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
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:
- Failed positioning of the company in the reference market.
- Types of products marketed.
- 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
- The company progressively lost focus on its core business, opening and investing in product lines that do not generate profit.
- The company strategy, not supported by adequate management control, led to heavy losses.
- 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.