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War Stories - Examples of Responses To Crisis
Arranged the $3.0 million sale of a well-established software developer
After twenty years in business, the owners decided to sell. Under contract with the owners, we -
- wrote a highly persuasive selling memorandum
- created a database of over two hundred targeted prospects
- identified and contacted the ultimate buyer from the database
- raised the offer from $1.1 million to $2.0 million by uncovering the companies' combined profitability, and
- closed the negotiations for a cash price of $2.4 million plus retained assets of over $600 thousand.
Solved a cable equipment company's financial crisis
After this central Ohio manufacturer's credit was canceled, we -
- persuaded the bank to restore the credit line,
- accelerated collections,
- designed a workout plan with creditors,
- paid off the bank completely in four months, and
- launched a successful local stock underwriting.
Conceived and directed a distributor's out-of-court bankruptcy
Working with the owners of this troubled central Ohio distributor, we -
- developed short term financial plans,
- made a "stand-still" agreement with the bank,
- developed a plan to restructure $1 million of badly past-due supplier debt,
- successfully negotiated with more than 150 suppliers to eliminate, pay off at a deep discount, or reschedule all the debt, and subsequently
- developed a plan that protected the owners from large potential losses under personal guarantees.
Sold a single-site computer retailer for more than 4X the seller's expectations
By re-conceptualizing the liquidation of the store as a strategic partnership with the right buyer, we -
- got 100% of book value, in cash, for a facility with a liquidation value of 25% of that amount, and
- negotiated future royalty payments that have already doubled the initial purchase price.
Managed an oil company's recovery from bankruptcy
As this central Ohio oil company came out of bankruptcy, we -
- completed long-stalled joint venture negotiations,
- resolved threatened litigation,
- dealt with divisive board members,
- restored commercial banking relations,
- developed a clear, long-term business strategy, and
- successfully negotiated the spin-off of the major assets to a new ownership group.
Reorganized a manufacturer's financial management
When this central Ohio capital-goods manufacturer fired its long-time CFO, we -
- reorganized the financial department,
- recruited a new controller,
- significantly reduced receivables,
- opened up communications with the other departments,
- doubled the company's credit line while relieving the owner of personal guarantees, and
- engaged the top management in the successful creation of a competitive strategy designed to increase volume, reduce costs and improve return on assets.
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