Turnaround Consulting: Metal Stampings Manufacturer

Client

A Specialty Stampings Manufacturer serving multiple industries experienced over five years of multimillion-dollar losses.

Situation

  • Operating out of a large facility in the Midwest
  • Shareholders had supported CEO’s multiple turnaround plans over 5 years
  • Losses over those 5 years exceeded $13MM on declining yearly revenues
  • Despite numerous equity infusions, shareholders’ equity was negative

Solution

  • Board of Directors (BOD) engaged BlueWater Partners (BWP) to conduct an assessment to evaluate a sale, liquidation, or turnaround
  • Concluded the company still had potential and could return the shareholders’ equity investments in 3-5 years
  • Provided a detailed recovery plan and yearly performance targets
  • BOD terminated CEO and engaged BWP as CRO to implement 150-day recovery plan
  • BWP’s Lean Operations Team restructured all manufacturing activities, put the right people in the right seats, replaced a small number of managers with highly qualified leaders, and introduced sustainable processes
  • BWP’s Finance Team restructured the budgeting and reporting processes
  • Recruited and hired a CEO with deep industry experience in 4th month

Results

  • Generated net operating profit on schedule in the 4th month of recovery plan
  • Reversed the revenue decline – sales are now projected to be at predecline levels within the first year
  • Put the majority shareholder’s goal to exit in 3-5 years back on track

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