

The duration of a mission may vary considerably (on average from 6 to 9 months), depending on the time required for the effective implementation of the agreed measures, including the final handover.

His teammate takes on the role of controller, and ensures the smooth execution of the mission, in line with the expected quantifiable results.

Formal and periodic reviews are conducted by the team members themselves.

Each mission benefits from the collective experience of all D&l partners.

A plenary review of all ongoing missions takes place monthly. It includes a detailed progress report on the work completed, focused on expected performance.

From the company’s perspective, a progress review of the action plan is held twice a quarter with shareholders and/or senior management.

This review is in addition to recurrent business/finance meetings and is structured as a critical review: current status, parameters to be confirmed or modified, etc.

This system aims to ensure the success of the mission and the achievement of the expected results.

Operational diagnosis

It always serves a dual purpose:

  • Identify root causes of problems and dysfunctions, as well as the company’s key success factors
  • Draw up a quantified plan for improving operational performance or turning around the company, generally over 12 to 24 months.

 

Diagnosis is systematically carried out by a team of 2 to 3 associates to ensure the quality and relevance of the conclusions.

It takes 5 to 6 weeks and includes a mid-term critical review. A final, formal, and detailed report is submitted to the clients.

Communication of the Diagnosis

When D&I is entrusted with the management of the action plan, as agreed with the current manager, the diagnosis itself and its action plan are explained to operational managers, key people in the company and, more generally, to all stakeholders involved, in order to ensure their support for the program and their future involvement.

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Expériences