Galeazzi & Associados prides itself on its distinctive record in this area. We have supported radical transformation processes in companies faced with the need to adapt to a new reality.

Our work includes a strategic-operational diagnostic of the current situation, identifying main problems and opportunities, then moves on to develop and implement a macro action plan and methodologies and, in some cases, Interim Management.

Implementation

A detailed assessment is made of the information available in all areas of the company to find the source(s) of the problem(s), and look for short and medium term improvement opportunities. Following this, a macro action plan is suggested to overcome the problems identified and capture opportunities. Once this plan is approved, a joint effort of client executives and Galeazzi & Associados professionals implements the plan using selected actions and methodologies.

As a rule, there are three major phases in any corporate restructuring process: Turnaround, Development and Stabilization. The primary focus of the first phase is normally cash generation and cost reduction . The second phase focuses on market and internal processes and the final stage seeks to ensure that improvements can be sustained and that the profit situation is consistent ( stable ).

The time to “turn the tables” is the first phase. A Strategic-Operational Diagnostic is conducted and a Macro Action Plan developed. Following this, a new Strategic Architecture is designed, including guidelines and strategic options for each major area: finance, market, processes and people.

All client Directors, Managers and Supervisors are involved in preparing the budget, which may be based on Zero Based Budgeting. This will prioritize the allocation of existing resources to the strategies defined in the previous step. Once the budget has been defined, efforts can focus on cash generation, on eliminating activities that do not add value, adjusting the company's structure and eliminating inefficiencies.

Over time, the second development phase will look at a restructuring the commercial area, increasing sales, improving management and leadership skills, process review, implementing adequate systems and strategic investments. This will lead into an entrepreneurial stage. The third phase, stabilization, will consolidate the preceding efforts and will involve empowerment, consistent controls and management systems, as well as profit generation. In cases where an Interim Management will be put in place, this phase will also include the transition of the management team, strategic planning and administration and preparing the business for a potential sale, merger, equity proposal and/or offering of shares.

Target Clients

Companies facing declining profitability, in financial difficulty or distress, experiencing operating losses and shrinking sales.

• Client Examples