Restructuring | Turnaround aiming professionalization governance and longevity

WOOD AND FORESTRY

RESTRUCTURING FOR ECONOMIC AND FINANCIAL TURNAROUND WITH INTERIM MANAGEMENT SEEKING PROFESSIONALIZATION, CORPORATE GOVERNANCE AND LONGEVITY, AT SHAREHOLDERS INITIATIVE.

DEMAND: Family business in the third generation, producer and exporter of processed wood products for civil construction, had a deficient operation and loss in its only unit, having a liability of R$ 110 million (equal to its annual sales), unpayable only with the results of its operations. Directed by 4 of the partners, the other 120 heirs and partners demanded better performance and many demanded the replacement of the executive group. In summary, the economic and financial situation was very bad and the corporate climate was litigious.

SOLUTION: Diagnosis by the Orchestra - Soluções Empresariais team, identified a lack of governance, analytical and managerial capacity, strategy, unity of purpose and action. This led to an action plan approved by the shareholders, and implemented by our crew, which included legal support, involving: removal of shareholders from executive functions; interim assumption of the CEO position by one of our professionals; Management staff evaluation and adjustments; remodeling of the structure and commercial policy; restructuring of the registration, accounting and control system; formal strategic planning process; renegotiation of liabilities, consensual and friendly where possible and legal review where necessary; implementation of the Board of Directors, under the chairmanship of the mentor and leader of Orchestra; replacement of the independent external audit; formalization of the Shareholders' Agreement.                                                                                  

OUTCOME: In 3 years, due to the purchase of a competitor and the leasing of two other facilities, the company was then operating with 4 units, its sales doubled and its exports diversified to other continents than the American. Bank liabilities were reduced from R $ 110 MM to R $ 20 MM, to be settled in 48 months. Half-yearly meetings with all shareholders, supported by a signed Shareholders' Agreement, liquidity viability for some minority shareholders who wished to leave the company and the company fully recovered, brought back the corporate and family harmony, ending the need and presence of our team.