Sample Projects
Sales & Distribution Small-Business Restructuring and Growth:
Problem
A $4 million British sales, service and distribution company lost its largest supplier and top management was planning to form their own companies taking other suppliers with them. The previous managing director had lost control and interest. Corporate management did not recognize any of the disaster signs. Morale was low and customers were worried.
Approach
Took over as chairman, released the managing director, and restructured the organization and board. Formed an executive committee with three top executives that created a culture stressing teamwork throughout the organization. Negotiated a strategic partnership with the second largest supplier to build a new manufacturing plant in England. Began a diversification plan and strengthened the overall sales operations making numerous sales calls with management and sales personnel to all major customers.
Instituted a new program to act as the purchasing arm of the largest potential customer increasing the sales opportunities from less than 10% historically to 100% of that customer’s $2 to $3 million potential. Identified demand for complimentary product areas and negotiated distribution agreements with top suppliers of those products. Reorganized the repair and quality shop operations, achieving profitability within 6 months (after years of losses) and obtained ISO-9000 level quality rating. Implemented new compensation plans without increasing overhead and personnel expenses.
Results
After 18 months, all during the worst market recession in the industry’s history:
- Bookings doubled and sales grew 55 percent.
- Profits grew 110 percent and return on equity exceeded 60 percent.
- High morale and no employee turnover.
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Mid-Cap Turnaround:
Problem
An international NASDAQ, mid-cap digital mapping company had lost $20 million profits on $70 million sales the year before and sales were dropping to well under $60 million.
Approach
Lead a turnaround team reporting to the CFO and to the Chairman. Built a sophisticated financial model of the company’s multilayered organization that integrated each operating unit’s budgets and actual performance into a rolling 3-year projection. The model produced monthly variance reports for each business unit and for the consolidated entity and allowed quick analyses of various reorganization and divestiture strategies. Developed the individual business plans and investment banking documents to divest three operating units as stand-alone businesses.
Results
After one year:
- Consolidated 14 production centers reducing consolidated SG&A overheads from $19 to $12 million.
- Stabilized sales at $48 million.
- Large monthly operating losses and negative cash flows turned positive month-to-month.
- Restructured balance sheet. Improved net worth $11 million. Third party took out prime bank’s $21 million debt at a significant haircut.
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United Kingdom Business Expansion and Acquisition in US Auto Market:
Problem
A United Kingdom corporation sought to expand its business in the US automobile market.
Approach
Identified and acquired a small material handling company and established the restructuring plan to expand the facility and productive capacity involving the acquisition, construction, equipment installation, and staffing of a new 45,000 square foot manufacturing plant in the US.
Results
All short and long-term corporate objectives were achieved.
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Industrial Finishing Company Acquisition and Integration:
Problem
Business expansion required an industrial finishing company to supply out-of-state automotive customers with local supply and services.
Approach
Following significant market and industry research, acquired an existing 60,000 square foot plant that met all corporate requirements for long-term growth. For the acquisition, obtained an industrial revenue bond from the state at greatly reduced interest rates.
Results
Developed new operating vision and restructuring plans and successfully started up the plant, meeting all long-term objectives.
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Large International Publishing Company:
Problem
This large publishing company was facing losses of $180 million.
Approach
Developed a new strategic business plan requiring a comprehensive restructuring and consolidation of operations. Shutdown three domestic and 23 foreign operations. Developed and implanted a new marketing strategy, including new products and direct mail order sales. Instituted strict controls including cash flow management.
Results
Bad debt losses were reduced by 10% and returned company to profitability.
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Eastern European Industrialization:
Problem
Following the breakup of the Former Soviet Union there was an oversupply of obsolete and aging industrial capacity in Ukraine that had been dominated by a government controlled market. It was important to redirect military-oriented industry to sell non-military products into domestic and international commercial markets.
Approach
Developed a business plan to incorporate Western technologies and best practices into a simple business model to upgrade and industrialize former military assets into world-class high-quality competitive commercial plants.
Formed a new company with a business model that attracted business leaders such as the former Chairman of Main Hurdman, a retired US ambassador, a leading US manufacturing executive, and a former Assistant Secretary of Labor. Won a competitively bid $4.1 million US government contract to convert a military factory in Ukraine into commercial production.
Results
- Put together a team of American and Soviet executives that one industry expert claimed was among the top-five-percent in the world.
- Evaluated over 20 manufacturing plants in Russia and Ukraine and negotiated 4 joint venture deals to split out die-casting and finishing operations.
- Developed business and financial plans for 2 joint ventures to integrate American technologies and business practices. Attracted interest to invest from Western funds.
- Established the strategic plans to control the operations using indigenous executives, to control the cash flows as the exclusive distributor, to expand operations in multiple plants to produce consistent, high-quality products for export to hard currency markets, and to prepare the plants to be viable supply chains for local markets when those markets develop.
- Established strategic partnerships with American suppliers and designed and produced hybrid American-Moldovan machines, now in use in Ukraine, incorporating American technologies to ensure quality control would be competitive worldwide.
- Organized deals with western, second-tier automotive customers and home appliance customers to export products once the pilot plant was established, some potentials exceeding $10 million annual sales each and one exceeding $100 million.
- Negotiated technology transfer deals to bring Russian and Ukrainian technologies to western markets.
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European Sales:
Problem
Two highly experienced (20-plus-years) subsidiary managing directors in France and Germany resigned from this mid-sized European distribution company and the company’s largest supplier employed one as its regional sales and service executive.
Approach
Established a mutually-acceptable work-out strategy with the two European executives that included long-term relationships. Conducted a search process for replacement of both directors and hired new staff within budget constraints. The new French director became known as the best salesman in the corporation. To avoid similar problems with other regional directors, established new relationships to share assets and expertise across all subsidiaries, improving global sales capabilities significantly while reducing corporate costs.
Working with each subsidiary and meeting with key customers throughout the region, successfully entered European markets long considered beyond the reach of the company.
Results
- Penetrated largest French customer that had previously refused any business with the company. Developed penetration strategies that resulted in sales for a major USA supplier competing against French suppliers.
- Captured a $1 million customer from a US competitor that had owned that customer for more than 10 years while doubling another subsidiary’s gross profits for that product line.
- During the worst depression in the industry’s history, stopped aggregate sales declines across Europe, improved profits and stopped employee turnover by recognizing personnel assets, expanding product lines, improving sales capabilities, and expanding sales activities into other regions such as North Africa
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Fortune 100 International Company:
Problem
This US aerospace and electronics manufacturer had 21 domestic operating divisions, which were required to sell their products and services to international customers through a centralized marketing and sales operation. As international sales grew, they became a greater portion of each division’s sales; and the divisions started to complain that the centralized operation was not servicing their needs.
Approach
Meeting with and working closely with each division, developed a product-focused plan to reorganize the international operation to streamline the coordination of sales for each division. Joining the international operation, implemented the restructuring plan.
Results
In 3 years:
- Sales tripled to $180 million without increasing overhead or increasing personnel.
- Total burden rates decreased 66%; Relationships with the 21 operating divisions improved.
- Control and management of international sales/marketing operations that included representatives & direct sales offices improved significantly.
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Internet B2B E-Commerce Startup:
Opportunity
In the late 1990’s, two MBA students had an idea for an E-bay-type B2B industrial-sales marketing business.
Approach
Guided the development of the business and financial plans, and continued as an advisor after the company was financed following the founders’ graduation.
Results
- The students raised $48 million in venture capital
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Relationships with suppliers and buyers were established. A set of standards for qualifying suppliers was developed. A real time web-based transaction system was created to provide purchasers with the ability to post detailed specifications and drawings and to manage the online bidding process. The system was successfully used by a large number of suppliers and purchasers, resulting in improved market efficiencies.
- The company was sold in less than two years through a $1-billion stock swap with a NASDAQ-listed company.
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Investment Bank Startup:
Opportunity
A former Senior VP from a major New York investment bank wanted to start a new boutique investment-banking firm.
Approach
Joined the founder as a principal, helping to raise $1.2 million in startup capital.
Results
- Developed the business plans and SEC documents to finance a startup mortgage-banking service franchise.
- Developed the business and financial plans for the purchase of a $1.2 billion mortgage bank resulting in a $115 million senior loan commitment from a major money-market institution.
- Organized the startup of a public relations firm.
- Purchased control of a $2 million OTC computer technology and services company after which the balance sheet was restructured, relationships with market makers were improved and the company became listed on NASDAQ NMS within 6 months at which point shareholder value increased approximately ten-fold.
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Bringing a Small Business Out of Bankruptcy Through Consolidation:
Problem
A specialty-design elevator cab manufacturing company was forced to enter into Chapter XI bankruptcy.
Approach
Developed a turnaround plan to consolidate the failing elevator cab company with the owner’s aluminum-windows manufacturing company. Negotiated IRS and union workout settlements. Developed and marketed the financial plan & private placement memorandum. Consolidated projections showed the $12 million company would be profitable.
Results
- Received a $2.5 million equity commitment from a Canadian bank to complete the turnaround and to continue operations.
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Fortune 50 International Telecommunications Company:
Problem
This major telecommunications company was maintaining a large portfolio of underutilized intellectual property assets.
Approach
A comprehensive plan to assess and evaluate relevant IP was developed. Due to the large number of assets to evaluate, a process was developed to quickly identify and further assess potential value.
The company’s portfolio of technologies that had been or were in development was reviewed and technologies that had the highest potential for a more in-depth review were identified. Inventors who thought their technologies had value outside the company were given the opportunity to present their products. Technologies were then selected and market research studies were conducted to define the competitive environment and potential market segments that could be targeted. Further meeting were held with the key technology managers of high-priority techs to evaluate the commercial value of new applications that the technologies could support as well as what would be required to repurpose the techs for those applications. Strategic sales plans were developed to sell or license each technology and/or find strategic partners capable of adding value and repurposing the technology so that they themselves could sell or license it. The technologies were then discretely marketed to the business community through meetings and technology demonstrations.
Results
Several technologies garnered interest in the international marketplace, and highly qualified prospects were presented to the company.
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Nonprofit Services:
Problem
Following the 9/11 attacks, many small businesses in New York were having great difficulty recovering.
Approach
As chairman of MBAs4NYC, helped develop and implement the strategic plan for this start-up non-profit organization to provide business consulting services to Manhattan-based companies adversely affected by 9/11.
Results
During its first year, MBAs4NYC received a grant and provided pro-bono consulting services to over 90 companies.
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