Carve-out & liquidation of a distressed business

CONTEXT

• The Client is a large Chinese corporation, a national leader in TV and telecommunications, with a worldwide footprint built through acquisitions
• They have decided to halt one of their loss-making activities (€1m / week), recently acquired and faced with new technology substitution. Complex and not yet fully under their control, the business is mainly based in Europe

OBJECTIVES

• To divest European activities at the lowest possible cost, while avoiding exposing the group image to damaging social or political issues

TASKS

• Clarification of the balance sheet and P&L situations
• Control of cash operations and accounts receivable
• Setting up of daily review of managerial operations, and interface with shareholders
• Closure of European commercial subsidiaries, redundancy plans in each country, interfacing with business jurisdictions

OUTCOME

• Activity fully back under control within 2 months, in particular cash and creditors / debtors
• Reporting and optimized management of the liquidity contributions of historic shareholders
• Gradual downsizing of staff and overheads without social explosion, and eventually on-time divestment