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DODO S.r.l.

Pordenone via G. B. Bertossi, 6 - 33170 - Italy
tel. +39 0434 1852041  |  fax +39 0434 1691252

info@dodosrl.it

2021 | Dodo srl | All rights reserved| Reg. Imp. PN- REA PN-81410         Tax Code and VAT No. 01497330934 | Share Capital 90,000.00 Euros paid in full

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Corporate turnaround through a continuity arrangement

Context: Italian company operating in the electronics and subcontracting sector, with a turnover of €8M and 80 employees.

 Problem 

 Proposed solution 

  • Presence in the company of a Temporary Manager with general management functions.
  • Study and drafting of the three-year Business Plan and the company Budget, broken down into sales budget, raw materials purchasing budget, personnel cost budget, and investment budget.
  • Study of the causes of low profitability.
  • Profitability analysis by product class.
  • Review of the business strengthening strategy, with closure of unprofitable product lines.
  • Opening of a preventive arrangement with creditors, in continuity.
  • Reactivation of union relations also due to the “good reputation” of the Temporary Manager(s) with the parties involved.

 Timing 

10 months.

 Results achieved 

  • Gross operating margin returned to positive.
  • Optimized the existing organization.
  • Defined three-year Business Plan and Budget.
  • Activated management control with monthly reporting.
  • Restored a "good company climate”.
  • Reactivated relationships with suppliers and banks.
  • The homologation of the arrangement obtained in 7 months.
  • Revenue decline for three years.
  • Lack of corporate reorganization.
  • Loss of profitability linked to:

  1. Incorrect positioning of the company in the reference market.
  2. Type of products marketed.
  3. Very tight financial position of the company.

  • Difficulty in obtaining further financial resources from credit institutions.
  • Strong internal conflict.
  • Union relations not managed.
  • Position of shareholders/administrators at risk of procedure.

 Main causes of the problem 

  1. The company has progressively lost focus from its core business, opening and investing in product lines that do not generate profit.
  2. The company strategy, not supported by adequate management control, has led to heavy losses.
  3. The roles and responsibilities of shareholders, directors, and management appear poorly defined.

DODO S.r.l.

Pordenone via G. B. Bertossi, 6 - 33170 - Italy
tel. +39 0434 1852041  |  fax +39 0434 1691252

info@dodosrl.it

2021 | Dodo srl | All rights reserved| Reg. Imp. PN- REA PN-81410         Tax Code and VAT No. 01497330934 | Share Capital 90,000.00 Euros paid in

Privacy Policy