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.

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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.

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Our responsibilities included:

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1. Implement a rapid financial, commercial and operational diagnosis of the current status of operations;

2. Restate accounting statements from Greek financial standards into IAS-congruent standards and implement a management accounting analysis;

3. Develop a financial restructuring plan which would allow the client to attract new equity investors into newly-formed subsidiaries;

4. Develop a valuation of the company as a going concern;

5. 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.

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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.

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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.

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For further information on our services in Greece or in financial restructuring and turn-around management, please contact us.