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Industry Turnaround Management Case Studies

Company Description
Global Leader in
the Travel Industry

$100 million in revenue

Company Challenges

  • Insufficient cash flow to cover debt service obligations

NECP Solutions

  • Reviewed restructuring plan
     

  • Recommended further expense reductions
     

  • Recommended changes in equity structure

Company Description
Frozen Food  Processing Company

Located in northwestern United States. Approximately $34 million in sales

Company Challenges

  • Loss of major customer  who was the cornerstone of original business plan

  • Business plan lacked contingencies

  • Utilization rates on new machinery less than 50%

  • Yields 10 points off industry standards

NECP Solutions

  • Developed sales strategy for CEO to follow
     

  • Reduced head count in factory
     

  • Improved QC processes to eliminate waste and increase yields
     

  • Restructured debt with bank

Company Description
Manufacturing
Wire & Cable

Approximately $15 million in sales. Fully depreciated capital assets

Company Challenges

  • Foreign competition particularly from Mexico

  • Cash crunch resulting from collateral deterioration

  • Hostile landlord

NECP Solutions

  • Worked down bank debt through normal course of business
     

  • Purchased machinery & equipment from bank
     

  • Absorbed selected customers into other business infrastructure
     

  • Ceased operations in New England
     

Company Description
Trucking/Shipping

Approximately $10 million in sales. Combination of owned and leased tractors and trailers

Company Challenges

  • Top line deterioration

  • Margin compression

  • SG&A increases

NECP Solutions

  • Developed schedule of sales calls for CEO. Fired unprofitable customers.
     

  • Convinced management that they had to increase rates.
     

  • Restructured debt and returned under-performing assets.

Company Description
Software Company

Located in Boston area with approximately $10 million in sales

Company Challenges

  • Poor management processes

  • Utilization rates of consultants not measured

  • Excess overhead resulting from top-heavy management and unfavorable lease agreement

NECP Solutions

  • Developed sales strategy for CEO to follow
     

  • Increased pricing to reflect increases in material costs
     

  • Wrote off or liquidated inventory. Manufactured only to specific orders
     

  • Reduced corporate overhead

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