Description

  1. 1An initiator of closed property funds is wallowing in chaos... What can we do?

Comes Real received an “emergency call” from a German insurance company. The firm had a stake in a fund initiator where things were going from bad to worse: both managing directors had been arrested, 80 employees had no one to turn to and the registered offices had been sealed by the Public Prosecutor. Thousands of investors were worried and together with the general public demanded that the cards be put on the table.

In this situation, Comes Real came on to the scene with two interim managers and one consultant. The first task was to take over the management of the company and to put the minds of all those concerned – employees, investors, banks and the public – at ease in order to create the basis for a careful appraisal of what had gone wrong. This analysis brought the following to light: the previous management had kept essential knowledge to itself, its employees had not been kept informed and operations were therefore inefficient. It turned out that the closed funds had been noticeably and negatively influenced by the former directors and some of them were even in economic distress. There was little chance of new business with such a lack of confidence.

To solve these problems, we began to restructure the company and the funds issued. Our preoccupations were:

  • to stabilise the investment companies
  • to restructure the organisation of the company and its operations
  • to develop exit strategies for the employees, partly placed funds and inventory. We could support the company with our numerous contacts as an insider in the business: thus, necessary partners were found as quickly as were suitable candidates as permanent managing directors for the company. Potential tenants and purchasers of the properties were recruited and parties quietly secured that were interested in taking over the separate service firms.

The result

Our “first aid” was as successful as was the subsequent reconstruction: impending bankruptcy had been averted, confidence had been won back, the structure and quality of all key processes had been improved and the performance of the properties had been significantly raised, thus enabling the company to be sold.