Assisting with the Restart of a Large Beef Processor

Demkota Ranch Beef (New Angus Beef)

Aberdeen, South Dakota

Challenge

Beef slaughter and processing Company. Start-up of a shutdown company that was purchased through a 363 debt to equity conversion. Sales of $200 million.


  • Company was a start-up in the competitive beef slaughter and fabrication industry.
  • No infrastructure at company in any function group.
  • Experienced CEO and President to build an organization, but no one else.
  • Aggressive start-up plan required many new hires, yet unemployment in the area is very low.
  • First large scale beef processing facility in South Dakota.
  • Failed original business created many skeptical customers, creditors and employees.

Solution

  • MorrisAnderson vetted the business plan for reasonableness and green lighted the project.
  • Worked together with the Senior Management Team on Strategy, Structure and Reporting.
  • Created Tracking Systems by working with IT.
  • Developed Sales Comps for Sales Team to understand how they were doing.
  • Created financial function from scratch.
  • Tracked Cash Flow and Accounting Results for Ownership.
  • Worked with Government Agencies to ensure compliance.

Results

  • Company hired 350 employees in 4 months.
  • Revenue increased to $3 million per week in 6 months.
  • Accounting Department provided useful tracking data on a daily basis and monthly financial statements.
  • Sales team understood where to focus sales efforts.
  • Operating Expenses kept in line with projections.