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Restructuring Plan Reverses $13 million Operating Loss

This company had three manufacturing plants located in Florida, Texas, and California.  However, the California plant was the only profitable plant and management did not see a problem with maintaining the status quo.

 

Working with the Board of Directors developed a detailed restructuring plan to resolve the issue.  With Board approval management bought-in for a consolidation of plant activities.  Moved all manufacturing to the California plant and arranged for the two products that required local production to be produced through toll manufacturers.  Closed the remaining two plants and moved the assets to California.  We were also able to sell both of the closed plants within one year.

As a result, a $13 million operating loss was reversed enabling the company to obtain maximum profitability.

Replacing R & D Leadership Enables 100% Plant Capacity

In order to compete effectively, this company needed to address changing markets and product demand.  As the market changed and new technologies emerged, the company had repeatedly failed to adapt.  One plant was closed three months per year and was operating at approximately 70% capacity.

 

After meeting with all departments, sales, marketing, finance, plants and R & D we determined the problem was in R&D.  Collaborated with R&D and instructed the department on what exactly needed to change in the products.  After two months of failing to meet timelines or changes, our recommendation was to replace the head of R&D.  After this change was made, products were modified and blended to meet both customer and consumer demand.

The plant began operating year around and capacity was increased from 70% to 110% requiring the company to import from another of its plants in South Africa.

 

Identifying Loophole Generates $2.5 million Net Profit

This company needed a way to shorten the EPA registration processes that can take up to two years getting a new product to market.

 

Working with advice from  environmental law attorneys a loophole was identified in the legislation that would exempt the new product from registration.  Notified EPA of the new product launch and non-registration. 

 

The product generated $2.5 million net profit on four million pounds of product sold during what would have been the two year process to register the product.

New Long-Term Strategy returns $12 million in held funds

There were five producers of a key ingredient needed by this company and all five producers always had the exact same price, thus having a major impact on the profitability to the company.

 Working with management and gaining an insight on the long-term importance of this ingredient we traveled to China and negotiated a long-term contract with a company to build a plant and supply 30 million pounds per year of this ingredient.  We also located a local Chinese company to injection mold the company's buckets, leading to the import of a finished product.  This broke a pricing hold in the market that had existed for 20 plus years.  All five producers filed anti-dumping against the company leading to a 77% anti-dumping duty being assessed.  Over a two year period we initiated plans to overturn the penalties. 

 

On appeal, the company gained 74% reduction of duty and was returned $12 million held in escrow during the two-year appeal process.

Breaking the pricing hold in the market helped the company go from 0% ROS on $206 million in sales to 10.4% ROS on $500 million in sales within five years.

New Internet Policy

 Due to competitive pricing on the internet for the same products, the retail dealer segment was losing interest in promoting this company's product base.  The company had one brand of product that sold to retail dealers and internet company's as well.

 

We worked with management and visited several of their larger dealers.  Our solution was a new internet policy that was implemented and gave the retail dealers more protection while still allowing the internet company's to be competitive.  This policy became the strongest policy in the industry, and is now being copied by manufacturers globally.

 

Over a three-year period, the new policy generated more than 51% revenue growth.

 

 

 

 

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Specializing in management consulting

Brand Extension/New Product Development

This E.U. company produces water treatment chemicals marketed to NGO's, aid agencies for disaster relief and water treatment in third world countries.  By the nature of their business it tends to be low margin and unpredictable in growth based on the number of weather disasters each year.

 

Our assignment was to look at their operation and create a consumer products division using their existing technology.  The first product created was fairly simple.  We took one of their existing products and created retail packaging for hiking, camping, boating, international travel, and emergency preparedness.   The second product was more challenging.  Again, we took one of their existing products and created retail packaging targeting the laundry aisle in major grocery and discount department stores.  The product is a small tablet of dry bleach and competes against all the major liquid bleach suppliers already in this space. 

In two years both products are now available.  The first product is now available in most of the major sporting goods stores in the U.S.  The second product is now in several national grocery store chains and in approximately half of the Wal*Marts in the U.S.

 

 

Acquisition Positions Company #2 in U.S. Marketplace

This company desired to leverage its position in the mass market by entering the dealer direct channel.  However, there was a niche player in the market segment that had gained market share for 15 years at a rate faster than the market was actually growing thru different technology than the company used.

 

We analyzed the niche company, and recognized that the technology could compliment the company, rather than competing with it.  As the niche company was European-owned, it had a bigger impact on the French market than the U.S. market.  We structured an acquisition proposal and approached the corporate owners with the proposition.  Secured anti-trust approval from both the U.S. and U.K.., negotiated a buy-out of the company, and concluded the entire acquisition within five months.

 

As a result, the acquisition positioned the combined brands at #2 in the U.S. marketplace with a growth rate faster than the market as a whole.  It also elevated the company's  position in the E.U. that contributed to a further acquisition in France  the following year.

RPO, Inc..

New Brand leads to Acquisition and a #1 Market Position

In this company's effort to improve market position, it was their thought that acquisitions would be the best approach. 

 

After reviewing and approaching the three key competitors, it was determined that all three either did not want to sell or were not in the desired price range.  Showed the company that none of the three competitors had a recognized consumer brand and all three had failed to establish a solid foothold in the market.  Our suggestion was to develop a new brand and enter the market.  After two years of constant pressure one competitor was presented an offer for acquisition and they accepted.  Kept the created brand and the acquired brand, closed two manufacturing plants and two toll manufacturers, and consolidated corporate offices into the current company structure.

 

Within three years the company achieved the #1 position in the mass market.