Case Studies

Cost Reductions Lead to Company Sale

J.S. Held Acquires Clark Seif Clark, Strengthening West Coast Capabilities for Environmental Claims, Disputes, and Catastrophe Response

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The Situation

Manufacturer and distributor of athletic, sport, casual and all-weather shoes and boots. $200 million sales. $40 million debt.

  • Well established design and manufacturing company for mass-market athletic, sport, casual and all weather shoes and boots was experiencing revenue and margin declines
  • Equity ownership was concerned that the company niche was being threatened by offshore competition and that company’s long term visibility was being threatened
  • Company was losing market to increased offshore competition

How We Advised

  • Our experts conducted a business viability assessment and concluded that the company’s business plan was sound, but that manufacturing and design controls were weak
  • We recommended and implemented tighter controls for cash management, productivity measurement and enforcement and scrap reduction
  • Outsourcing production to low-cost producing regions was a midterm strategy required to lower unit costs and improve margins
  • Our team confirmed that cost reductions were achievable, which stabilized profitability
  • Cash flow and availability projected to be sufficient to fund operations
  • Company was able to market itself successfully to a new equity sponsor

Key Contact

Dan F. Dooley, CTP
Senior Managing Director
Strategic Advisory Practice
+1 603 660 8952
[email protected]

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> Business / Operational Assessment
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