The Client
A medium-sized company in the food industry based in northern Germany was on the verge of insolvency. The causes included sharply rising raw material prices, inefficient production processes, and an outdated sales strategy. The management was overwhelmed and the organization demotivated. To avert the threat of insolvency and strategically realign the company, an experienced interim CEO with extensive restructuring experience in medium-sized companies and the food & beverage industry was brought in.
The Challenge
The company was in serious operational and financial trouble. It only had enough liquidity to last a few weeks, and the banks had lost confidence in it. It lacked clear management structures, robust planning, and a sustainable strategy. Production was inefficient, the cost structure was uncompetitive, and sales were hardly digitized. The goal was to secure solvency in the short term, stabilize the organization, and undertake a strategic realignment in the medium term—all under considerable time pressure and with limited resources.
The Solution
The interim CEO worked with the management team to implement the following measures:
- Introduction of short-term liquidity management and negotiations with banks for bridge financing
- Restructuring of production processes to reduce manufacturing costs
- Introduction of a new sales model with a focus on digital channels and direct sales
- Establishment of transparent controlling to manage costs and margins
- Development of a new brand and product strategy for differentiation in the market
At the same time, management structures were streamlined, responsibilities redefined, and internal communication significantly improved.
The Results
Within nine months, the following results were achieved:
- Securing solvency through successfully negotiated interim financing,
- Reducing production costs by 9% through process optimization and better capacity utilization,
- Increasing direct sales revenue by 12% through digital sales initiatives,
- Introduction of a KPI-based control system for better control of costs and contribution margins,
- Restoration of trust among banks, suppliers, and employees.
The company was able to avert insolvency, stabilize its operations, and now has a clear strategic direction for profitable growth in the food industry.
Looking for experienced interim leaders to drive transformation and ensure business success? Contact Dr. Thorsten Dörr, Managing Partner at Boyden Interim Management, to explore tailored solutions for your organization.
