Turnaround

Our solution

Fontenay Operating Partner proposes and implements the operational solution to bring the company back to profitability. The causes of the difficulties are therefore identified and the turnaround plan is built.
If needs be, the partners of Fontenay Operating Partner assist the company in financial negotiations and take over the function of CRO as long as necessary. If requested by the Board, they take the position of CEO and legal representative in order to give a new future to the company.

Case study

Baseline

The subsidiary of an overseas industrial group, located in England, installs communication systems in the transport infrastructure sector. Its sales (£ 25m) decreased by more than half in one year. The annual loss exceeded half of the turnover, due to commercial difficulties and lack of control over the deployment of projects.
The Group, which does not have much know-how in this type of activity, asks Fontenay Operating Partner to manage the subsidiary with the following goals: :
• Build a turnaround plan and drive its deployment,
• Organize the recruitment of a CEO with a developer profile, for taking over the management after the turnaround.

The offer of Fontenay Operating Partner

In 3 weeks time, Fontenay Operating Partner implement an organization able to restore the monitoring of projects. Then the turnaround plan is launched, focusing selling prices increase, downsizing, and cost cutting.

Results

Nine months after the beginning of the mission, the subsidiary reaches green figures in a stable way. Instead of recruiting a successor externally, 2 months after beginning, Fontenay Operating Partner identifies one of the managers as a capable successor. Since then, he is associated to all important decisions and is trained to take over all responsibilities in a cautious way.