MARKET EXIT

How DAAX was successfully liquidated with Consultinghouse


The client

DAAX GmbH specialised in the supply of services to the medical industry and health-care professionals. The Company, with Headquarters in the UK, was primarily active in the area of Oncology, as sole distributor of Faxitron Bioptics digital specimen radiography (DSR) and of Galil Medical Cryotherapy systems and accessories in the UK & Republic of Ireland.

With the merger of Faxitron and Bioptics the product portfolio now extends to research facilities. Daax are able to provide service and maintenance contracts for all equipment purchased. The Headquarter started its operations in 2016 and grew rapidly to one of the market leaders in the SME sector. Ther German subsidiary was founded in 2018 and situated in Frankfurt. The German company was specializing in Faxitron Medical Devices, Digital Specimen Radiography, Breast Cancer, Breast Oncology, Medical Devices, Cryotherapy und Galil Medical. The company had a revenue of +1Mio. Euro.

Business challenge

Daax started their operations in Germany 2016. The company has been watching the market for 2 years. After steadily increasing sales and customers, in 2018 they decided to expand their operations with an own subsidiary. In order to further expand their business in Germany and offer their customers even better service a GmbH was incorporated and local employees hired.

After just over 1,5 years, of successful and profitable operation in Germany, the mother company in England, DAAX UK Ltd. was bought by another company.  Therefore, the existing branch of Daax needed to be wrapped up and consolidated with the UK business.  

Even done the company was sold, the GmbH needed to be de-registered in Germany. The closing of a company with limited liability (GmbH) is equally important as its formation.  Companies need to comply with the German statutory law to exit the German market accurately. It is linked to a number of special formalities, and compliances. At the end of a closing procedure, the removal of the company out of the trade register has to be done.

Solution

Before Daax GmbH prepared their market exit from their German operation under the Daax GmbH brand, the company has consulted the management advisory team of Consultinghouse to provide guidance and information regarding the most efficient consolidation and wrap up strategy. Especially in questions regarding debt and creditor, shareholders and pertinent filings and documentation required by local, state and federal agencies, the advisory team of Consultinghouse could provide important information and specific answers. Choosing the best strategy means knowing the array of available exit options and evaluating them against business priorities.

When thinking about market exit, companies need to select the best strategy to generate value for its remaining business activities. In a pre-evaluation we have discussed all possibilities with the client attorney before making any decision. This guaranteed DAAX full transparency on the process and the realization measures taken by the management team of Consultinghouse

We could ensure DAAX a secure and riskless process during the whole market exit. Within this market exit framework, we attempt to keep the services as flexible and customer specific as possible.

Outcome

The claim of the professional advice of Consultinghouse resulted in a fast and uncomplicated company wrap up. Thereby further risks along the insolvency proceedings could be eliminated. The great advantage by claiming the service of Consultinghouse, was a quick market exit, so that further expenses and resources could be saved and invested in other strategic projects of the company.

In addition, in taking advantage of the market exit framework of Consultinghouse, a straightforward procedure was given, so the company did not need to take care of the market exit process and was able to focus on his core business and future targets.

This enabled the existing business to be relocated and continued through the new company. The newly founded company was also founded and set up by the Consultinghouse team.

To learn more about Consultinghouse and how we can add value to your business and company please contact us at info@consultinghouse.eu or Telephone +49 6181 250 334

Let us be a part of your success story

Andreas Wilke

Owner

+49 6181 250 330

 

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Why us?
  • Strong experience in supporting foreign companies to develop their business in Germany
  • Our clients success is our success. Our objective is to grow along our clients
  • We are family owned. Our long- term perspective allows for good strategy and decision-making

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