As a result of two shareholders combining forces a number of privately owned manufacturing companies were operating in “silos” even though they were within the same operational space.

Objectives

To present the Owners and the Directors with an operational model that enhanced the collective nature of the combined operation.

Task

  • Detailed analysis of each of the companies and the market that the group operated in was undertaken.
  • A detailed report and step-by-step restructure document were produced and presented to the Business Owners and Directors.
  • The agreed upon approach following discussion with the Business Owners and Directors was put into action.

Result

  • The group of companies was rationalised by closing businesses and merging productive capabilities.
  • Redundant activities were eliminated.
  • Bulk buying discounts were achieved with the Group’s suppliers resulting in cost savings of between 12% and 20% through the introduction of a centralised purchasing department.
  • A significant reduction in the cost base of the restructured group lead to the distribution of enhanced profitability to the shareholders.