Semiconductor Equipment Company
Description: A family owned manufacturer of semiconductor equipment, this company had been the market leader in its field for a number of years. As competition increased and the market matured, the company experienced losses, a loss of its bank line of credit and significant delays in the development cycle of follow on products, leading to a significant reduction in market share.
Challenge: Avoid Bankruptcy; generate new revenue; arrange for bank financing; get the development cycle on track.
Actions: Reduce costs by headcount reductions and reductions in carried inventory; arrange for new line of credit for both domestic and international sales; restructure sales organization including identifying and recruiting new channel partners; revamp the product development process with extensive controls put a system of financial controls in place including rigid cash management.
Results: After experience three consecutive years of losses, the company was profitable in 2008; several new products were introduced and the owners have a playbook for management of the company.
World Wide Branded Consumer Electronics Company
Description: A privately owned visual presentation company where revenue had declined significantly and was not profitable. The debt load had risen to a level that far surpassed its ability to repay it. The company was also administratively supporting three other related companies without compensation.
Challenge: Immediately reduce operating expenses, revamp the sales and operational management, reduce the debt load and return the company to profitability.
Results: Reduced the long term debt load from $11 Million to $1 Million by renegotiating the debt with the debt holders. The sales function was reorganized and streamlined. The commission structure was restructured and focused on selling the company’s more profitable product lines. Expenses were reduced by restructuring the administrative functions so that they would only support the existing company. The Company returned to profitability with twelve months resulting in a successful sale.
Regional Restaurant Chain
Description: A California based high end restaurant chain was operating in bankruptcy and was in the process of conducting a sale of their restaurants under the bankruptcy courts supervision.
Challenge: Manage the sales process by conducting the sale of the restaurants and related liquor licenses in a way that maximized the return to the creditors and adhered to the rules mandated by the bankruptcy process.
Results:Established a documented and cohesive process to monitor the sale activities, status of each bidder, access to due diligence material and facilitate the sale of each location. The process of finalizing the sales of the restaurants was successfully completed.
