• The Company was experiencing operating losses for several years since completing a large acquisition. The Company was in a severe liquidity crisis due to the lack of profitability and cash flow resulting from the ongoing operating losses.
• The Company had just written off approximately $7 million of assets and goodwill relating to their acquisition, resulting in negative shareholder's equity for the business.
• Fort Dearborn Partners (FDP) worked with management to identify and evaluate its strategic alternatives and to initiate profit improvement actions.
FDP Performed the Following:
• Reorganized and upgraded the management team relating to Sales, Customer Service and IT
• Evaluated financing and capital alternatives
• Assisted with recommendations for addressing the cash liquidity crisis and stabilized vendor relations
• Made suggestions to increase sales revenue, improve employee productivity and reduce operating expenses and employee headcount
• Improved customer service, collection efforts and cash realization through instituting a billing compliance review and improving training
• Established contract profitability templates and inventory management
• Improved financial reporting and communications with key stakeholders