Case History: Planning and Implementing a Turnaround For Business Held by Estate of Founder

The Organization

Distributor/Manufacturer installing large body systems on truck chassis' with sophisticated control and safety devices.

The Situation
Significant drop in market demand with onset of recession, 37% sales reduction over 4 year period and first time losses in over 4 years. In midst of the four year decline, (1) owner/manager died, and (2) the bank was calling their loans.

The Approach
A comprehensive evaluation of the business was conducted to determine the ongoing viability of the business and changes required. This diagnostic study included in-depth review of...

  • Markets to identify size, prospects and competitive position
  • Fiscal condition and performance to establish capital requirements
  • and potential for margin improvement
  • Operations for possible gains in productivity
  • Organization & management in terms of capabilities and structure

The evaluation clearly indicated that a new source of capital was mandatory, but that the market could be expected to rebound within the following year and, with managerial changes, the business could be profitable within a reasonably short period.

At owner's request, Pace assisted in developing a realistic strategy for the business and preparing a comprehensive business plan. With these tools, a new source of working capital financing was obtained. Pace also provided on-site interim management at CEO level to ensure the effective completion of the agreed upon changes and restructuring. Sales increased by over 20% and the Company returned to profitable operation.

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