Case Studies
Industries: Manufacturing, Automotive
Primary Services: Interim Management, Business / Operational Assessments, Financial Forecasting
Our client was a $90 million Specialty Rubber Compounding company serving the automotive, electrical, architectural, and appliance markets.
The Company had recently completed a successful 6-month period of operations. They were ahead of budget and also ahead of prior year operating performance. Despite the recent positive trends at the company, the marketplace in which they competed was changing dramatically. Commodity prices which had been rising significantly were now dropping at a more precipitous rate than they had once risen. The primary and secondary markets that the company served were in a severe state of decline, particularly the automotive and electrical markets. Working capital availability was being severely negatively impacted, which required an increased focus on better balance sheet management practices. In addition, during the period of positive growth certain deficiencies had presented themselves with regard to the finance department and operational controls for the Company. At which time, the Company’s Chief Financial Officer had given his notice.
Our experts were engaged to serve as the interim CFO in effort to provide stability and continuity to the Company while it began a search for a new Chief Financial Officer. During the engagement, we assumed all responsibility for the CFO function of the Company. As anticipated, the marketplace did decline and the growth slowed. However new financial reporting and controls were implemented that prepared the Company for the anticipated downturn and allowed the Company to regain its strong liquidity position, maintain its positive lending relationship, and ultimately maximize its profitability during a period of significant market turmoil. We also served to lead the recruiting efforts of and transition to a new permanent CFO.
Brian F. Gleason, CTP
Senior Managing Director
Strategic Advisory Practice
+1 610 659 8118
[email protected]
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