Case Study: Turnaround Activities

Client

$28M automotive die maker

Situation

Sales had shrunk to $22M over a nine-month period, then further to a run rate of $16M, driving negative profitability and causing wrenching impacts on the business.

HRI Role

  • Behind-the-scenes interim CEO role, Chief Restructuring Officer role

  • Project managed turnaround process

  • Worked with existing management to ensure continuity

  • Made significant changes to senior leadership team and elevated talented second-level team members

  • Created new organization structure

  • Created internal and external communication plans

  • Worked directly with bank to assist in the restructuring

  • Interviewed and hired new CFO

  • Created customer filters to focus sales efforts

  • Increased business measurement processes and improved management review and reaction approach

  • Rightsized organization to $22M, and then again to $16M

 Results

  • Revenue recovery to $20M, with 12% EBITDA

  • YOY $2.5M improvement in operating income – move from $1M (-6.5%) loss to $1.5M profit (+7%)