- Designs high-end advertising graphics and produces various high-quality graphics for consumer products companies and advertising agencies.
- Company was losing money because volume was down severely due to cutbacks in discretionary advertising, yet the company’s cost structure had remained constant.
- Company was saddled with $3 million in debt, cash was short and as a result, multiple creditors were threatening to stop providing goods and services, and several equipment lessors were threatening repossession on their collateral due to non-payment on their leases.
- A turnaround plan was developed to downsize the company and to manage the tight liquidity situation.
- CFO was replaced as he was incapable of managing cash and vendors in this situation; one of our financial experts assumed the interim CFO position.
- Worked with the CEO/owner to resize the company for the current sales volume and laid-off employees and moved out rental space that we no longer needed.
- Led negotiations with the secured lender and several equipment lessors to restructure deals that worked within the 13-week cash budget we had constructed and verified.
- Led efforts to expedite the collection of receivables, the faster completion of customer in-process jobs to improve cash flow.
- Worked with the sales management to set order targets that assured the company a minimum of a breakeven sales volume but higher price levels.
- Thanks to cooperation from many parties and a belief in the reasonableness of our business and cash plans, the company began generating positive cash flow and achieving its plan.
- The lender was feeling secure in its collateral again by the time a permanent CFO was hired.