Focus and Execution Solves Problems: Chief Executive Data
Processing
When a $9.0 million capital infusion and new management failed
to produce increased revenue and profit, the investor made a
change and appointed a PMCG Principal Chief Executive Officer.
PMCG immediately set about reprioritizing, restructuring and
exiting cash negative businesses.
Within three months we were
able to achieve a positive cash flow by refocusing resources
on profitable products and customers. Eleven months later, the
business was sold for cash.
Losing a Little to Save More: Consulting on a Family Farm
When a family farm with $25.0 million in revenue and 8,000 acres
of grapes under cultivation fell victim to poor management practices
and successive poor harvests, a PMCG Principal was chosen to
advise. Long-term family disagreements and pressures from lenders
owed over $34.0 million were driving the enterprise towards
a forced liquidation disadvantageous to all parties, including
the lenders. After an in-depth investigation and consultation
with all of the stakeholders, including the company's lenders,
PMCG Principals and Associates identified the problems, assessed
management capabilities and recommended critical management
changes to restore the confidence of family members and outside
lenders. Then, working with the new management, PMCG proposed
better economic results for all parties through a partial liquidation
to pay down debt from the sale of non-productive assets. This
action reduced debt by over $11.0 million and preserved a profitable
core operation that greatly improved debt service coverage for
the remaining obligations.
Given Lemons
- Make Lemonade: Stepping Up to the Plate as C.O.O.
After losses of $13.0 million during its initial three years,
a start-up manufacturer and marketer of personal hygiene products
brought in a PMCG Principal as Chief Operating Officer. The
company suffered from low margins, ongoing patent litigation
expenses of over $50,000 per month, too much overhead and an
organization-wide inability to focus and prioritize. Falling
sales, declining profitability and significant past-due trade
payables were all an immediate problem. PMCG analyzed marketing,
administrative operations, purchasing and manufacturing and
then restructured and reduced staff. The PMCG Principal rescheduled
the trade debt, put in place an integrated marketing and manufacturing
plan and implemented a budget that reduced inventory, significantly
lowered unit cost and doubled capacity. In a little under twelve
months, cash break-even was achieved.
