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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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Turnaround business through a continuity agreement

Context: Italian companies 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 company Budget, broken down into Sales Budget, Raw Materials Purchase Budget, Personnel Cost Budget, and Investment Budget.
  • Study of the causes of low profitability.
  • Profitability analysis by product class.
  • Review of business strengthening strategies, also closing unprofitable product lines.
  • Opening of a preventive arrangement with creditors, in continuity.
  • Reactivation of union relations also based on the “good name” of the Temporary Manager(s) with the parties involved.

 Timing 

10 months.

 Results achieved 

  • Gross operating margin returned 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.
  • Arrangement with creditors approved in 7 months.
  • Turnover decline in the last three years.
  • Lack of company reorganization.
  • Loss of profitability due to:

  1. Failed positioning of the company in the reference market.
  2. Types of products marketed.
  3. Company's financial position very strained.

  • Difficulty in finding other financial means from credit institutions.
  • Strong internal conflict.
  • Union relations not managed.
  • Position of partners/administrators at risk of proceedings.

 Main causes of the problem 

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

DODO S.r.l.

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

Vago di Lavagno - VERONA via N. Copernico, 44 - 37030 - Italy
tel. +39 045 4853209 | fax +39 045 5113386

info@dodosrl.it

2019 | Dodo srl | All rights reserved | Reg. Imp. PN- REA PN-81410         C.F.e P. IVA 01497330934 | Cap. Soc. 90,000.00 Euro i.v.

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