Case Study

Restructuring at Manufacturer of Medical Technology

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At leading German manufacturer of medical soft tissue

A leading medical technology manufacturer in Germany, specializing in implants, was facing considerable challenges: Global supply chain problems, recruitment difficulties and a decline in sales due to undelivered customer orders. As measures, a savings program was implemented, investment projects were stopped and an interim CFO took over the management. Successes include the waiver of further covenant breaches, sales growth and consolidated annual financial statements with an auditor’s opinion.

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Company Details

Global leader in implants for reconstructive and aesthetic surgery
Exporting 1,700 products to 80+ countries across 5 continents
Approx. 280 employees, €67m turnover

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Situation and Challenge

Global supply chain and recruitment difficulties
30% of customer orders undelivered, impacting sales
Loan covenant breached, CFO departure
Appointment of Atreus Manager as Interim CFO

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Objective and Tasks

Stabilize earnings and liquidity
Reassure syndicate banks, prevent legal action
Focus on sales, earnings, cash flow, cost reduction
Enhance reporting with margin analysis

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Measures and Procedures

Preparation of a forecast, sensibilization of the CEO, the advisory board and the main shareholder for the danger of a renewed covenant breach with the threat of insolvency
Immediate savings program: hiring freeze, travel ban, postponement of projects lacking immediate impact on earnings, freezing of key investment projects
Improve coordination between management, advisory board and main shareholder through more structured process and expansion of the group of participants

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