The board, management, and auditors of $100M holding company, consisting of five operating entities and 18 retail / wholesale locations, believed the company to be marginally unprofitable with appropriate solutions in place. After thoroughly analyzing the balance sheet, operating results and business plans it was clear this company was in severe trouble.

Process

• Determined Viable Core Businesses
• Completed Complete Analysis of Balance Sheet, Operations, markets, Cash Flow, Management
• Created interactive planning model
• Analyzed financial reporting systems

Execution

• Recapitalization
• Revamped balance sheet components
• Empowered management of five operating entities
• Created/installed real time reporting system

Results

• Turned around two entities
• Reduced costs 15%
• Increased Gross Profit 11%
• Optimized staffing
• Reduced head count 10%
• Increased productivity
• Raised $20 million of debt
• Raised $4 million of equity
• Divested company as part of positive financial solution