Creating Cash Out of Excess Working Capital


Annual Sales



Pulver Systems, Chicago Illinois


Manufacturer of material handling equipment for commercial bakeries. $20 million in annual sale. $3 million bank debt.

  • Second generation Family Business with weak Financial and manufacturing management.
  • Multi-year sales growth with addition of international customer, but international sales volume faded and associated SG&A costs did not.
  • Several larger jobs had lost money.
  • Customer collection practices poor.
  • Bank lender 30% over-advanced on collateral value.
  • Business not saleable in its weak condition.
  • Owner had personal guarantee and liquidation represented a sure loss for the lender.


  • MorrisAnderson engaged as CRO to provide Assessment and create Turnaround Plan.
  • Company downsized, inserted new controls on bidding and job management, collected AR hard, reduced plant WIP inventory to generate cash.
  • Discovered manufacturing management involved in theft and fired top 3 managers and re-staffed management.
  • Negotiated with major suppliers to keep raw materials flowing.


  • Company EBITDA improved from $(1) million to $1.5 million annually.
  • Refinanced company to a new lender.