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.