Sustain your financial position and thrive in tough times.

Restaurant chain

Once popular restaurant chains with more than 100 outlets including direct-owned and franchised shops had a turnover of USD 40 million in 2004. However, intensive competition in the segment while lacking unique value proposition deteriorated the company’s business gradually, and revenue plummeted to USD 8 million by 2012. The company filed bankruptcy in 2013 and was looking for a turnaround financial sponsor.

We, YCP Solidiance, succeeded the business and took an intensive cost reduction to turn the business profitable only after 5 months of the succession. We dispatched directors into the company and ceased operation of the unprofitable outlets. By strengthening new menu development, distribution logistics, and franchising function, we resumed the opening of new stores since 2015.

Automotive parts supplier

Client was suffering from low profitability due to high production cost yet was not able to identify what cost to reduce due to lack of visibility of cost structure. From our initial investigation, such phenomenon was caused by the fact that the standard cost was incorrectly calculated. In addition, and that the actual cost calculation was not properly reflecting the incurred labor cost and overhead.

We, YCP Solidiance, were asked to overhaul the cost calculation system to visualize the cost structure and to implement the cost reduction activity. After analyzing the AS-IS actual cost, we redefined standard cost calculation logic to reflect the actual cost and implemented the changes throughout the production process from procurement, production, and distribution. After running implementation of the new calculation method, we developed managerial accounting by products and analyzed profitability by product to recommend the client to either discontinue the product line or run cost reduction activities. For the cost reduction activities, we simulated the P&L by products, set the cost reduction target by each cost drivers, proposed lean management ideas to make the process efficient, and checked the progress monthly.

Food manufacturing and retail

Client develops, manufactures, and sells bottled products such as jam and dressing. While its brand being popular, client invested in store expansion, but mismanagement of return on investment led the company’s financial situation become extremely severe with high level of interest-bearing debt.

We, YCP Solidiance, were requested to turn around the company’s tough situation from financial and operation viewpoint. We structured leveraged buyout loan from a debt fund to provide cash injection into the company. After the cash injection, we also dispatched 3 directors into the company under the CEO and led ceasing operation of the unprofitable outlets. We supported revamping the company by rebranding the products and concept and by gradually opening the outlets in higher traffic locations.

Multinational listed research service provider

Client’s subsidiary in Thailand was making loss over the years, and client had to provide loans to the subsidiary periodically to cover cash shortage. Client foresaw a risk that loan amount accumulates over the years without sign of recovery in the business. Client set 6 months deadline until discontinuing the subsidiary’s business to minimize the loss. Client even considered to liquidate the entity if there is no buyer in this business within the deadline, which impacts negatively from investor relations viewpoint.

We, YCP Solidiance, supported finding an appropriate investor to acquire the shares of the subsidiary, leveraging its network. We emphasized strategic value of the subsidiary to approach and successfully sourced multiple potential investors to be on the negotiation table, where we facilitated a bidding procedure for Client. We supported the due diligence process and negotiation on the terms of share purchase agreement until the closing on behalf of Client.

Cosmetics and health product manufacturer

While there was high demand for client’s products, client had difficulties to manage and control inventory, as well as to implement effective sales and marketing activities to capture the demand. One major reason for this was due to the ineffective organizational structure that they had in place, in which data and information were not sufficiently shared among the different departments. Under such situation, the shareholders decided to bring in a new management team and restructure the organization.

Under client’s new management team, we, YCP Solidiance, designed a new organizational structure throughout the company and advised the optimal placement of human resources. We also supported the planning and execution of business strategies and to stimulate growth globally