Holding of enterprises of a single cycle for timber procurement, production and sale of furniture, North Ossetia
Financial recovery and pre-sale preparation of companies

Customer's sutuation

Shareholders of a full-cycle furniture factory with unique long-term lease rights for 35 thousand hectares of valuable beech woodland, with the right to cut it down, and its own distribution network, asked for assistance in selling it to external investors due to their desire to retire due to old age. The situation, however, was complicated by the fact that the company had a hard time surviving the pandemic period, was unable to adapt in time to the new realities, aggravated by country sanctions, and lost part of the market, resulting in cash gaps. As a result, the company's financial condition at the time of negotiations with investors could not justify the valuation of the company that the sellers wanted to receive. An additional obstacle to the deal was the shareholders' inability to finance the modernization budget.
Project tasks
Conduct management and operational diagnostics of companies. Develop financial recovery measures to increase the shareholder value of the entire holding, prepare for a business sale transaction.
Effect
A comprehensive management and operational audit of the company was conducted, with an expert sent to the factory, for all functional units: logging, production and logistics, sales. An array of data was collected and analyzed, a detailed report was prepared and a short-term financial recovery plan was proposed, based on the replacement of contractors, optimization of logistics and individual production processes, the production itself was reoriented to the release of secondary products - furniture blanks and boards for the period of recovery from the crisis. The Argus project group also strengthened the company's existing management resource, providing it with the necessary additional competencies in organizing sales.

These measures allowed us to stabilize revenue in a short time, stop staff turnover, and raise the estimated value of the company to the target.