• The Company had incurred net losses for three years while continuing to increase sales and dealer locations throughout the US.
• The growth generated increased inventories which, combined with losses, resulted in significant increases in the Company’s borrowings from it’s multi-bank lending group.
• Fort Dearborn worked closely with management to develop a detailed comprehensive business plan.
• Strategic, tactical and financial in nature, the business plan was used not only as a management action tool but also as the Company’s “story” during its refinancing efforts.
• While management had already begun to implement lean manufacturing and cost containment efforts, FDP identified additional expense reductions which focused on inefficient spending in parts purchasing, elimination of the second shift and other operating expenses.
• Fort Dearborn also assisted management with the evaluation of facility consolidation, preparation of a formal competitive analysis, and profitability by Channel and Customer.
• Interaction between Fort Dearborn and management fostered improved financial discipline and accountability within this large family-owned business, particularly in the areas of market direction, product introduction and working capital investment and management.
• Planning discussions highlighted the need for management changes, driving senior management to make difficult personnel decisions.
• The result - The Company successfully refinanced its credit facility, gained access to additional capital, and the lead lender remained as the lead financing source for the Company’s new, larger credit facility.