Situation
Private equity fund, dissatisfied with two years of losses, fired the CEO of the $6 million technology company he founded 10 years earlier. Sales had declined 50%, the bank loan was in default, past-due obligations to suppliers exceeded $1.3 million. Employee morale was very low.
Approach
As interim CEO, worked with the management team to develop a “get-well” plan for the company detailing cost savings, improved selling effectiveness through coaching and revised incentive plans. Improved employee morale through engagement and training in the area of selling effectiveness and improving relationship with the company’s board. Stabilized the supplier base through personal meetings and relationship building, sharing with them the strategy going forward and negotiating revised payment plans for past-due. Negotiated revised terms with the bank. Conducted intensive industry networking to identify a new equity investor.
Results
Within three months achieved lower break-even revenue level and turned positive EBIDTA for the second half of that year. Succeeded in consummating $2.3 million new equity investment for the company to support forward growth strategies.
Situation
Privately held $30 million contract manufacturer’s owner filed Chapter 11. Unprofitable, cash reserves depleted. Sales falling, rapid loss of customers, COD terms with suppliers, employee turnover high.
Approach
Engaged by Owner as interim President with full operating responsibility, shared financial decision-making. Downsized team and worked with them to cut costs and pared non-critical activities, strengthened customer and supplier relationships and improved communication with bank.
Results
Within four months, lowered break-even sales level to $12 million, retained three largest customers and 75% of others, re-gained terms with suppliers. Arranged for sale of company to another local manufacturer. Owner avoided extended cash outflow and eliminated personal debt; 80 jobs were retained in the community.
Situation
$5 million metal-fabrication company, a family-run business for more than 80 years, now incurring losses and falling behind in economic competitiveness. Poorly positioned for growth but with opportunities in its niche market.
Approach
Retained by Family Board as part-time CEO. Outdated business practices required fresh approaches and wholesale culture change, without losing valued people. Reorganized roles & responsibilities, eliminated unproductive people & practices. Established new direct-sales effort to diversify customer base. Secured municipal financing to upgrade facility and equipment. Implemented new computer system to improve build planning, quoting and inventory control.
Results
Within six months business returned to stable profitability. New customers were captured, plant was significantly modernized; employees gained new confidence in their abilities as a team. Board extended interim CEO engagement.
Situation
$16 million publicly held manufacturer of advanced electrical power sources was not growing and incurred continuing losses. R&D spending was substantial, yet new product introductions had been delayed for more than two years. Workforce appeared unmotivated and disorganized. Value of company shares had fallen from $12/sh to $5/sh during past 12 months.
Approach
Hired as Chief Operating Officer, implemented quality circles and improved communication with shop floor personnel to identify and resolve problems. Established initial manufacturing planning systems, hired new managers in most key functions, including a CTO, evolved culture toward employee collaboration and customer service. Worked closely with company’s Board to improve the governance process.
Results
Within two years sales were increased to $32 million, share value grew from $5 to $16/share. Within five years company sales approached $100 million and business was consistently profitable.
Situation
$3 million high-tech manufacturer of laser imaging subsystems for the printing/publishing and cinema markets, still run by its technical founder, was unprofitable. 80% of sales dependent on one customer, who was curtailing orders. Existing investor base unwilling to provide funding needed for turnaround. Bank preparing to call its $500K loan. Business lacked a strategic plan.
Approach
Hired by the Board as CEO, also made a personal investment in the company. Business suffered from a business and economic model out-of-sync with market needs and cost realities. Worked with founder to focus efforts on new product development and cost reductions. Revised business model, developed new strategic plan, secured bank line-of-credit without personal guarantees.
Results
Within 18 months company returned to profitability, new customers were won including a large contract with a Fortune 500 company. Product offering was successfully transitioned into custom integrated systems, versus standard components. Five years later company was acquired, giving all 120 investors liquidity.
