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The Client
Closely-held firm in New England, known as an innovator
in its niche, whose revenue peaked at $50,000,000 in during the late 1990s.
Still led by the founder and family.
The Deal
Collapse of IT market halved revenue at this firm, whose
remaining brand name clients were withholding payments for projects gone awry
and to conserve cash themselves.
The Need: Professional Management
The firm required an outsider, one with the right mix of
leadership, strategic and financial skills, to assess and then stabilize the
cash consuming divisions.
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The Solution
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Place a professional manager, with full P&L and
balance sheet responsibility for the divisions, onsite for 13 months.
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Consolidate three divisions into one, reducing total
costs by 50%, and through collections - not write-offs - reduce accounts
receivable by 65% to 45 days outstanding.
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Extricate the firm from unprofitable major client
contracts without litigation, saving what would have been unrecoverable losses
equal to the entire firm’s annual earnings.
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Lead firm-wide sales planning, and both initiate and
monitor phase I development of new IT solutions.
The Outcome
With its operations stream-lined and a new, life science
focused strategy, the firm completed a merger with an equally-sized firm and
resumed its growth.
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