Remako is a reputable off-spec paper and board trading company based in the Netherlands. When the founder thought it was time to retire, he discovered that his successor had introduced far-reaching strategic changes that proved largely unsuccessful. The only solution was for the founder to resume control. To complicate matters, Remako’s principal bank was uncomfortable with the deterioration in its financial ratios and the absence of a suitable successor.
Nimbus’ analysis showed that – whilst young – Remako’s team of paper traders was close-knit and highly knowledgeable. Although none of the team members possessed the required management experience, cooperation within the team was excellent. Having experienced that acquisitions are not necessarily accompanied by success, the team was hesitant to explore the management buy-out route. Money was needed however. An analysis of Remako’s financial position soon highlighted the need for a capital injection, allowing the company to strengthen its equity position, and, more importantly, pay its suppliers.
In the end, Nimbus and the existing team of traders jointly acquired Remako. Apart from contributing capital, Nimbus provides management support and acts as a sparring partner to the new management team. Nimbus also supports the administrative and financial operations and has developed a plan to bring operating costs in line with turnover. The use of an operational manager, who is available several days a week to optimise machine maintenance and efficiency, has also made an important contribution. Remako returned a profit within months of the above reorganisation, allowing the founder to retire at last, leaving the company in good hands.
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