X Inc. – Restructuring of the Turkey Operation
X Inc., operating as the master franchisee in Turkey for a U.S.-based global leader in its field, had reported consecutive losses for five years since its inception, despite significant investments. The shareholders expressed their desire to exit the sector with a strategy that would at least partially recover the incurred losses.
Actions Taken:
- The company’s management was taken over to establish operational control, and the identified issues were systematically addressed and resolved one by one.
- Although the company had not yet reached profitability at the time, monthly losses were reduced by approximately 20%.
- Supported by numerous initiatives—including creative, industry-first ideas—and an improved brand perception, the company began to position itself as a key player in the sector.
- The number of active offices was increased from 29 to 44, and operational infrastructure gaps were addressed.
- Brand awareness and popularity were significantly enhanced, and eventually, an investor was secured. The company was sold at a valuation exceeding the expectations of its shareholders.
Duration : 1,5 Years
X Group – Corporate Restructuring
It is the Turkish representative of a French-origin automotive maintenance and repair company established to compete with authorized dealers and offer alternative solutions in the automotive service and maintenance sector. In addition to its core business, it has added tire import and representation as well as representation of a global brand in vehicle maintenance and inspection services.
In my opinion, the group had a sound business model but was struggling to generate profit due to management weaknesses.
- This company underwent restructuring twice. During the first restructuring, a reporting system was established to identify the group's deficiencies. The findings were analyzed, leading to significant decisions that were implemented. As a result of this initial restructuring, the company reached its breakeven point and management was handed over to professional executives.
- Less than a year later, at the request of the company owners, new discussions took place. Despite significant growth, it was identified that the companies were facing serious issues in cash flow and profitability.
- Financial control and profitability reporting systems were re-established. It was observed that the team assigned to lead the companies’ expansion made radical decisions quickly to achieve performance.
- This team extended credit to many dealers beyond their capacity, with a significant portion of these credits being difficult to recover.
- While the company believed it was growing through increased dealer numbers and sales turnover, it was actually experiencing hollow growth primarily due to increased receivables. It became clear that the professional management team was making decisions prioritizing personal interests. This was confirmed through dealer visits and reported to the company owners.
S+ Group – Financial Policy Changes and Efficiency Improvement
This group, known in Istanbul as the third-generation owner of a prominent business center and the founder and developer of the largest X chain in Turkey, is also recognized for their ventures in resort hotel investments and entertainment centers across various parts of the country.
Despite its abundance, a large real estate portfolio, and rental income, it was facing financial difficulties due to flawed financial policies.
- A financial control system was established for this group, all loans were restructured, and income and profitability measurements were conducted to optimize their revenues.
- The group's nationwide entertainment machine park was first measured and then optimized, resulting in a 20% increase in profitability.
Duration : 1 Years
X28 Tr – Corporate Restructuring
The management of this company, which had significant brand strength but was deteriorating day by day due to managerial weaknesses, was taken over.
- Through PR activities and SEO improvements to boost organic searches, significant advertising awareness was achieved within one year by securing seven television appearances, participating in trade fairs, and generating hundreds of news articles based on measurements at that time.
- As a first in the industry, technology, social media, and digital photography courses were organized for independent consultants within the company, and certificates were awarded.
- The industry's first and, at the time, only special magazine was published.
- In this way, 21 new dealerships were sold, increasing the number of dealers from 66 to 87.
- An IT, web, and email system was established to integrate all dealers into a centralized system, preventing inefficient investments by dealers in this area and providing standardized services. As a result, the company gained an additional annual revenue of 500,000 USD from a technology package renewed every year.
- After one year, the company’s monthly revenue increased by 84%, resulting in a 40% increase in profitability. The monetary value of this improvement amounts to 1.5 million USD.
Duration : 1,5 Years
X Manufacturing Industry and Trade Inc. – Efficiency and Profitability Improvement
Although this company—one of the country’s leading heavy industry firms with products that consistently sell out—had no particular complaints or issues, the following initiatives were implemented to improve efficiency, resulting in increased profitability.
- A new production planning system based on production parameters, inventory levels, and sales forecasts was established. As a result, manufacturing was optimized across all quantities and product types to align with raw material procurement capabilities.
- All procurement items began to be tracked individually through a new system, enabling the resolution of all delayed, unprocessed, or pending requests and significantly accelerating the purchasing process.
- Ongoing negotiations and price discussions were conducted for key procurement items, and alternative suppliers were sought, resulting in significant cost reductions. Numerous intense price negotiation meetings were held, and suppliers were presented with alternatives to encourage price cuts. As a result, unit manufacturing costs were reduced by 16% within a year.
- Finished goods warehouses were reorganized, and the First-In-First-Out (FIFO) method was adopted for shipments. This ensured that older products, which had been produced years ago but were stored in the back, were dispatched first—preventing newer items from being shipped while older stock remained unused.
- An aging report system was implemented in the finished goods warehouse, enabling the sale of products that had remained unutilized for years. As a result, the average age of inventory in the warehouse was reduced from 121 days to 64 days within a year.
- The manual form-based tracking system, which caused significant time loss, was replaced. This change resulted in a 66% time saving in warehouse operations.
- A new tracking system was implemented, leading to a 22% reduction in raw material inventory levels.
- The internationally essential reporting system—structured hierarchically from simple to detailed, delivered on time, and comparable across periods—was extensively overhauled. As a result, it has become systematic, accurate, and consistently prepared by the 15th of each month.
- With these measures, the company’s monthly net profit increased from 1 million USD to 1.2 million USD.
Duration : 1 Year
X Industry and Trade Inc. – Corporate Restructuring
This multinational company, one of the world's leading manufacturers, failed to achieve success in the country and reported losses for several consecutive years due to the unique dynamics of its sector and a series of poor management decisions.
An agreement was made with the company's international headquarters stating that the company should either be brought to profitability or, if that is not possible, be shut down.
- Without compromising on quality, production costs were reduced by 13% through the use of alternative materials and the reduction of waste.
- As a priority, since it was necessary to identify loss-making sales, a cost control system was established in which costs are continuously updated and monitored in real time by the sales team.
- A new sales team was formed, and by entering new markets, conducting intensive marketing and PR activities, and participating in trade fairs, sales were increased by 60%.
- The assembly team was strengthened, minimizing delays and errors in the installation processes.
- By implementing production and material planning, the delivery delay rate was reduced from 78% to 15%.
- By building trust with dealers and addressing their needs, an average of 1,300 products were sold monthly with a 12% average market share in year X, while in year X+1, monthly sales averaged 2,500 units with a 26% profit margin.
- A team that was unfocused, unable to work collaboratively, and demotivated was involved in management decisions, their needs and requests were considered, and through increased employee motivation, they were guided to focus on common goals.
- By implementing more optimal production management and engineering efforts, the weekly product output was increased by 20%, while production costs were simultaneously reduced by 13%.
- Instead of some high-cost items imported from abroad, alternative products were sourced from different suppliers.
- Competitor products were purchased and analyzed through reverse engineering, and the production methods were adapted accordingly. Some manufacturing techniques were modified to reduce waste.
- With these measures, the total gross profit from product sales increased from 3% to 17%.
With all these measures, the losses of this multinational company, which had closed the previous year with a 2.3 million USD loss, were eliminated, bringing it to the break-even point.
Duration : 1 Year
X Industry Inc. Multinational Company – Corporate Restructuring
Following the earthquake, the sector entered a crisis characterized by declining sales, idle production capacity, and consecutive losses. Due to a demotivated team unable to make radical decisions or implement rapid changes, management lost control of the company and events were left to unfold without intervention. No budget was allocated for branding and promotional activities, leading to sales being lost to competitors.
- As a member of the restructuring team, two separate restructuring and efficiency improvement projects were carried out, including the closure of a factory, resulting in the company turning profitable within three years.
- Some regional offices that were continuously operating at a loss and showed no signs of becoming profitable were closed, while others were transferred to their respective managers.
- General expenses were reduced through implemented measures, and the company headquarters was relocated to a more suitable location.
- The continuously loss-making factory was closed, and products were imported instead. This not only halted manufacturing-related losses but also eliminated inventory costs.
- The value of products in the warehouses was reduced from 1 million euros to 450 thousand euros.
- A corporate communication and marketing department was established, and by developing a more effective market strategy and reaching more customers, the number of proposals submitted increased by 37% to 60% compared to the previous year, depending on the subject matter.
- By establishing an accounts receivable management system and principles supported by software, the average collection period was reduced from 159 days to 14 days, and receivables were decreased from 3.5 million euros to 800,000 euros.
- By automating every possible task within the system, the number of personnel was reduced.
- An effective accounting, budgeting, and reporting system compliant with IFRS standards and based on foreign currency was established.
- As a result of these efforts, the international company was nominated for the first time in Turkey's history as the sole candidate in the annual global gold medal competition.
- As part of the management team, the company was taken over with a 3.5 million euro loss and, with many measures implemented, was brought to a profit of 980,000 euros after four years.
Duration : 3 Years
X Automotive Inc. – Profitability Improvement Project
- By redefining the order and distribution methods of Turkey’s leading Price/Renault spare parts distribution company at the time, warehouses were reduced by half, and the funds obtained were used to pay off high-interest bank loans.
- The company’s sales, distribution, and collection policies were reviewed, unprofitable operations were halted, and net profitability was increased by 20%.
X Hotel – Establishment of Reporting System
The management of this 251-room, five-star hotel located in the center of Istanbul was being conducted by the owners and local teams entirely outside of international standards.
- The hotel’s IT infrastructure was first strengthened and supported with various necessary software and an ERP system.
- The accounting infrastructure was rebuilt on this new system, ensuring compliance with international standards.
- The hotel's cost control and revenue management departments were aligned with the new standards.
- The hotel's budgeting infrastructure was established, and performance reporting was implemented using the AHMA (American Hotel & Motel Association) reporting system, which allows comparison against the budget.
Duration : 1,5 Years
X Group of Companies – Efficiency and Cost-Saving Measures, Diagnosis
The group, which did not experience cash flow problems and believed it was profitable, lacked accurate data analysis on operational results due to the absence of an effective reporting system. There was no clear information on where and how the funds, apparently profitable, were being used, and financial statement integrity could not be ensured.
- A consolidated accounting and reporting system was established.
- This reporting system revealed that the group was actually operating at a loss, but due to the use of project loans and the absence of cash flow problems, these losses had gone unnoticed.
- Personnel costs were reduced by 35% through tax planning.
- The losses of a company active in international markets, which had previously been overlooked and sidelined, were clearly reported, leading to the termination of the company's operations by the board of directors.
- In the import company with unprofitable sales, sales and collection principles were redefined, resulting in increased profitability.
- An annual savings of approximately 3 million USD was achieved across the entire group.
Duration : 1,5 Years
X Group of Companies – Establishment of Accounting and International Reporting System
This group, which has international partnerships in the US and Germany and includes a natural gas power plant among its investments, failed to keep up with a period of rapid growth. Due to cultural clashes between the company owners and foreign-based managers, funds and products from abroad were halted.
- Overseas relationships were reestablished through personal commitments and assurances given to foreign partners.
- The group's stalled accounting system was reactivated through implemented measures, and a foreign currency-based accounting infrastructure and reporting system were established to provide the type of reports required by international partners.
- Transparent reports were provided to international partners, essentially delivering reports similar to independent audit reports.
- As a result, previously halted funds and material supplies from abroad were released.
Duration : Less than a year