The management of a medium-sized car dealer has asked us to assist him with advice and action after the company was placed at the special assets session of the bank. The objective was to make the company financially sound in order to leave special assets.
- Scanning the financial situation, organization and market
- Drafting a vision and strategy for short and middle long-term
- Action plan in order to achieve the vision and strategy
- Forecast current year and next budget year with different scenarios and sensitivity analyses
- Main measures implemented:
- Closure of one location of which 80% of revenue was taken over by the other branches
- Reorganization of the work force, adapted to sales/volume
- Cost savings (renegotiation landlord, wage reduction, central purchasing, etc.)
- Industry-specific benchmark for all relevant financial figures (discounts, personnel costs, housing costs, etc.)
- Industry-specific benchmark for all relevant KPIs (sales per employee, indirect vs. direct, personnel costs by function, etc.)
- Within 9 months the long-term negative cash flow changed into a positive cash flow
- After 18 months the financer had regained its confidence in the company and it was taken out of special assets
For two years the organization’s balance is in order and has a positive result.