When operations are restructured effectively they can rapidly make a business cash positive and increase enterprise value. Crimson & Co is a specialist supply chain consultancy with expertise in Operations Restructuring. We have in-depth experience of working with leading private equity firms to maximise portfolio value by providing independent due diligence, ground breaking performance improvements and sale readiness preparations. We work across a variety of sectors around the world, in particular consumer goods, retail and leisure. We have an excellent reputation for developing and implementing rapid and effective performance improvement programmes. Our solutions are based on astute appraisals of what is possible and practical with the resources available. We deliver this through:
Gamestec is the leading operator of gaming machines to the pub and leisure sector and in recent years has seen its profitability collapse due to tough market conditions and the increased competition from online gaming. Gamestec needed to cut operating costs whilst improving the customer proposition to ensure that it survived the market shakeout. They also needed to reverse the negative EBIT trend and find ways to dramatically reduce the Group’s c. £100m debt. Crimson & Co was engaged to develop and then implement an operations-led turnaround strategy. We joined the group’s new CEO in presenting to the PE shareholders and banks and led the turnaround programme, with a team of 15 on the ground.
Result – The restructuring of the business was significant:
Reduction in headcount by 20%
Reduction in operating costs by 15%
Breakeven within 20 months, 7 months earlier than planned
In July 2008, and in a complete turnaround compared with a year earlier, our client was able to buy its main rival and consolidate its position in the market. Crimson & Co is now supporting the 6 month integration programme.
“Crimson & Co developed and drove the rapid restructuring of our operations and in doing so, were instrumental in the turnaround of our business. Highly professional and impressive, both on the shop floor and within refinancing and acquisition environments, they helped us stabilise the business at the same time as dramatically cutting our costs.”
“This is the best business turnaround plan we have ever seen.”
Transaction Services audit report