From Cash Burn to Solvency: Restructuring a Distressed Asset
The Situation A portfolio company in the Netherlands was facing a liquidity crisis. Despite a strong product, the company suffered from bloated overheads, a lack of strategic focus, and ineffective leadership, burning through capital with no path to profitability.
My Intervention I stepped in as Interim Managing Director / CEO with a mandate to secure the company’s future.
- Immediate Stabilization: Implemented strict cash-flow controls and executed necessary personnel restructuring to reduce burn rate.
- Strategic Pivot: Refocused the business model on high-margin core competencies, cutting distracting “pet projects.”
- Culture Shift: Rebuilt the management team with a focus on operational excellence and accountability.
The Outcome Within 16 months, the company was stabilized. Financial targets were not only met but exceeded, and a clear path to sustainable growth was established, securing the shareholders’ investment.