RECUPERATION SUPPORT SERVICES
During each type of economical culture, there are always companies who are facing bad weather and have to struggle for live. It might be due to market forces (competition, import duties, logistics, subsidized operations or export e.g), it might be due to internal organization, wrong technology, outdated production equipment, lifecycle-ended products. But also due to political and/or economical instability in the respective country.
As a result, companies might go bankrupt or go into receivership. Assets of such companies often turn out to be (almost) worthless. Sale of used production equipment and/or premises by auction does normally generate only a minor part of the real value. Goodwill is minimized due to the fact that the products and/or services are no longer available to the market. Hence, forced capitalization often only covers a small part of the depths. And the most important asset of an industrial company, experienced labour, is vanishing. Leaving the equity/share holders, financiers and/or banks (who often keep the shares as security for loans) with very limited perspective.
In situations like above, ENC Industry is often capable of revitalization and re-activation of such a company. And by that we "re-capitalize" its worthless assets and reduces or minimizes the losses.
With interested parties (bank, financier) as principal, we execute our Recuperation Support Program in 4 stages:
- Portfolio analyses (quick-scan of companies). Informative, non-contractual and free of charge.
- Pre-feasibility study focused on the selected company. Scope is to determine wether the company has the potential for a re-start. This study includes the analysis of production equipment, technology, working methods, product range, product quality and specifications, organization, (raw)material situation, markets and trends, potential participants e.g.. The study will be executed against fixed cost budget. The study generates tools for a go/non-go decision towards step 3.
- Feasibility study. Scope of the feasibility study is to generate a business-plan for the re-start. Organization, labour qualifications, production equipment, product and production technology, products, markets, participants, investments. The study will be executed against fixed cost budget. The study generates the tools for a final go/non-go decision regarding the restart plus, in case of a re-start, the "manual" to execute the re-start.
- Implementation of the business-plan. ENC Industry can act as project-manager with overall responsibility or as coach of the new management team, giving them the support and assistance needed to implement the business-plan.