Case Studies

Plant Consolidation and Right-Sizing Stabilize Company

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

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Home·Plant Consolidation and Right-Sizing Stabilize Company

The Situation

Multi-plant printing ad specialty and proprietary artwork layout software solutions developer. $200 million in revenues. $50 million debt.

  • Revenues were dropping for several years.
  • Ad specialty market shift from print media to the internet coupled with the Great Recession led to significant volume losses at each facility.
  • Company was slow to react to volume losses, which resulted in million-dollar operating losses annually and loan covenant violations.
  • There was a high probability the Company would lose its financing.

How We Advised

  • Our experts were engaged by the Company to perform a viability assessment and restructuring plan.
  • We engineered a comprehensive crisis management, turnaround, and cash management strategy to re-engineer and right-size the Company.
  • Plant consolidations and corporate right-sizing reduced operating expenses by over a million dollars annually.
  • Accelerated development and marketing of the Company’s proprietary layout software to augment revenues and open new market revenue-generating opportunities.
  • Our team identified cost reductions exceeding a million dollars annually.
  • Cost reductions, combined with the accelerated software development and marketing revenue program, resolved lender concerns and reestablished banking relationships, preserving all existing borrowing.
  • Management was able to return the company to profitability while generating sufficient positive cash flow to service all business obligations and debt service.
  • Re-established the banking relationship with the primary lender avoiding costly re-financing efforts.

Key Contact

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

Related Practice Areas

> Business Plan Validation
We deliver integrated solutions for distressed and insolvent businesses that maximize recovery, mitigate risk, and restore enterprise value. Our experts are retained to help distressed organizations stabilize operations, protect stakeholder interests, and execute turnaround strategies. We take an operationally-focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Our team delivers hands-on guidance and independent analysis to lenders, creditors, legal counsel, executive teams, boards of directors, and investors.

 

> 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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