Restructuring | Turnaround aiming at selling the company

ECONOMIC AND FINANCIAL INFORMATION SERVICE

TURNAROUND WITH INTERIM MANAGEMENT AIMING DIVESTITURE AT SHAREHOLDER INITIATIVE.

DEMAND: The second most important company to provide economic and financial information services via satellite in Brazil at the time, needed a total administrative, financial, accounting and controlling reorganization, to make it salable, since its shareholders had decided to leave the business. Purchase offers already received did not reach the desired and expected value.

SOLUTION: In 4 months, the interim management performed by associate members of Orchestra - Soluções Empresariais developed and introduced new administrative and financial procedures and management controls, centralized and electronic billing, statistics and sales controls, hired a new manager and replaced 75% of the administrative  staff. Auditing was implemented and the accounting was outsourced.

OUTCOME: The number of employees was reduced by 30%, the company started to have strict control criteria and became profitable, with substantial appreciation, having been sold 18 months later for a value 3 times higher than the proposals existing at the time of hiring our team. 

FOOD

TURNAROUND, AT SHAREHOLDER INITIATIVE, WITH PROFESSIONALIZATION, THROUGH INTERIM MANAGEMENT, AIMING SALE OF THE COMAPNY.

DEMAND: Centenary publicly traded, family-controlled company, manufacturer of meat inlaid food products, presented a serious economic and financial situation, with high indebtedness, losses, negative cash generation and gradual loss of equity value. The executive leadership was held by two of the 4 controlling shareholders, with a notable difference in management views. Considering also age and inadequate succession, this brought the decision to sell the company. Thus Orchestra - Soluções Empresariais associates were called for their experience in M&A.

SOLUTION: Our M&A specialists concluded that the sale was improbable at company’s current scenario, besides being inconvenient to do so, given the capacity and alternative for operational recovery and company valuation.

Comprehensive diagnosis led to a macro strategic restructuring and recovery plan suggested by our team, approved by the shareholders and immediately started. In summary, it involved a change and major professionalization of the Board of Directors, deactivation of the slaughter unit, sale of the breeding area, logistics outsourcing, real estate project in an available urban area, in parallel to several operational, marketing, commercial, controllership, planning actions. All of this was accomplished with interim management of the entire executive area by our team, besides participation in the new Board of Directors.

OUTCOME: The new corporate governance and management allowed the banking and fiscal liabilities to be peacefully renegotiated for periods compatible with the new payment capacity resulting from the set of coherent, clear and formalized corrective actions. The resources generated by the sale of assets were used to modernize equipment, expand capacity, research and product development, communication, etc. The company's recovery was recognized by marketing and quality awards, and allowed, at the end of the process, that it be sold to one of the industry leaders in Brazil for R$ 6.40 / share, an appreciation of 7,900% in relation to the R$ 0.08 / share in effect at the beginning of the involvement of the Orchestra team. After years, the company is still a success and is currently trading at R$ 75.00 per share.