For CFO’s

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Key issues that add value

As financial board members and managers, you work on operational andstrategic topics on a daily basis. You recognise room for profitability improvement that deserve serious attention. You need a feasible, realistic plan, with in-depth analysis and specific goals.

At such moments, additional insight can help you to make the right decisions.

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1. Can the organisation operate more efficiently and future-proof?

It is important to boost proactivity, customer focus and ownership/accountability.

2. What are your options for reducing both direct and indirect costs?

What are the maximum indirect costs you can incur in order to retain your competitive edge? And how can you get there?

3. Is there enough unbiased insight into current and future performance and risks involved?

You want better insight into how the company is truly performing and what needs to be done. However, the right ‘dashboard’, a good action plan and a sound forecast are missing.

4. Is stakeholder management set-up properly in your organisation?

You have to deal with an increasing number of external & internal stakeholders who each wish to be kept up to date.

5. How do you find the right interim or permanent managers and finance professionals?

As your organisation develops, it will require different competencies, or you may want to give your organisation a boost with temporary or new management.

6. Sell, optimise first, or acquire? You wonder whether it would be wise to sell the company now, or part of it, or to optimise it first.

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Valuable recommendations

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* Kruger is EACTP gecertificeerd

Effe

ctive

thinking Effective action

Effective calculations

Kruger* has three decades’ worth of experience in providing high-impact advice to companies looking to gain insight, become more effective and/or set out a new direction to deal with complex issues.

With years of hands-on experience in the Dutch mid-market and a history of analysing a wide variety of companies, Kruger often looks at companies and their (im)possibilities from a slightly different perspective than others.

Kruger’s relationships with companies and stakeholders are built on trust and open communication.

This results in honest, practical, no-nonsense advice.

Kruger is active in:Business ConsultancyCorporate FinanceInterim Management and Executive Search

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Organisations, or divisions, are often developed over the course of time. It is important to boost proactivity, customer focus and ownership/accountability from time to time.

Can the organisation be made more efficient and future-proof?

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The market develops rapidly, and organisations have to evolve at least at the same paceAll too often, the process of gathering information, carrying out the follow-up analyses and making a decision proceeds at a slow pace. Too many stakeholders have to weigh in. Lead times are increasing and are already unacceptably long. Ownership/accountability for topics or projects are fading.

Last but not least; employees have ceased coming up with ideas and believe there is a growing gap between them and HQ. Where do you go from here?

Organisational structure analysisAn independent analysis of management, reporting lines, working methods and qualities, both on the surface and hidden, will provide insight into where the bottlenecks are. Often, organisations can benefit from adopting a more horizontal structure, combined with clear tasks, responsibilities and authorities.

Implementing these recommendations will result in:Optimised organisational structureClear ownership and accountabilityBetter managementQuick & sound decision-makingIncreased motivationGreater efficiency whilst cutting costsFoundation for cost reduction

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In practice, costs have the tendency to become increasingly structural You suspect your organisation’s indirect costs to be too high. To what level areyou able to lower these indirect costs while retaining your competitive advantage? Variable costs depending on the turnover or production volume also tend to become less variable over time. How do you tackle this development?

What are your optionsfor reducing direct and indirect costs?

a

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How do you tackle these unwanted effects? One or more of the following analyses can create some much-needed clarity:

BenchmarkA benchmark is drawn up based on public information, sector reports and experience. This creates a clear picture, comparing your costs to those of similar businesses. This also provides insight into so-called ‘best practices’ and can shed light on which steps you can take to reach this level.Overhead analysisThe organisational analysis determines which requirements should be set for the overhead. The business-economic analysis aims to optimise the cost structure, with the desired organisational structure being a key input.Project management processSound project management depends on timely and accurate reporting and an adequate response to developments. Together with you, we analyse the process in order to map out opportunities for improvement.Other processesFor specific analyses of, for example, purchasing processes, logistical processes and automation, we work with preferred partners under our supervision.

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Project-oriented organisation scan The objective is to obtain high-quality, comprehensive insight into construction contracts, their quality, and future progress.

This is achieved by optimising insight into the extent of each project’s negative or positive contribution to profits and the underlying causes thereof.The next step is increasing the effectiveness of your project accounting,focusing on better control and sound predictive management information.

Example of two specific questions

b

costscoverageresultinvoiced

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Overhead scanThis creates a clear picture of the overhead structure:

To what extent does the structure suits the company’s strategy and objectives?Room for optimisation: opportunities for improvement and achievable short- and long-term cost reductions.To what extent is the level of indirect costs appropriate for the company?Which one-off costs may be involved in an optimisation process?

In addition to extensive knowhow and many years of experience brought to work, the scan is based on a benchmark of companies that are of a similar nature and/or in a comparable sector. Since indirect costs and direct costs interact, the overhead scan often delivers pragmatic recommendations to optimise direct costs as well.

Indirect personnel costs / revenue

companylargemediumsmallavg. best practices

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Sometimes, your company may fail to achieve its objectives, raising financial concerns as a result of unforeseen market changes, operational problems, poor management information, downright bad luck or a combination of factors. Real insight is lacking. An unbiased analysis of your company’s current position may help, including meaningful measures and future-oriented plans, as well as their influence on operations, liquidity and financing.

Is there enough unbiased insight into current and future performance and risks?

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You need better, unbiased insight into how the company is performing and what needs to be done. The right ‘dashboard’, a good action plan and a sound forecast based on continuous insight are often missing.

The analysis focuses on aspects such as:Market position and competitive position.Customer focus, vision and strategy.Organisation, management and entrepreneurship.Effectiveness.Professionalism of management information.Current status and forecasts for operating budget, balance sheet and liquidity.Sector-specific issues, such as construction contracts, work in progressand production records.

The analyses and practical recommendations can be used immediately to improve your returns by implementing the identified opportunities and chances.

This thorough analysis and successful approach mesh seamlessly with Kruger’s years of experience with corporate restructuring in all conceivable business sectors.

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Demanding stakeholders, action requiredA wide range of external stakeholders need to be kept up to date ofdevelopments within your company, including shareholders, the SupervisoryBoard, financiers, credit insurance companies, key clients and suppliers, trade unions and, in some cases, tax authorities.

Is stakeholder management set-up properly in your organisation?

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Information needs and obligations can differ considerably How do you communicate your situation and plans, what you are looking at and what you are working on accurately and carefully, so all stakeholders receive the information they need, without losing sight of the mutual relationships between your various stakeholders.

Kruger has ample experience in stakeholder management For Kruger, stakeholder management is a day-to-day reality. Thanks to its many years of experience in assisting and counselling companies, Kruger is highly capable of working with you to determine the information needs of your various stakeholders. We greatly value discreet and open communication with all relevant stakeholders.

Kruger’s commitment is of significant added value in this respect; management can benefit from having a committed, well-informed sounding board at its disposal, whilst external stakeholders generally appreciate having an independent, external party providing support and keeping an eye on the bigger picture when planning actions and providing objective information.

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More decisiveness is neededSometimes, circumstances may require a lot of attention but the right expertise or experience may be missing. Tailoring our approach to the company’s need will help the organisation improve, secure continuity or take the next step. You are looking to give your organisation a boost with temporary or new management and/or financial experts.

How do you findthe right interim management?

a

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Kruger Interim Management Provides a suitable interim manager with relevant sector knowledge, at least 15 years of experience and a high degree of executive expertise. Candidates are subjected to a strict selection procedure and some of them remain associated with Kruger.

Centre of Financial Expertise Kruger also provides temporary support to companies to help them improve their financial management and to coach employees and managers based on the following step-by-step plan:

Create a sound administrative foundation, optimise ERP systems and prevent manual workarounds.Improve periodic reports and increase automation if possible.Introduce reports on relevant business indicators by adding cross sections and external indicators.Improve the planning & control cycle by setting up a sound reporting structure and improving the budget cycle, making it easier for management to look ahead, rather than having to look back.Ensure real-time availability of reports with online dashboards (BI tooling).

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How to find the right candidate in a tight labour market? In a tight labour market, organisations are forced to make considerable effortsto find the right candidate. In addition, the required knowledge, competences and behavioural traits for management roles in medium-sized companies are considerably broader than for comparable positions in corporates. Recruitment and selection therefore require a customised approach.

Recruiting and selectingmanagement & finance professionals, a skill of its own!

b

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Kruger Executive Search Specialised in recruitment & selection for management and finance positions for medium-sized companies, starting at the € 70,000 salary level. Our strengths lie in general, financial and operational management. With regard to finance, we specialise in important financial positions in the field of control. Medium- sized companies are in a phase of increasing professionalisation, responding to an increasing need for better and more specific (automated) management information.

What are the benefits of working with Kruger Executive Search?Each assignment is carried out jointly by two professionals.Multiple recruitment instruments are used simultaneously; our own network, executive search and a tailor-made online campaign.Obligation to achieve results and split fees; the first part is payable upon signing the employment contract, while the second part is due three months after the candidate commences work, when everyone involved is convinced of the fit.

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A new strategy, impending succession, shareholders looking to realise an exit or pure necessity in case of loss-making activities, may lead to the intention to sell or purchase a company. In that case, some of the following questions may arise:

Is it wise to do so now?What other options are there?What is a realistic price and what would the conditions be?Which actions does this require and when?

6Sell, optimise first,or acquire?

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Strong focus on context, in-depth expertise In recent years, Kruger Corporate Finance has silently acquired a prominent place in the M&A landscape thanks to its specific expertise, including:

Financing and refinancing of companies in the event of changing business conditions, or to take advantage of future opportunities such as mergers, investments and acquisitions.Value optimisation for the benefit of stakeholders/financiers. Maximising returns and solving any issues that do not serve the business with regard to the sales process.Company valuations and determining realistic takeover prices, also as part of a pre-due diligence analysis or company analysis.Establishing a suitable, clear transaction strategy and procedure, taking into account the interests of stakeholders, legal and fiscal aspects and specific delivery formalities.Search and realisation of platform investments and add-ons.Sale of underperforming companies or parts thereof and/or transactions with complicated organisational structures, deal structures or situations.

Our efficient, transparent approach, based on close cooperation with stakeholders and use of our extensive network, focuses on value optimisation by providing support, unburdening clients and contributing specialist expertise.

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Why Kruger?

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What you can expect from Kruger:Kruger stands for 100% independent advisory and does not invest.More than 30 years of experience in providing high-impact support to medium-sized companies, helping them create value (again) in complex situations.Proven track record, largest consultancy agency in the Dutch restructuring mid-market.Expert team consisting of approx. 25 professionals; sufficient capacity for timely, objective, practical, no-nonsense advice.Keywords: corporate interest, objective, professional, confidential, committed, pragmatic, ‘about & with people’.Continuous communication, especially in the face of rapid developments.Direct access to an extensive network of external specialists, including accountants, lawyers, notaries, tax specialists and real estate experts, for major & minor questions.Kruger Corporate Finance offers support with mergers & acquisitions, financing & refinancing, valuations, etc.Kruger Interim Management has a select group of interim managers at its disposal who have been strictly chosen for their implementation skills & expertise.Kruger Executive Search provides a tailor-made solution for recruiting and selecting board members, managers and finance professionals.

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Why Kruger?

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How Kruger works:One of our partners is always closely involved in the process, bearing final responsibility. Our professionals bring decades of experience and the skills required to keep an eye on the bigger picture in crisis situations making the right economic decisions, without losing sight of the psychological and emotional factors that may be involved.Our analysis stands out from the crowd thanks to our thorough financial analysis. We present operating budgets along with liquidity and balance sheet forecasts, providing a full picture. These forecasts are a key component of our reports.If the available management information does not provide enough insight, we work together to provide real insight. For example: contribution margin per customer, cost price per product, better allocation of indirect costs. These cross-sections create new insights for future policy.Kruger always takes into account several scenarios, providing a quantitative explanation for all possible choices (invest, reorganise, cut costs, etc.).All our reports are practical and contain specific recommendations. You can count on us to be down to earth and to provide a thorough explanation in person.Quality is of paramount importance. For example, 11 of our professionals are EACTP-certified. The European Association of Certified Turnaround Professionals only accepts members who have demonstrated more than sufficient knowledge of and hands-on experience in turnaround situations.

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Kruger has worked for

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CustomersKruger clients per sector

Kruger clients scaled per category

Wholesale 19%

Energy 1%

Business services 11%

Metal/ mechanical engineering 5%

Transport/ Logistics 6%

Retail 8%

Hotel, Catering &Leisure 6%

Automotive 2%Graphic 2%

Food (production) 2%

Healthcare 5%Non-profit 2%

Real Estate 1%

Agri 4%

ICT 3%

Industry 10%

Construction(related) 13%

< € 20 mln 67,3%

> € 300 mln 3%

€ 100 - € 300 mln 4,7%

€ 50 - € 100 mln 7%

€ 20 - € 50 mln 18%

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Interim Management and Executive SearchAssignment by position in 2018

Share of restructuring clients / assignments2011 / 2018 - approx. 950 clients

interim management

man

agem

ent

posi

tions

finan

cepr

ofes

sion

als

executive search

40%

60%

60%

40%

2018

restructuring

corporate financestrategy formingbusiness model optimisation managementmanagement informationorganisational structurereturn on assetsfinancing

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Corporate FinanceDistribution of assignments by activity and business situation in 2018

regularcomplex/distressedtotal

77

24

14

12

9

7

6

5

46

31

12

12

7

12

8

2

3

2

3

3

5

1

7

30

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+31 (0)10 21 21 922+31 (0)10 21 22 409office@kruger.eu kruger.eu

Postbus 86773009 AR RotterdamSteupelstraat 503065 JE Rotterdam

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