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  • Per-Olov Lindgren

Turnaround IT companies

The company with about 200 employees had for a long time struggled with negative results. The company and 2 corresponding companies in Norway and Denmark were divested in an MBO and Per-Olov was appointed vice president of the Swedish operations, under the CEO, to reverse the negative result.

An overall strategy was developed by Per-Olov and the President and CEO. The strategy was implemented in a tactical plan that for about 12–18 months would improve the result from loss to lasting profitability.

In the Turnaround project, the following results-improving activities were carried out.

Unprofitable consulting operations that did not correspond to the company's strategy were divested. With an immediate positive effect on results.

A profitable non-strategic business that had no synergies in either the customer or the product area was sold to a good dcf valuation.

A business unit was wound up with staff, premises and other administrative costs. The business unit's development and maintenance of IPR, as well as customer contact, were transferred to another business unit. Delivery and sales were reorganized so that revenue was maintained, customers received better service while costs were more than halved.

An unprofitable external company was acquired and restructured to be included in our company's deliveries. The acquired company's staff were very competent but the costs were unjustifiably about 100% too high in existing customer contracts. 50% of the acquired staff were trained in an IT system with a lack of delivery resources. For existing customer contracts that the acquired company had been appointed Business managers with the task of further developing the business together with the customers. The result was full occupancy of the people who switched to new customer contracts as well as strong growth in existing customers. All in all, a large profit contribution was created for our company.

After 18 months, the company had a stable and lasting profitability.

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