Project

Strategic Business Review of appliances and consumables businesses

The market entry of new competitors and cost increases negatively impacted the sales volume and profitability of our client’s electrical/ pneumatical appliances and consumables business: In 2022-24, the EBIT and EBIT margin dropped by 7.3% or 9.8 percentage points, respectively. Helbling Business Advisors were mandated to review the strategic direction of the business and to develop and evaluate strategic options – underpinned by tangible improvement initiatives. The project scope encompassed the production site plus worldwide sales organisations with total sales of EUR 57 m.

Services

  • Analysis of market and competitors
  • Analysis of value chain as well as operational and financial performance, e.g. potential savings in procurement, productivity of assembly lines and logistics
  • Establishing financial transparency in the form of the Base Case
  • Identification and development of strategic options
  • Modelling and evaluation of strategic options based on qualitative criteria and NPV
  • Development of recommendations for action
  • Documentation for management as a basis for decision-making

Result / Success

Financial transparency of the integrated business was established based on robust analyses and the development of the Base Case. The identification and development of strategic options enabled an in-depth discussion about the strategic direction (“way forward”). The recommendation for action was derived from tangible initiatives for implementation, e.g. reduction of material costs, strengthening of sales, organic growth enabled by product development and market entry. The implementation of the preferred strategic option will reverse the downward trend in sales volume and increase in profitability sustainably.

Contact

Marcel Preisig

Hohlstrasse 614
8048 Zürich

Robin Drost

Hohlstrasse 614
8048 Zürich

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