Case Studies

Turnaround Saves Aircraft Manufacturer

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

Read More close Created with Sketch.
Home·Turnaround Saves Aircraft Manufacturer

The Situation

A $50 million manufacturer of crop-duster aircraft and aircraft components was $15 million in debt and owned by a strong-willed entrepreneur.

  • The company was losing $10 million annually.
  • Significant cash was being spent on R&D for potential new programs.
  • The workforce of 500 was significantly overstaffed, and the company had 11 VPs.
  • Serious cash, quality, and delivery performance issues.

How We Advised

Our team was appointed as COO with the authority to reorganize the company.

  • Terminated 4 VPs and laid off over 20% of the workforce.
  • Cut back R&D to affordable levels.
  • Communicated the turnaround plan to all employees via town hall meetings.
  • Focused the management team on quality and delivery issues.
  • The company operated at a breakeven point within 2 months.
  • Quality and delivery issues were significantly improved.
  • Positive cash flow improved relations with the lender and key suppliers.

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. 

Key Contact

For additional information about the engagement or to learn more about our services, contact:

Our Experts