Taking a holistic approach is essential to a successful and lasting turnaround
In times like these, you will appreciate our solid, objective judgment. As experienced turnaround and restructuring advisors, we can quickly determine when it is possible to get a company back on track and when it is wise to liquidate.
Our turnaround and restructuring specialists will help you look at the big picture, including cost estimating and cost reduction strategies, employee productivity, quality issues, inventory control, health care, logistics, information technology, and more. Because they are part of a large firm, they also can turn to their colleagues in operations improvement to find ways for your company to quickly trim costs and improve performance.
You can depend on our turnaround and restructuring team to take a holistic look at your business, provide comprehensive financial and operation analyses, and establish business cost reduction plans. The team is made up of consultants who have the hands-on experience to help you implement the suggestions. In other words, they can tell you how to get back on track, and then help you get there.
In 2007, Plante Moran received the Turnaround of the Year Award from the Michigan Chapter of the Turnaround Management Association for its work returning a foam products manufacturer to profitability in 60 days, following two consecutive years of losses.
Back to profitability after selling underperforming divisions
A $40 million, family-owned automotive supplier had a history of making money, but that dramatically changed after management decided to follow the company’s primary customer overseas. What went wrong? How could they return to profitability? Management turned to Plante Moran for answers. Our multidisciplinary team identified opportunities and developed a cost reduction strategy across the company and analyzed the company’s underperforming divisions. With facts in hand, management implemented the money-saving suggestions and turned to our turnaround and restructuring team to help prepare for and assist in the sale of one underperforming division and completely restructure the leadership and business policies of another division.
With these changes and a sound cost reduction program implemented throughout the company, the supplier achieved 8 percent operating income the following year and they continue to thrive.
Three years of losses call for a turnaround
Because it had been emphasizing growth over profitability and working capital, a $90 million industrial supply distributor was willing to accept losses initially, but when the losses continued on for three years, they called in the Plante Moran turnaround consultants. They began by focusing on collections to improve the company’s cash position, keeping the bank informed of progress along the way.
The turnaround team also found opportunities to reduce overhead, analyzed profit by customer and product, and created a new pricing strategy, shifting some staff costs to customers.
Ineligible accounts receivables were reduced by $2 million, the company returned to profitability, and the bank relationship was stabilized.