Success Stories

Service: Acquisition Due Diligence
Client: Private equity
Company: Food manufacturer
Revenues: $25,000,000
Investment: $12,000,000

• Determined significant issues, risks and contingencies related to a major supplier and customer
• Identified only $1.2 million of management-proposed EBITDA; adjustments totaling $1.6 million as acceptable only
• Recommended valuation adjustment totaling nearly $2 million or abandonment of acquisition

---

Service: Acquisition due diligence
Client: $200,000,000 consumer products company
Company: Specialty niche add-on
Revenues: $30,000,000
Investment: $28,000,000

• Determined management-proposed EBITDA; adjustments in excess of 30 were excessive and unusual.
• Management/seller proposed adjustments, doubled EBITDA and resulted in an excessive purchase price of $7 million.
• Acquisition determined as too costly and appropriately abandoned acquisition

---

Services: Forensics Investigation; CFO
Client: Bank
Company: E-Commerce technology company
Revenues: $30,000,000
Investment: $7,000,000

• Determined management-prepared forecast as unrealistic and likely not attainable
• Identified significant strategic and operational challenges, risks, and contingencies not adequately addressed by management
• Assessed the Company's ability to generate sufficient cash flow to service debt as questionable
• Recommended the Board of Directors consider early sale of the Company to a synergistic buyer

---

Service: Fraud Investigation; crisis management
Client: Bank lending group
Company: Industrial and consumer products manufacturing company
Revenues: $550,000,000
Investment: $80,000,000

• Determined management-prepared bank filings to have significant deficiencies resulting from errors, miscommunications, misunderstandings but not fraud
• Identified significant control weaknesses and a required financial statement restatement
• Assessed management as weak and requiring significant realignment or replacement
• Assisted the Company to reforecast, prepare 13-week rolling forecasts, and identify required operational adjustments
• As a result, the lender group was able to successfully sell its debt at a premium

---

Service: Fraud Investigation; Legal support
Client: Law firm; Private equity/mezzanine lender
Company: Entertainment company
Revenues: $120,000,000
Investment: $20,000,000

• Identified instances of fraudulent financial reporting
• Documented examples of apparent self-dealing and conflicts of interest
• Assisted client in fulfilling its fiduciary responsibility, including resignation from board of directors

---

Service: Turnaround and crisis management
Client: Mezzanine lender
Company: Consumer products company
Revenues: $20,000,000
Investment: $8,000,000

• Determined management-prepared forecast as aggressive to require multiple revisions
• Performed independent, objective assessment of company strategy and operations to determine company viable with new management and revised marketing strategy
• Assessed the Company’s debt to equity and debt service requirements too severe such that an equity infusion was necessary to ensure Company viability

---

Service: Forensics investigation; business analysis; turnaround; CFO
Client: Private equity; board of directors
Company: Industrial manufacturing company
Revenues: $25,000,000
Investment: $16,000,000

• Identified financial reporting requiring financial statement restatement
• Assisted the Company to revise strategy, reforecast, prepare 13-week cash forecasts, and identify required operational adjustments
• Assisted Company in debt restructuring and successful turnaround

---

Service: Performance Improvement Assessment, Key Performance Indicators, COO
Client: Public Traded Company
Company: Semiconductor Equipment Manufacturer
Revenues: $30 million

• Lead times had drifted out to 6 months and shipments were 2 months behind.
• Assembly operation was to level; loaded performance metrics established.
• Capacity constraint was identified and corrected in a fabricated component.
• Material shortages were eliminated by creating blanket orders with vendors and providing delivery targets in line with the production rate.
• Performance improved rapidly, past-due orders were eliminated in 4 months, and lead times were systematically reduced to 3 weeks after 6 months.

---

Service: Merger Support, Product line cost analysis, Expense reduction, Implementation Support
Client: Public Traded Company
Company: Medical Equipment Manufacturer
Revenues: $200 million
Investment: $30 million

• Acquired company was located in an expensive facility with redundant staff.
• Determined and verified current variable cost of all products.
• Identified a potential contract manufacturing in Mexico and obtained a quote.
• Recommended moving the product line to another company facility.
• Planned and coordinated move resulting in a $3.5 million expense reduction.

---

Service: Performance Improvement Assessment, Implementation Coordination
Client: Public Traded Company
Company: Third Party Distributor
Revenues: $250 million

• Company’s largest distribution center was out of capacity, delivery performance had slipped, and productivity had decreased over five years.
• Assessment determined the warehouse was cluttered, rack utilization poor, and layout prevented efficient picking and replenishment.
• Layout was redesigned and storage locations optimized for efficient picking.
• Storage racks were turned 90 degrees and products relocated based on demand.
• This resulted in a 50% increase in both capacity and productivity; a manual was developed describing design criteria and execution and implementation processes.

---

Service: Crisis Management, Dashboard Design, Lean Implementation
Client: Private Equity Company
Company: Airframe PCB Contract Assembly
Revenues: $150 million

• This third-party contract assembly company had purchased and moved three PCB assembly operations into a new facility. 
• Problems during start-up slowed deliveries, which impacted airframe deliveries worldwide.
• Blitz Kaizen events were used to restructure critical operations based on Lean principles.
• Parts shortage and ERP system issues were identified and resolved.
• Over a three month period, productivity improved 27% and throughput by 16%.