IMAP SEE advises on Corporate and Financial Restructuring of MIMS Group

Client Background & Objective

MIMS Group is Bosnia and Herzegovina’s largest diversified food and beverage conglomerate, employing close to 5,000 employees. IMAP SEE has been working with the management of the MIMS Group since 2009 and was asked to restructure the Group’s debt, spin-off non-core companies and introduce more efficient financial and operational management.

IMAP Advantage & Approach

Prior to the sales transaction, Klas Group’s operations were suffering due to the company’s high debt. IMAP worked closely with the management and company owners to establish a strategy for maintaining sustainable operations, while at the same time recognizing the company would almost certainly need a strategic partner to ensure long term survival.

One of the tools developed by the IMAP team was a financial reporting and budgeting platform, which was easy to use and update, enabling easy testing of how different scenarios and assumptions would 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 several loans and were also provided with additional financing for working capital.

Outcome & Impact

The collaboration between IMAP and MIMS Group has resulted in the divestiture of three operations and capital raising in an additional three. The latest and largest of which, being  the sale of a 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.

Today, Klas Group is regaining its position in the market and is experiencing growth and stability as a part of AS Group.

Testimonial

Mujo Selimović, CEO of MIMS Group said: "In my line of work, I've come across many consultants. One of the key issues that I've had with advisors is that these people can walk away from a problem at any time, while the owner is left, holding the baby. Ever since I started working with IMAP, I discovered a company with a very different ethos. Highly trained, committed, driven by delivery of results and willing to put in the extra effort that is so necessary to make a real difference on the ground.

IMAP has helped me divest in two operations, raise capital in another three companies and provided me with the rigorous structures and network of some of the best managers in the region to strengthen my operations at the Group level. I honestly believe that IMAP is offering the kind of advice and drive that should be considered by every entrepreneur in the region. The energy and skills they have are impossible find in any company. That is why I truly believe that the contribution they are making to the economies of the region are substantial."

Contact

Jurgis Oniunas
jurgis.oniunas@imap.com
+385 14921429