Case Study: A Recent Turnaround

by Leo Pound on November 3, 2014

Pound Consulting | Leo Pound

I wanted to share with you an insider’s look at what I do every day. This particular case was a two-year assignment. It began as a classic turnaround case, but quickly evolved into much more. There were family dynamics in place, outdated infrastructure, inadequate accounting systems and a disconnect between management. This case was a Philadelphia-based national printing company. While not part of the original plan, I was also retained as Chief Restructuring Officer. Here’s how I handled it.

The Challenge:
Here’s a sampling of some of the challenges this family-owned company faced and what I had to address;

  • Significant borrowing base deficiency.
  • Deficiency in borrowing base due to material commodity price swing.
  • Management’s reluctance to grasp significance of commodity change and impact to pricing models.
  • Need for leadership change and management accountability.
  • High growth with limited liquidity.
  • Lack of coordinated plant schedule which resulted in excess labor costs.
  • Lack of preventative maintenance in plant which effects quality and throughput.

The Plan:
Leading this assignment, it was important to formulate a strategy that would allow this company to remain family-owned with no dilution or change of control. Here are some of the issues we needed to face;

  • Streamline production, customer service and accounting departments.
  • Collect receivables and establish tighter company-wide payable terms.
  • Improve and lead communication among all parties involved, including the bank, suppliers and employees.
  • Update facility scheduling for maximum efficiency and profitability.

Printing Company | Leo Pound | Pound Consulting

The Result:
To this day, this Philadelphia-based commercial printing company is family-owned. They are still a sought after leader in the industry. They continue to employ hundreds of workers in the region and are now operating with;

  • Renegotiated and extended the company’s credit facility resulting in over $5 million in debt forgiveness.
  • Secured new working capital lines.
  • Negotiated new reduced mortgage on the production facility.

Is your business experiencing similar challenges? Contact me and we can get together and talk about your challenges and how to overcome them.

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Leo Pound

As Pound Consulting Inc.’s founder and principal, Leo Pound is responsible for day-to-day operations, as well as building partnerships, maintaining relationships and providing value to all clients. Born and raised in Philadelphia, Leo has spent most of his career helping companies around the world.  He has worked with many multi-national companies – including ones based or operating in China, Australia, Canada, England, Germany, Japan and more. He has in- depth knowledge of operational and strategic planning, M&A, forecasting and budgeting and cost containment. Leo is a hands-on professional who is sensitive to the pressures and challenges facing a troubled or rapidly growing company and their management team.

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