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Precision CNC machining, the core business of the restructured special-purpose machinery builder.
Out of the red and back into profit in around 16 months: under Herakles leadership, a mid-sized builder of precision CNC special-purpose machines lifted its EBITDA margin from −63 % to +7 % and more than doubled its revenue from €6.8m to €13.9m.
The company, a builder of precision CNC special-purpose machines with around 160 employees, was geared exclusively to the automotive industry and supplied OEMs as well as tier-1 and tier-2 suppliers. A misguided strategic direction met a marked drop in demand and led to dramatic falls in orders and revenue. The EBITDA margin stood at −63 %, and the survival of the company was acutely at risk.
Herakles was mandated as Chief Restructuring Officer (CRO), with full operational responsibility and a direct reporting line to the owner. The mandate combined short-term financial stabilisation with a fundamental strategic realignment and its operational delivery, over a term of around 24 months.
First, radical cost management secured liquidity and created the necessary room to act. In parallel the strategy was reworked at speed: two core development projects were distilled out of the existing development portfolio and made the basis of a new, modular product range. This platform was developed with in-house and external resources, turning a former single-product supplier into a range supplier.
On the sales side, dependence on individual customers was reduced by deliberately opening up three central automotive markets: Europe, the USA and Mexico. Operationally, tight shopfloor management was added, which is considerably more demanding in one-off production than in series production. A combination of lean management and the Herakles TOP approach was used, and substantial synergies were realised in pre-engineering and in the modular design of the new series in particular. The realignment was accompanied by a step-by-step rebuild of the leadership team.
The turnaround was achieved within 16 months, and after the mandate ended the company reported a positive result again. The EBITDA margin rose from −63 % to +7 %, revenue from €6.8m to €13.9m and productivity from 63 % to 92 %. Of the original 160 jobs, 100 were secured, and the company was re-established as an independent, competitive supplier.
„You really helped our company a lot — thank you for your hard work.“
— Owner of the company
| Phase | Restructuring (out-of-court turnaround) |
| Herakles role | Chief Restructuring Officer (CRO) |
| Industry / region | Special-purpose machinery (precision CNC) / Upper Austria |
| Mandate duration | around 24 months (2022–2023) |
| Procedure | Out-of-court restructuring |
| Result | Turnaround achieved; positive annual result after the mandate ended |
| Jobs | 100 of 160 secured |
Contact: Dr Bernhard Morawetz, Herakles Management · b.morawetz@heraklesmanagement.com
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