Case Studies

Turnaround of a Graphic Arts Business

J.S. Held Acquires GLI Advisors, Strengthening Our Construction Project Support Services in the Western US and Hawaii

Read More close Created with Sketch.
Home·Turnaround of a Graphic Arts Business

The Situation

Designer of high-end advertising graphics and produces various high-quality graphics for consumer products companies and advertising agencies.

  • The Company was losing money because volume was down severely due to cutbacks in discretionary advertising, yet the company’s cost structure had remained constant.
  • The Company was saddled with $3 million in debt, cash was short, and as a result, multiple creditors were threatening to stop providing goods and services, and several equipment lessors were threatening repossession on their collateral due to non-payment on their leases.

How We Advised

  • A turnaround plan was developed to downsize the company and to manage the tight liquidity situation.
  • CFO was replaced as he was incapable of managing cash and vendors in this situation; one of our financial experts assumed the interim CFO position.
  • Worked with the CEO/owner to resize the company for the current sales volume, laid off employees, and moved out of the rental space that we no longer needed.
  • Led negotiations with the secured lender and several equipment lessors to restructure deals that worked within the 13-week cash budget we had constructed and verified.
  • Led efforts to expedite the collection of receivables, the faster completion of customer in-process jobs to improve cash flow.
  • Worked with the sales management to set order targets that assured the company a minimum of a breakeven sales volume but higher price levels.
  • Results
  • Thanks to cooperation from many parties and a belief in the reasonableness of our business and cash plans, the company began generating positive cash flow and achieving its plan.
  • The lender was feeling secure in its collateral again by the time a permanent CFO was hired.

Key Contact

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

Related Practice Areas

> 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. 

 

> Chief Restructuring Officer (CRO) and Interim Management Services 
Our experienced C-suite interim executives advise and support companies in financial distress, experiencing hypergrowth, or that are challenged by critical vacancies among senior leadership. Whether the leadership void results from operating challenges, a recent officer resignation, the need for added support during busy periods, or during an extended job search for the right permanent hire, our experienced executives provide immediate relief and value. 

 

> Office of the CFO & Corporate Finance Support 
The financial function is a critical partner in value creation in most businesses. We provide unparalleled support to the Office of the CFO to shape organizational strategy and enhance long-term business value. As CFOs and finance leadership across sectors face increasing demands, understaffing, and unprecedented challenges, we deliver guidance regarding financial planning and operations improvement, risk mitigation, and strategic business intelligence. 

Our Experts