Strategic turnaround & restructuring of a European fintech
Client Requirement
Our client, one of the largest global private equity investors, had acquired a fast-growing global Financial Services business with significant operations in Europe. The European business was losing revenue, profit was eroding even faster and feedback from management had not pinpointed either the root causes or options to address the situation
OUR ROLE
Arundel was asked to complete a business performance review and to develop a recovery plan. We found that increasing competition had driven margins on the core business to a very low level. Furthermore, the acquired business had never been integrated into the parent – leaving duplicate systems and processes in place resulting in an inability to introduce new global products and a high cost-base
We recommended and then implemented a turnaround plan which included three components:
- Immediate restructuring actions to control costs
- A new market strategy focused on segments with lower competition and higher margins – and the launch of new global products to service these
- A business integration programme designed to first enable the new product launches, followed by the retirement of costly legacy systems and processes
This approach stabilised the business, opened up a new more profitable revenue stream and significantly simplified the operation increasing agility, adding focus and reducing costs.
Business Outcome
- A significant organisational restructure was completed ultimately reducing headcount by 40%
- New products were successfully launched
- Retained legacy business was migrated to the parent company’s systems and processes
- Legacy systems and data centres were closed down
- Supply chain operations were consolidated to the parent’s systems and redundant warehouses closed
- The profit slide was stopped, the business has traded profitably since the turnaround and is growing again at 30% p.a.
Completion Date: May 2022
