Manitou Group's Capital Restructuring

SITUATION

In early 2023, Manitou Group, a French manufacturer of handling equipment, faced a critical juncture. The company had ambitious expansion plans but was constrained by its existing capital structure. Manitou needed to optimise its financial resources to fund growth initiatives, enter new markets and invest in innovation, all while maintaining financial stability and regulatory compliance.
The company’s leadership recognised that their current financial structure was not conducive to their growth aspirations. They needed a comprehensive capital restructuring plan to unlock the company’s full potential.

SOLUTION

Manitou Group undertook a strategic capital restructuring initiative:

1. Conducted a comprehensive review of the company’s financial structure with external consultants.
2. Refinanced existing debt to secure more favourable terms, reducing interest expenses by 15%.
3. Issued new equity, raising €200 million in fresh capital to fund expansion projects.
4. Implemented a new capital allocation strategy, prioritising high-growth segments and markets.
5. Established a dedicated team for regulatory compliance in new markets, ensuring smooth expansion.
6. Divested non-core assets to focus on core competencies and generate additional capital.
7. Implemented a robust cash management system to optimise working capital.
8. Developed a comprehensive risk management framework to protect against market volatility.

RESULTS

By the end of 2023, Manitou Group’s capital restructuring yielded significant benefits:
– 25% increase in production capacity
– Improved debt-to-equity ratio from 0.8 to 0.6
– Successful expansion into two new European markets and one Asian market
– 12% increase in overall operational efficiency
– 20% growth in revenue from new product lines
– 15% improvement in return on invested capital (ROIC)
– Enhanced financial flexibility to pursue strategic acquisitions

Manitou Group’s successful capital restructuring underscores the importance of strategic financial planning and restructuring. At Aysen Consulting, we offer expert capital planning and restructuring services that help companies optimise their financial resources, improve liquidity and achieve their growth objectives. Our tailored solutions ensure that our clients can navigate complex financial landscapes and maintain regulatory compliance.