Retail case study | Retail Solutions Provider Company
Retail case study Overview
This 50+ year old OEM enjoyed a nationwide footprint and a long history with major industry customers.
A new executive management team had made business decisions that resulted in a swing from profitability to a significant loss.
Exit Your Way Advisors were approached to manage the turn-around of the business.
Situation
·EYW Advisors and the owners aggressively pursued key objectives to eliminate waste and inefficiencies in the business and return the company to profitability.
·EYW Advisors lead the efforts to streamline the business operations, redesign product lines and facilities to reduce product costs while increasing the production efficiency to allow market leading customization and delivery.
·EYW Advisors and the owners rebuilt the management team to facilitate successfully operating the business.
Short-term results
By the end of the first year the business was back to the profitability prior to the executive team changes. (200% improvement)
The business process and redesign efforts reduced order processing time by over 60%, manufacturing space requirements by 50%, while reducing the cost of products by over 20%.
The company was successfully sold to a strategic buyer.
The owner received a ROI of over 16X on the work.
Objective
Return business to profitability and sell business for maximum value
This is what we've achieved
These changes allowed the company to complete an industry leading project which more than doubled revenues in less than 180 days and quadruple profits over previous records. The company also secured several large contracts with rapidly expanding retailers and extended long term contracts with large existing customers with higher margins due to the redesigned products and facilities.
Business Description:
Retail Solutions Provider
Objectives:
Return business to profitability and sell business for maximum value
Timeline:
3 years
Retail case study Summary
This 50+ year old OEM enjoyed a nationwide footprint and a long history with several key industry customers.
The ownership appointed a new executive management team to operate the business. In about 18 months the new executive team made a series of bad business decisions which caused the company to swing from profitability to a significant loss.
EYW was approached by the ownership to manage the turn-around of the business.
EYW and the owners aggressively pursued key objectives to eliminate waste and inefficiencies in the business.
Once the business was operating profitably, EYW staff lead the efforts to redesign product lines and facilities to reduce product costs, increase the production efficiency and allow market leading customization and delivery.
In the end, this is what we got
The business was cash positive in less than 6 months. By the end of the first year the business was back to the profitability prior to the executive team changes.
In the second year the company completed an industry leading $30+ million project in less than 180 days which helped the company quadruple the profits over previous records.
In the 3rd year the company secured several large contracts with rapidly expanding customers and extended long term contracts with existing customers at higher margins due to the redesigned products and facilities.
The company was sold at the end of the 3rd year to a strategic buyer for over 5X the original business value.
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