• Incurred huge operating losses due to machine cost overruns
• At serious risk of running out of cash and ceasing to operate
• Current Bank demanded to be paid off
• Personal issues made owner want to sell out

Solution:

• Developed proper focus and controls over sales and estimating efforts
• Improved cooperation/communication between manufacturing, engineering and the other departments
• Above returned business to profitability
• Implemented a week by week cash flow forecasting system
• Identified an alternate source of Bank financing
• Successfully sold the business to the existing management team

Case Study #2: General Contractor
Problem:

• This contractor overextended itself and lost control of several large projects, resulting in huge losses and contingent liabilities
• Bank lost confidence in the existing management and financial reporting

Solution:

• Quickly analyzed the troubled projects to objectively determine the facts
• Prepared accurate financial reports
• Developed a strategy for controlling and minimizing the contingent liabilities
• Improved communication with the Bank and restored their confidence in the underlying business.

Case Study #3: Multi-National Manufacturer
Problem:

• Failed effort to merge business into another entity had drained cash and distracted management
• Combined with a weak international economy, this led to huge losses
• Despite attempting several internally directed "turnarounds", the situation continued to deteriorate
• Bank lost confidence in the company's financial projections and reporting, leading to a demand for personal guarantees

Solution:

• Developed a more complete and accurate budgeting process
• Implemented a week by week cash flow forecasting system
• Intelligently reduced costs to reestablish profitability
• Replaced the existing CFO with a more qualified successor
• Improved communication with the existing Bank
• Obtained a long term loan extension without personal guarantees