This Specialty Stampings Manufacturer had been struggling with multimillion-dollar losses for over five years.
Operating from a spacious facility in the Midwest, the company’s shareholders had supported the CEO’s multiple turnaround efforts over five years. However, during this period, the losses exceeded $13 million, while the yearly revenues continued to decline. Despite repeated capital injections, the shareholders’ equity remained in the negative.
The Board of Directors (BOD) hired Cascade Partners’ (BlueWater Partners) Restructuring Team to assess the company’s potential for sale, liquidation, or turnaround. After concluding that the company had potential to generate returns for shareholders’ investments in 3-5 years, we provided the BOD with a detailed plan and yearly performance targets. The BOD terminated the CEO and engaged us as the Chief Restructuring Officer (CRO) to implement a 150-day recovery plan. our Lean Operations Team restructured all manufacturing activities, improved personnel placement by ensuring the right people were in the right seats, replaced a small number of managers with highly qualified leaders, and introduced sustainable processes. Our Finance Team restructured budgeting and reporting processes and we recruited and hired an experienced CEO in the 4th month.
The Cascade Advantage
Our team’s strategies successfully brought the company back on schedule, generating a net operating profit in just the fourth month of the recovery plan. Additionally, they have reversed the revenue decline trend and sales are now on track to reach pre-decline levels within the first year. This progress has put the majority shareholder’s goal to exit in 3-5 years back on track.
Update: BlueWater Partners has joined Cascade Partners. Read more here.