Termination of a 2-year conflict in a manufacturing company
Two partners had not spoken to each other since 2022. The company was losing 14% margin annually due to lack of decisions. We established a new division of shares.
Two years of silence between the owners almost led Stal-Bud Sp. z o.o. to bankruptcy. Lack of agreement blocked key investments in the machinery park and bonus payments for 83 employees. We entered the company when the loss of margin began to threaten the financial liquidity of the entire plant.
The challenge
Since March 2022, the partners had contacted each other exclusively through assistants or lawyers. This situation cost the company about 14.2% margin per year, because no one signed contracts with new steel suppliers at lower market prices. 318 tons of unsold structures sat in the warehouse because the owners could not agree on a common discount strategy.
The atmosphere at the plant became unbearable. In the last 6 months, 7 experienced welders quit, which extended the order fulfillment time by 19 days. Machines required service for 86,000 PLN, but the transfer hung in the system for 4 months, waiting for a second authorization that no one wanted to grant out of pure spite.
Our approach
We used our standard protocol: four mediation sessions without the participation of third parties. The first two meetings took place separately with each of the partners to understand real financial needs, not just personal grievances. We had to break through the layer of emotions to the hard data from the Excel spreadsheet.
Instead of looking for the guilty, we focused on the valuation of shares and new management board regulations. Our team (3 people) prepared a simulation of the costs of further dispute, which showed the owners that in the next 12 months each of them would lose 240,000 PLN of private assets. This was the turning point. Discretion was our standard, so the talks took place in a neutral place, away from company employees.
The solution
We developed a new capital structure, which the notary approved on December 18, 2023. One of the partners decided to take the role of a passive investor with a 23% share, giving full operational power to the second partner. In return, he received a guaranteed dividend payment at a fixed level for the next 3 years.
Additionally, we implemented a simple communication protocol for the board. Operational expenses up to the amount of 12,500 PLN can now be approved single-handedly, which immediately unblocked material purchases and machine service. We also changed the bonus system for the crew, which stopped employee turnover in the first quarter of 2024.
Results
Thanks to mediation, the company regained decision-making power in less than 90 days. The plant returned to full capacity, and the margin increased thanks to the renegotiation of steel supply contracts that no one wanted to sign before. We save transactions on the edge and this case was the best proof of it.
Timeline
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October 12, 2023First contact and analysis of Stal-Bud's financial documentation.
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October 29, 2023Individual sessions with each of the partners (90 minutes each).
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November 15, 2023First joint confrontation at the mediation table.
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December 18, 2023Signing of the settlement and new division of shares at the notary.
"For two years, no lawyer could get us to agree. Arka Przymierza came and we talked specifically about numbers. Without unnecessary filler, we set rules that finally allow me to work and sleep normally."