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%)