About Us:  Case Studies

Case Studies

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Troubled Company Assistance

I hired the wrong replacement after my long time General Manager retired.

Type of Business:

• Sub $10 million in sales Service Company in the Tourism  sector which had been in existence for decades

• Long time  and successful General Manager had recently  retired.

Problem:

• A New General Manager recently hired with experience and success as a VP of Marketing for two Fortune 500 companies, but no previous Profit Center responsibility.

• Within one year of hire, the Service Company had booked a loss greater than the earnings for the prior five years.

• Company was now plagued with additional overhead, was slow to respond to the market and was losing it's entrepreneurial spirit.

Our Solution:

• Redefine the vision and strategic focus of the Company back to it's core value proposition.

• Plot a Turnaround Plan with defined milestones, dates and responsible parties.

• Present  Plan to creditors and negotiate and obtain Turnaround financing.

• Pull in and rally the key employees that understood the new strategic vision and assign responsibilities and specific deliverables.

• Recruit an integrate a new qualified General Manager aligned with the new strategic vision.

• Implement an improved business planning systems with operating metrics and monthly performance reporting.

Results:

• Within 18 months the Company was restored to profitability.

• Improved oversight and control to prevent a reoccurrence of a similar problem.

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I am too small to hire strong management and my family is tired of sinking money into a Black Hole

Type of Business:

• A Sub $5.0 million in sales Specialty Manufacturer in the Commercial Promotion business.

Problem:

• The Company had been running at a loss for several years funded primarily equity and credit cards of related parties, a local bank and vendors.  The related party equity and debt sources no longer wished to fund the business.  The Company was insolvent however had a great reputation in the business and was well liked by it's customers.

Our Solution:

• Orchestrated an Assignment for the Benefits of Creditors initiating a "Friendly Foreclosure" shedding all of the unsecured debt.

• a NewCo was established with related party shareholders and all significant Assets transferred legally to the new entity.

• Operations continued in the same location and with the same name and trademarks, with minimal disruption.

• Strategic and operational assistance were provided to improve operating efficiencies.

Results:

• The Company now operates profitably as an affiliate of a larger manufacturer in the same business.

• Old Co name and business goodwill maintained.

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Financial Growth Controls \ Preparation for Sale

My Company is growing too fast for me and is coming apart at the seams.  I need cash, management help, and systems now!

Type of Business:

• A privately held Consumer Products company with Explosive Sales that had doubled each year for the previous four years and was projected to exceed $50 million that year.

Problem:

• The Company was running short of cash for working capital and had no external sources available.

• An Accounting system conversion was not fully completed and the financial statements were in disarray.

• Order Entry systems were failing and Inventory Control and Product Costing System were non-existent.

• Shipment were late to customers.

• The Company had several non-compliance issues pending with significant legal and financial ramifications pending.

Our Solution:

• Immediately generate short term cash through improved working capital management and bridge financing.

• Plot a Turnaround Plan with defined milestones, dates and responsible parties.

• Clear up non-compliance issues, get critical financial controls in place and financial statements current to obtain additional  funding.

• Negotiate and obtain outside financing.

• Recruit and integrate New Management in key areas.

• Implement a business planning systems with operating metrics and monthly performance reporting.

Results:

• Within 24 months the Company had Audited Financial Statements, new Financing, Non Compliance issues settled, improved operating and financial controls, a new distribution warehouse and a Professional Management team operating to an agreed upon Business Plan.

• The Company was sold as a all cash deal, representing a substantial gain to Selling Shareholders.  Primary Shareholder was able to comfortably retire versus facing Bankruptcy prior to our involvement.

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My business continues to grow but my Financial Controls are not keeping pace.  I currently have Family and Friends running this area of the business.  What do I do?

Type of Business:

• A less than ten year old, greater than $100  million dollar Industrial Manufacturer and Repair Services provider experiencing explosive sales.

Problem:

• The Company was five months behind in its Financial Reporting to its principal lenders.

• The Company was in default with its Bank Covenants and was in dire need of growth and working capital.

• No Operating Metrics or Financial Performance reporting existed.

• Excessive overtime and temporary overflow staffing existed in several departments.

• Family members and friends occupied key management positions that had outgrown their training and core strengths.

Our Solution:

• Set milestones and plan to implement new Financial Controls and month end  Financial Close Procedures.

• Designed new Operating Management Reports with key Performance Metrics.

• Developed Annual Operating Plan with defined Operating and Financial Goals and Objectives. 

• Developed new Human Resources plan with defined job responsibilities, training required and Management voids.

• Recruited critical Management talent not existent in the Company.

• Results oriented incentives systems were developed.

• Refinanced the Company's existing Lines of Credit, lower their cost of debt and improve the capitalization structure to better accommodate their business needs.

Results:

• Within  months, Monthly Financial Closes were down to within 10 working days from previously being months behind.

• Financial Administration staff was reduced by over one third with no overtime.

• Interest costs on debt was reduced by over 30% by lower renegotiated rates and improved working capital management systems.

• The Company more than doubled it sales and was sold to a Private Equity Group for more than 60% of a previous offer.

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My Industry is Consolidating.  If I don't do something quick,  I will lose this business. 

Type of Business:

• A local Southern California Food Broker was doing less that $15 million in sales was struggling with rapid changes in their marketplace. 

Problem:

• Both Customers and Competitors were consolidating rapidly in search of efficiencies needed in the supply chain.

• The Company had limited access to Capital due to its small size.

• The Industry was highly fragmented with similar sized suppliers making it difficult to initiate a conventional "Roll Up" consolidation play.

Our Solution:

• Develop a unique "Partnership Roll Up" model that allowed the Company to align itself with similar sized companies with a pre defined goal of formal Consolidation later.

• Strategies for Back Office synergies were developed an executed generating immediate synergies in Accounting, Information Systems, HR Management, Purchasing and Operations.

• Continuous Improvement and Benchmarking systems were implemented to insure Best Practices for the growing entity.

• Partner Companies were formally merged into a Consolidated Company

Result:

• The Consolidated Company's revenues grew to over 40 times the original Company's.

• Members of the Group ultimately received over $400m in liquidity representing a 9x multiple of Consolidated EBITDA.

• versus a potential alternative prior to our involvement.

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  Other Examples of Financings, Fraud Investigations, Interim Mgt, ect. upon request.

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