Restructuring and Cost Management
Securing liquidity and reducing costs
Expectations on the capital markets, economic fluctuations and new competitors: the challenges facing companies are manifold. Anyone wanting to enjoy long-term success must continuously question their actions. How can we reduce our administrative costs? Do we have an optimal number of locations? How can we prepare ourselves for the next crisis? Those who fail to find the right answers in time run the risk of losing market share, of falling profits or revenues, or even of running into liquidity problems which could threaten their very existence.
To avoid this fate it is imperative that a company is able to react quickly. Only in this way can a life-threatening crisis be avoided and only in this way will the management have enough room to maneuver.
We provide support for companies of all sizes in making the necessary changes, regardless of whether they wish to prepare themselves early for the future competitive environment, whether they have already experienced a deterioration in their competitiveness, or whether their company's survival is already under threat. Our goal is always to improve the efficiency and effectiveness of organization and processes in the short term, to achieve sustainable increases in earnings and to enhance the company’s long-term value. At the same time, it is vital to secure the company's vigor and its ability to manage and steer its operations.
The fields where it is possible to take actions are as varied as the causes of the crises themselves. To maximize impact, we always tailor our solutions to suit the specific situation each individual company faces.
Optimization of capital and resources tie-up
- Ensure liquidity (e.g. working capital management).
- Optimize financial planning and asset management.
Cost reduction and optimization in production and administration
- Adjust internal services and service levels to appropriate level.
- Change structure of products and product ranges.
- Optimize organizational and operational structures.
- Consolidate locations.
- Improve the real net output ratio (make, buy or share).
- Optimize purchasing conditions and supplier structure.
Short-term increases in turnover
- Carry out short-term sales promotions.
- Undertake ad-hoc improvements to marketing and sales efficiency.
Restoration of strategic competitiveness
- Modify the business model.
- Change the portfolio (invest / de-invest).
At Horváth & Partners, we offer the activities described here as modules in different project types, depending on your company's individual situation:
- Quick scan.
- Growth readiness check.
- Restructuring in-flight review.
- Day 1 readiness check (M&A / PMI).
- Restructuring concepts.
- Implementation of restructuring concepts.
What makes us different
As controlling experts, we at Horváth & Partners have the necessary understanding of the cash flows and cost structures our clients experience and know how to apply target-based methods and tools to analyze performance problems.
Our expertise in Performance Management means we have in-depth knowledge of current developments in designing highly productive organizations and processes. Our hands-on mentality, paired with what we know about our clients’ management control systems, ensures rapid implementation and sustainability.
In contrast to our competitors, our approach is strictly team-based and combines the management-driven top-down view with bottom-up verification, thus fostering the implementation support provided by our employees.
Our project teams always consist of experienced restructuring consultants working hand-in-hand with industry experts. This enables us to ensure the special conditions which apply in your specific industry are also reflected in the solutions we develop.
Why not drop us a line – we’d be delighted to talk to you in more detail about our references!