CASE STUDY 1

 

Industry:        Value added Equipment/software/service Distributor-serving multiple industries

Size:             30 employees.

Entity:           Non-public corporation.

Situation:      Growing sales, losses.

Findings:       Too diversified; no economies.

                     No P&L information by business segment.

                     Equipment Service contracts were under priced.

                     Core industry –Banking.

Action:          Developed and implemented a turnaround plan and strategy focused on the banking industry.

                     Implemented a business segment contribution margin P&L.

                     Increased equipment service prices 10%.

                     Mobilized all efforts towards the banking industry.

                     Sold and/or closed down all other business segments.

Results:         Eliminated losses.

                     Achieved 11.1% pre owner compensation margin on sales over a five-year period while growing sales 5 times.

                     Company presently, doing in excess of $100 million in sales with 300 employees.

 

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