All’s Well that Ends Well

Client Challenge

  • For years, the subsidiary of a European leader in wholesale distribution burdened the result of the parent company without noticeable value added for the total group. Significant losses in the operative business necessarily led to the question about the future of the subsidiary.
  • Our client, the General Manager of the parent company, engaged Mandat with supporting the management in the strategic decision on the future of the subsidiary.

Mandat Intervention

  • In several facilitated workshops for both the management of the parent company and the one of the subsidiary we accurately assessed market chances and operating risks. Market and competitive information was compiled and selectively integrated in the discussions.
  • A multi-level decision-making process designed by Mandat served to evaluate facts, work out opportunities for development and alternatives for the future, and to prepare a final recommendation.
  • The decision was made unanimously.

Results

  • The subsidiary was liquidated. The most efficient employees found positions of broad responsibility within the group.
  • Profitable key activities of the subsidiary were re-integrated into the group, where they were continued.
  • Annual savings in losses for the parent company: approximately 2.5 million Euros.

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