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Case 1: Reduction of overheads expenses

A foreign company specialised in tableware art contacted us to reduce the chronic deficits of its French subsidiary. The annual cost of managing the entity was excessive compared with the revenues generated, i.e. €uros 1,650,000.

We identified the following disproportionate expenses during our accountancy review:

  • Office rental (surface area 110 m²)
  • Salaries and social security contributions (1 Sales Director, 1 Head of Sales, 5 employees)
  • Travel and representation expenses
  • Logistics (goods storage and delivery)
  • Office and telecommunications expenses
  • 80 000 EUR
  • 420 000 EUR
  • 150 000 EUR
  • 150 000 EUR
  • 40 000 EUR

With a rapid inspection of the financial position, we suggested to the company first to reduce its stock of goods stored in France in line with the turnover generated, then to outsource to us the administrative management of its subsidiary through a contract renewable every year and keep only a head of sales and a sales secretary in-house.

After a number of meetings, this solution was adopted. Based on a joint agreement, we restructured the subsidiary and reduced its overheads by about €uros 450,000, i.e. more than 40%, with equal revenues. The parent company benefited from the expertise of a competent partner and met the budget forecast for its subsidiary.