• The Company has been successful throughout the industry’s growth phase but encountered difficult challenges as their industry matured with pricing pressures and declining operating margins.
• The Company had invested heavily in plant equipment and was generating inadequate returns on the capital invested.
• The Company had incurred operating losses for two years and had violated its loan covenants.
• Working with management, Fort Dearborn developed a business plan to reduce operating expenses including reductions in force and insurance expenses.
• Based on our customer profitability analyses, management implemented targeted price increases on selected customers and services.
• Management decided to sell certain equipment and applied return on investment analyses on future capital expenditures.
• Based our combined efforts with management, the Company returned to profitability.