You are a shareholder or Director, and a worsening situation poses an immediate threat to your company’s existence.
What is the reality of the operational and financial situation, particularly cash flow? What urgent measures should be taken, and what action plan needs implementing? Which management resources should handle the crisis? How can you involve your staff and reassure customers, suppliers, banks and the authorities? To support you through such a crisis, Eurosearch & Associés works with you to create a long-term relationship built on trust, and based on a confidential and thorough line of questioning.
We will take the situation in hand over a period of two to five days, if necessary with executive power. As quickly as possible, we carry out an audit, submit recommendations, support the launch and implementation of the action plan that has been accepted by shareholders and key partners (banks, suppliers, customers, authorities, etc.) while ensuring that management and employees are kept informed and involved.
More than 40% of our executive interim management work is dedicated to crisis management with investment and family businesses, fund holdings, and subsidiaries of French and international groups. With these problems, we offer the combined experience of our partners, who are experts in the field, and a highly qualified network of hardened specialists who are well used to handling crises.
A few examples of our work:
- Local authority, higher education: recovery
- Internet, investment fund holding: continuation plan and partial disposal
- Transport, family business: audit and recovery
- Specialist retail, investment fund holding, continuation plan and recovery
- Service, cooperative: customer service crisis and restructuring
- Retail, grouping: audit and labor relations
- B2C service, investment fund holding: labor relations
- Pharmaceutical industry, subsidiary of an international group: R&D crisis and restructuring
- Real estate, investment fund holding: audit and labor relations
- Industry, Eastern European subsidiary, investment fund holding: recovery
- E-commerce, subsidiary of an investment group: recovery
- Renewable energies, European subsidiary of a family-owned group: audit and recovery
- Industry, family business: audit and industrial restructuring
- Transport, European subsidiary of a family business: recovery
- Construction, investment fund holding: audit and recovery
Client case studies
An investment fund was facing the liquidation of one of its portfolio investments via an LBO. Following a Board meeting attended by all of the company’s stakeholders, the fund and the independent administrator agreed on the dismissal of the executive Chairman, who was largely responsible for the situation and was difficult to control. Without a Chairman, the general management, made up of two Directors responsible for operations and finance, respectively, could not manage, on their own, operations as well as demands relating to the liquidation, and relations with the fund and banks.
So the Board of Directors decided to put in place a dual governance, bringing in a non-operational Interim Chairman with proven expertise in this type of crisis.
Eurosearch & Associés involvement
Eurosearch & Associés was contacted to choose the most suitable Interim ExecutiveDirector:
- We identified and proposed a Non-Executive Interim Chairman with experience, seniority, a suitable personality and knowledge of liquidation procedures, investment funds and companies in an LBO
- We put our solution to the legal administrator and commercial court, and despite them favoring immediate liquidation in principle, both accepted it
- We separated the role of operational management from the Non-Executive Interim Chairman, who was then able to focus on relations with investors, shareholders and bankers, particularly with the majority stakeholder, the investment fund, and support general management in their relations with the bankruptcy judge, the administrator and the court officer, as well as the lawyers
- The Interim Chairman played an active role in many meetings and hearings with procedural bodies and the investment fund
- The Chairman oversaw decisions taken regarding company personnel through regular and specific briefings
By putting in place this dual governance:
- The company avoided immediate liquidation
- The company Directors and legal administrator gained the time necessary to draw up and implement an exit plan
- The company was acquired by an international buyer
- Two-thirds of the workforce kept their jobs
- The company recovered a significant portion of its fiscal and employee liabilities