Case Studies

Interim Management Improves Profitability

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

Read More close Created with Sketch.
Home·Interim Management Improves Profitability

The Situation

Trucker with logistics and leasing operations. $500 million annual sales. $150 million debt.

  • As a result of the economic downturn, the company was facing mounting operating losses and losing market share due to high internal operating costs.
  • The company required immediate right-sizing and cost reduction efforts to stabilize cash and return to profitability.
  • The bank was pressuring the company to find a new lender due to its eroding financial position.

How We Advised

Our experts were appointed as interim COO and CRO to restructure company operations, stabilize operations, and improve the relationship with the bank.

  • We identified over $20 million in SG&A personnel cost reductions to fund the turnaround and restructuring (cost reductions had no impact on customer service levels or the timely performance of operations activities).
  • Closed or sold over two dozen underperforming terminal operations (120 total remote sites across the country), which dramatically improved cash flow.
  • Lead the investment banking effort to successfully sell the truck leasing division to a competitor at book value, which avoided a write-down and a possible bankruptcy.
  • The successful restructuring efforts enabled the company to return to positive cash flow and profitability within nine months.
  • Re-established the banking relationship with the primary lender, avoiding costly refinancing efforts.
  • The 3rd Party Logistics company (3PL) is thriving today and is one of the top 50 worldwide 3PL providers.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

Related Practice Areas

> 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.

 

> 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. 

Our Experts