Germany’s third largest utility worked with BCG on a cost transformation that resulted in efficiency gains of 300 million euros. EnBW SVP Wolfgang Eckert explains.
Our Approach to Business Restructuring and Turnaround
Our team work with BCG’s industry and functional experts to help clients achieve the true goal of a full-fledged business restructuring and turnaround—to overcome a business crisis and return the company to a state of value creation—with strategic actions geared toward all three phases of the journey.
- Short Term. Stabilize the company, manage the liquidity crisis, and ensure sufficient working capital.
- Medium Term. Streamline costs and look for quick wins that can generate revenue growth and fund the journey.
- Long Term. Help leadership teams develop a new strategy for sustainable success.
Seven Actions for Companies Facing a Liquidity Crises
- Leverage a unique window of opportunity to increase prices.
- Collaborate with suppliers to eliminate costs.
- Unleash cash reserves in net working capital and capital structure.
- Balance delivery performance with inventory optimization.
- Mitigate rising labor costs and shortages.
- Reduce energy consumption structurally.
- Prepare to cut discretionary spending.
Our Turnaround and Restructuring Services
We have a broad portfolio of turnaround and restructuring services that we customize to fit a company’s unique needs and context, along with regional differences, regulatory considerations, and other factors.
- Turnaround Planning. Building an operational turnaround plan to restore the top line, profitability, and cash optimization
- Distressed M&A and Carve-outs. Developing buyer- and seller-specific M&A concepts for distressed companies and business units
- Independent Business Review. Assessing a company’s situation and plan to support discussions with management, shareholders, and creditors
- Restructuring Office. Working shoulder to shoulder with management to implement an operational turnaround plan and restore profitability
- Cash Office. Establishing a short- and medium-term cash trajectory through enhanced cash control and working capital measures
- Insolvency Support. Supporting management and shareholders to assess and steer restructuring and insolvency issues
Our Clients’ Success in Business Restructuring and Turnaround
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October 29, 2024
Video
July 14, 2020
How Governments Can Restructure to Better Serve Citizens
The most progressive governments are restructuring to provide citizens with end-to-end services through a single point of contact.
A large industrial manufacturer was burning cash because of poorly managed operations and a failure to anticipate changes in its market. We worked with the management team on a full business turnaround, selling off underperforming sites, optimizing the product portfolio, and revamping pricing strategies. The result? The company unlocked €230 million in recurring annual profit and $250 million in cash within 18 months.
Our Business Restructuring and Turnaround Solutions
Our special situations team has a collection of solutions to complement their turnaround and restructuring services and make progress with clients from day one. This toolbox includes turnaround levers and estimates by industry; working capital levers and estimates; cash modeling tools; and a battle-proven turnaround management, governance, and steering manual. In addition, the team leverages proprietary BCG products, including:
KEY Impact Management by BCG X
Our proprietary end-to-end program management tool enables companies to manage complexity during every phase of a transformation and secure implementation.
KEY Impact Management by BCG X
OrgBuilder by BCG X
BCG X's organizational design software provides a single source of truth to enable organizational transformation and facilitate change management.
OrgBuilder by BCG X
Cost Benchmark Index
BCG’s index of industry-specific cost benchmarks identifies a company’s potential through the phases of their business restructuring and turnaround journey.
Cost Benchmark Index
Our Insights on Business Restructuring and Turnaround
Article
May 2, 2023
Overall, European companies have done well in the past couple of years. High inflation and interest rates remain a challenge, but resilience is the key to further growth.
Article
October 24, 2023
The German real estate industry faces a liabilities “maturity wall” fueled by ongoing economic headwinds. Stakeholders can preserve value with operational, financial, and structural remedies.
Article
April 24, 2020
When a company’s existence is on the line, the finance department needs a laser focus on short-term liquidity.
Meet Our Turnaround and Restructuring Consulting Experts
Our special situations team has decades of experience supporting companies—across industries and regions—manage their business restructuring and turnaround. Here are some of our experts.
