How we helped
During a restructuring, our client had to comply with mandatory top-down liquidity and working capital targets while operating steel tube manufacturing plants across Europe and North America.
AlixPartners set up a liquidity management and working capital program, targeting a reduction in working capital from 20% of sales to 12% in Europe, and from 38% of sales to 12% in North America, within three years. We defined program governance from the C-suite on down to operational units, providing actionable operational targets, and developing monthly reporting to capture the impact.
The long-term value-add wasn’t just in the financials, which saw free cash flow up 60% over budget, and millions of euros in cash contributions. The buy-in from stakeholders to the transformation, and subsequent results, which proved that the company could achieve more, left the firm with a strong "can do" attitude.
60%
growth in free cash flow