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Paper Company

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The Situation

Our client was a $60 million company with interests in Paper Converting, Paper and Plastic Packaging, and Paper Products Manufacturing with operations in several states.

Acquisitions into new business lines, transitional issues from the majority shareholder to his son, higher raw material costs, supply shortages, dwindling stock, a drop-off in travel following 9/11 that resulted in reduced demand for tissue in the “away-from-home” market, the bankruptcy and subsequent reorganization of a major industry competitor, and industry consolidation resulted in three consecutive years of operating losses at this manufacturer.

How We Advised

Our experts engaged to identify ways to return this client to profitability. We quickly identified the profitability and cash flow of each entity and operation.

In addition, our team developed and helped implement a turnaround plan that encompassed the following elements and ultimately returned the Company to profitability:

  • Alleviated capacity constraints,
  • Consolidated fiber purchases — the Company’s largest raw material cost,
  • Renegotiated contracts with major customers,
  • Identified new distribution channels, solidified a succession plan,
  • Refined the methodology for capital spending decisions and calculating after-shrink yields, and
  • Spearheaded the closure of two money-losing divisions

Key Contact

Brian F. Gleason, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 610 659 8118 
[email protected] 

Related Practice Areas

> Business / Operational Assessment 
Most consulting firms approach a business assessment from a purely financial perspective — our assessments provide a 360° view of a business, addressing growth drivers, profitability, and uses of capital. Along with detailed financial performance reviews and cash flow forecasting, our comprehensive Business / Operational Assessment identifies the various challenges clients encounter throughout their operations. 

 

> Turnaround and Restructuring Services 
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation. 

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