Case History: Rebuilding Business Held in Trust
The Organization
A specialty consumer products manufacturing company.
The Situation
Sales had deteriorated for the last 18 months as the owner became increasingly incapacitated. When he became totally unable to be involved, the company simple closed down. Pace was asked to determine what possible alternative courses of action should be considered and how best to minimize losses to the estate and family.
The Approach
Pace began by making a very fast evaluation of the business, including a brief check of the market for the company's products. From this overview, it became evident that the business could reopen and operated with funds, which could be made available internally.
Arrangements were made for Pace to assume operating control of the company and consummate its sale. We placed an experienced member of our staff on site and with others from the Group; a crash program was initiated to...
- Re-establish customer relations and develop sales momentum
- Balance inventories while restarting manufacturing operations
- Untangle the highly confused records and corporate matters
- Locate potential buyers and close on a sale
Results
As projected, Pace was able to bring the business to a profitable condition in approximately 60 days. The required "new" cash was developed internally through sale of selected assets. With this as a base, Pace was successful in identifying a buyer for the ongoing business at a price well above book value. The new owners assumed possession less than 8 months after our initial introduction.