Financial Restructuring: Greek Listed HVAC Importer
Navigator Consulting completed the financial analysis for restructuring of a leading Greek importer and distributor of heating, ventilation and air-conditioning products.
Our client is a leading importer and distributor of heating, ventilation and air conditioning (HVAC) products, with important subsidiary lines of consumer electronics and white goods. Based in Athens, our client works with a range of international brands and functions as an importer and distributor.
Listed on the Athens Stock Exchange, our client has seen a 50% decline in sales as a result of the Greek financial crisis. Despite this pressure, all loans continue to be serviced and our client is in good standing with his creditors.
Our responsibilities included:
Implement a rapid financial, commercial and operational diagnosis of the current status of operations;
Restate accounting statements from Greek financial standards into IAS-congruent standards and implement a management accounting analysis;
Develop a financial restructuring plan which would allow the client to attract new equity investors into newly-formed subsidiaries;
Develop a valuation of the company as a going concern;
Develop a 5-year turn-around plan based on the attraction of new capital and the consolidation of other suppliers in the Greek electronics, HVAC and white goods markets.
A project team worked intensively at the client’s facilities in Athens for 3 weeks to implement a detailed financial model, restructuring plan and investment memorandum.
This project, implemented at the height of the Greek financial crisis but before the January 25th elections has been highly instructive in understanding how mid-cap Greek companies have dealt with the crisis: falling disposable income; falling sales; price competition; product substitution; elimination of working capital by the banking system; staff restructuring; and turn-around management.
For further information on our services in Greece or in financial restructuring and turn-around management, please contact us.
Date of Engagement:
August - October 2014
Countries of Operation:
Corporate Strategy, Investment Advisory Services
Heating, Ventilation, Air Conditioning (HVAC)