manufacturing

All case studies are about actual clients but are not related to quotations or videos

Issue

The company was losing money, had little cash and had no focus for the future. In addition, they had just moved into a new building and wanted to expand. The owner was in love with the second building and wanted to spend money on fixing it up. His management team was a mess with incompetence and dishonesty. The owner was in denial. He had one client who represented more than 30% of his business and who was loyal to his salesperson, not to the company. The company did not have good financial processes to show where they were losing money. The owner was the best at making machines but went into other markets with too much competition and did not have the team to compete.

Solution

We were able to replace the existing controller and get accurate financial information to ascertain which areas of the business were profitable and in which areas they were losing money. In addition, we got the owner and his wife to admit that they needed to change. We were also able to get the owner to sell the new building and shrink the company.

We assisted them in forming an advisory team with one member being the CEO of a bank. The advisory team guided the owner and was able to get the current financial institution to provide time to get the company’s financing in order. In addition, we were able to find an investor to put substantial funds into the company.

Results

The leaner company became profitable. The owner and his wife were able to get value from the original manufacturing line and rent from their old building so they could retire comfortably. He invested the funds from the sale of the building to be debt free. In addition, he refinanced the existing debt with better termsand which saved thousands of dollars. We also helped recapture over $150,000 from embezzlement by the controller who had not paid insurance premiums for three years.