What our clients say:
“This is the best business turnaround plan we have ever seen.”
PwC Transaction Services audit report
“You guys are really pulling up trees! My two main customers have both commented on what an amazing job you are doing.”
Effective operations turnarounds work fast to make a business cash positive and increase enterprise value through the creation of a leaner, faster operating platform. The best solutions are based on astute assessment of what is possible and practical with the resources available.
Crimson & Co applies its formidable and rapid performance improvement techniques to businesses in distressed financial states, where there is a need for drastic change in short timeframes, and where the focus is on short term cash flow and longer term foundations for success.
We understand the key client issues of creating enterprise value, meaning that the operations strategies we develop have to enable an exit in line with the business plan, and working within the debt framework and cash constraints.
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We unlock value from our clients’ operations, by: range of stakeholders
Our solutions are practical and achievable, and therefore we are prepared to share the risk with the client and base a proportion of our fees on the success of delivering our promises. |
Specialist services
We are not a one-stop turnaround shop, but are a specialist provider of operations improvements that enable businesses to become profitable and build a solid platform for future growth. We join forces effectively with other members of the turnaround team, including finance specialists, marketeers, non-executives and key interims, to make the turnaround happen.
Danoptra (Gamestec) This £75m turnover company, part of a larger group, was loss-making and in significant debt to five different banking groups.
Crimson & Co was engaged to develop an operations-led turnaround strategy and business plan. We joined the group’s new CEO in the presentations to the private equity shareholders and banks; the result was that the banks backed the turnaround plan and provided the necessary funding.
Crimson & Co then led the turnaround programme, with the main components being: depot and workshop closures; distribution network rebalancing; moving from a local to national field force of service engineers and cash collectors; inventory reduction; indirect procurement savings; improved systems and administration; and, splitting the commercial function from operations to provide focus.
Our role covered all levels in the organisation, from setting the direction with the main board to making the changes on the shop floor.
The work was completed within the planned 10 month timeframe and exceeded expectations: savings of 18% out of total cost base; restructuring complete with no service loss; 20% staff reduction; finished goods inventory reduced by 20%.
This work has created an agile, sector-leading solution that has transformed the business into a positive EBIT situation despite a declining market and, even allowing for implementation costs, will enable the business to begin repaying its debt within 20 months of the project start.