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Turnaround Case Study

Situation

A $50M revenue tier 1 supplier to the automotive industry had profitable new programs to launch, but was out of cash and not paying suppliers on time. Freight costs were skyrocketing and on-time delivery was beginning to plummet.

Solution

- Gathered input from the team, making them a part of the solution, and assessed the situation. Top priorities were developed and executed

- One business segment was divested to raise cash and allow
for focus on the main business

- Two unprofitable programs with customers were exited. Worked with customers to build parts banks, and move tools to a competitor  

- Customer tooling reimbursements were pulled ahead

- Resources were focused on launch of new programs

- Key talent was retained

Satisfaction

* Delivery performance improved beyond customer expectations

* Quarterly EBITDA rose from a loss of -$1.2M to a gain of +$2.2M

* The business was successfully sold by the Private Equity owner.