METABO

50 percent increase in operating income

goetzpartners assists Metabo with systematic value-enhancement program

Increased revenue and a higher operating income: This was the goal for Metabo, a manufacturer of power tools, after its acquisition in 2012 by the investor Chequers Capital. Metabo brought advisory firm goetzpartners on board to set up a value-enhancement program and accompany its implementation.

Overseeing 24 value-enhancement initiatives

In this process, goetzpartners played a key role as an intermediary between Metabo’s management board, the investor and the workforce. In addition, goetzpartners assisted with the supervision of 24 initiatives for rigorous implementation of the growth strategy. In the case of crucial initiatives related to complexity management and productivity analysis, goetzpartners was also involved at the operational level.

More profitable product portfolio

In this context, goetzpartners examined the product portfolio’s cost recovery and margins and analyzed the effects that removing individual products from the portfolio would have. As a result, Metabo’s product portfolio saw a significant increase in profitability. To ensure that these effects last, goetzpartners established a portfolio management mechanism.

Success in growing profitability

In spite of declining prices and adverse currency effects, by 2015 Metabo was able to increase its operating income by 50 percent. Chequers Capital sold Metabo in late 2015 to the Hitachi Koki Group, realizing a substantial appreciation in value.
 

SECTOR

  • Industrials

CHALLENGES FOR CLIENTS

  • Rigorous implementation of growth strategy
  • Complex product range for professional users
  • Declining prices and adverse currency effects

GOETZPARTNERS APPROACH

  • Comprehensive strategic value-enhancement program
  • Operationalizing and overseeing 24 initiatives in project management office
  • Analyses of fixed costs and product portfolio as key levers

RESULTS

  • Clearer and more profitable product portfolio
  • 50 percent increase in operating income with revenue of 408 million euros in 2015
  • Successful sale at substantially higher value

 

CLIENT CASES OVERVIEW