Turnaround advisory in logistics

Situation

The Company, an international player in logistics with approximately €65m in revenue, found itself in a vulnerable financial position following a turbulent period. An earlier acquisition had significantly increased the debt burden, after which market pressure and underperforming results placed liquidity under strain and covenants were not met. The principal bank requested an independent party to provide insight into the financial situation and the outlook going forward.

Solution

Beaufort prepared an Independent Business Review as part of its turnaround advisory services: analysis of the business model and market, historical financial analysis, validation of the management forecast including sensitivity analysis, and an indirect cash flow projection. The activities were reviewed per business unit, with particular attention to the differences in asset-heaviness and risk profile between the two operational pillars. On this basis, concrete recommendations were formulated for strategic realignment, and a sensitivity scenario was developed that quantifies the scale of a potential funding gap. The report provides the Company, its shareholders and the financier with a shared factual basis for next steps regarding asset strategy, partnerships and financing structure.