MorrisAnderson Assisting with the Restart of a Large Beef Processor
Demkota Ranch Beef (New Angus Beef), Aberdeen South Dakota
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.
- 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.
- 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.