Corporate and Financial Restructuring of MIMS Group
Since 2009 ASCENDANT has been working with the management of the MIMS Group, Bosnia and Herzegovina’s largest diversified food and beverage conglomerate, employing close to 5,000 people, to restructure the Group’s debt, spin-off non-core companies and introduce more efficient financial and operational management.
This collaboration has thus far resulted in the divestiture of three operations and capital raising in an additional three.
The latest and largest transaction was the sale of majority stake in Klas Group d.d., the largest milling and bakery production in the country to AS Jelah Group, in the largest private transaction ever completed in Bosnia and Herzegovina.
Prior to the sales transaction, Klas Group’s operations were suffering due to the company’s high debt. ASCENDANT worked very closely with the management, as well as owners of the company, on establishing a strategy for maintaining sustainable operations, all the while aware of the fact that the company would almost certainly need a strategic partner in order to ensure long term survival.
One of the tools developed by the ASCENDANT team was a financial reporting and budgeting platform, which was easy to use and update, enabling easy testing of how different scenarios and assumptions affect the company’s overall performance. The key advantage provided by this tool was that it clearly differentiated between the cash flow effects of operations and financing activities. This was crucial for both the investors and the banks, as the key for a successful transaction was to establish that the company’s operations were strong enough to make the company sustainable in the long run, assuming a more favorable financing structure. Eventually, the new owners of Klas Group were given discounts on certain loans and were also provided with additional financing for working capital.
Today, Klas Group is regaining its position in the market and is experiencing growth and stability as a part of AS Group.