Case Studies
A sampling of conditions PTCFO, Inc. has solved
Click here to see a sample of results
Condition:
CEO of a growing company is nearing retirement. The management team is not deep or ready to take over. There are no family members active in the company, and there is talk of selling to an ESOP. We assessed the organization with a SWOT analysis and long term financial forecasts to position the management team for the buy-out. In addition, we assisted the organization with team building, process mapping, and value stream mapping systems. Additionally, the owner began to develop a board of directors, using the advisory board process to eventually convert to a governing board.Condition:
CEO of family or privately held business is planning for retirement, but is concerned with how the business will be managed after he/she reduces time at the office. Management, which sometimes includes family members, are frustrated that the CEO hasn't given up "the steering wheel" and allow a smooth transition from one management generation to the next. Our approach is to develop systems to satisfy communication and strategic issues. In most cases an Advisory Board with outsiders is implemented. An ESOP or Employee Stock Ownership Plan, along with management development programs, can provide the current ownership with a very smooth process of ownership and management succession with highly favorable tax benefits.Condition:
Inc Magazine 100 CEO wants to buy out minority shareholders, and attract additional long term and working capital financing. We developed a serices of financial models to provide the business valuation expert to arrive at a value for the buy out, and to present those models to funding sources. We closed the buyout and attracted over $1.5 million for the company.Condition:
CEO wants to develop the next generation of management, but is concerned with how the process will work with issues of family or key managers affecting the decision. In some cases, the CEO wonders if his/her offspring are ready to take over, or is an outside manager a better fit until they are ready. The CEO may be concerned with keeping a certain or select group of managers, wanting to provide compensation programs to create incentives, and long term rewards. We are asked to work closely with the next generation to deal with several strategic projects. They learn how to work together, and the next generation develops skills to manage the business in the future.Condition:
Management team or partnership is trying to figure out the direction of the company. There are so many opportunities, with limited cash, that determining the best approach is a challenge. They started the business "in a garage" and have grown it well. They know their customers, they know what they do well. Working long hours needs to change as their families want more of their time. They do not have a well written business plan, but they do know it in their head. They are close to making money or are doing very well. They want to know if they should fund the growth with a VC or go to a bank and borrow. Or should they grow gradually using the profits? We have worked with technology companies to develop action plans and business plans that have resulted in sales growth without the family sacrifices. In other industries, we have developed detailed business models for "what if" scenarios; providing insight to selected strategies and opportunities.Condition:
The CEO/Partners have done their homework. Their startup is not really a startup anymore as they have tested the waters, done their research, and have identified several customers who have bought their products and services. The real test now is developing a plan that scales the business with high growth. They need someone who will guide them through the details, put their thoughts into income statements, balance sheets and cashflow models. We have helped raise millions of dollars for our clients in seed and debt financing using our trademarked templates called "Strategic Snapshot".Condition:
Business has been growing rapidly. The CEO's short temper is caused by frustration with his management team, who are working very hard but not getting enough done. Profitability is lower than before, and there is disagreement on where to grow the company. Several key employees have resigned, there is anger among family and non-family members, and the morale within the company is lower than before. We help the management team work as a team, rebuild customer satisfaction, and encourage entrepreneurial spirit in the organization. In some cases, we mentor youthful future owners to achieve high levels of Entrepreneurial skills as well as a results oriented style.Condition:
Costs are rising, margins are thinning, and there are disagreements with changing the way things are being done. One department is fighting with another. The amount of errors is causing a high amount of returns, rework, scrap, and bloated inventory. We have helped companies figure out their costs, develop profitability by customer or product, create action plans that improve cycle times, reduce mistakes, and reduce inter-departmental conflict.Condition:
The Owners of an unprofitable business want to position the company for a Sale. They are concerned with how a high value can be attained while having family members in the management team. Usually, a strategic plan will enable long term non family managers to stay on as well as family members, as the company increases the Sale Value. In some client projects, the selection of a new non family GM take place, providing new leadership and direction. In others, the family members remain, but in different, more effective positions.Condition:
A formerly profitable business has turned unprofitable due to competition and difficult market conditions. Margins are dropping, key employees have left, sales are down, and the vendors are wanting faster payment. The bank is concerned and wants more information faster. Some family and non family members are viewed as not bringing value to the firm anymore. Action is require immediately, to stem the losses and reinvigorate the management team. We are asked to help rebuild the company and management team, work through the banking issues, and reposition the company for profitability and growth. Our experience in various industries and market conditions have allowed us to achieve reasonable expectations without challenging the owners' ethical issues to change and restructuring.Condition:
The owners continually argue with each other over how the business is to be run. One, the marketing manager wants to expand the market as well as provide improved customer service. The second, an operations/financial person, is concerned that the profits are not there to support the growth. Another wants a new computer to get inventories under control and give timelier management information to reduce costs. These conflicts show up in management meetings, causing staff problems and concerns. We are asked to stop this conflict and provide insight for new directions. We help develop a Strategic Plan that will allow for new growth and opportunities for all concerned. We also implement team concepts to improve mentoring, learning and problem-solving abilities.Condition:
The Children of the Owners are at odds with their parents in what direction the company should go. Sales have been fairly flat for the past few years, or the company is at a strategic crossroad, where critical decisions are needed. The parents appear unreasonable, risk adverse, and unwilling to try new things. The Owners are frustrated that the Next Generation has no appreciation for the knowledge and experience they have, and they feel the children have no understanding on making a profit. The Children resent the parents meddling in business details, and are frustrated that the company has gone nowhere in several years. We are asked to help the company and its team begin to grow again. Our approach is to balance the needs of the business with business solutions, such as boards of advisors , and the needs of the family with family-oriented systems such as family councils. We focus on tailoring the needs with appropriate systems.Condition:
A Nationally Ranked company is struggling to grow sales and profitability. Over the prior years, management has gone through several COO's as high growth affected leadership. The CEO is looking for help in mentoring his new COO so that the company can get back on track. The Organization is in need of new IT systems, team systems, and new approaches, as well as growth strategies. There are several family members working in the company, none working in senior management. We work closely with the CEO & his/her management team to develop strategic action plans, including vision and mission statements, that increase marketshare and profitability.Condition:
The owners are children of the founder, and are taking over management since their father became severely disabled or passed away. The Sisters, early in their careers, were not allowed or encouraged to work in the business by their father, and due to his problems, began trying to manage a business they have little knowledge of. As Time went on, power plays between the sisters and their brother (who lived far away), resulted in loss of sales, employee theft & defection, and financial losses. The new owners wanted to turn the business around with a management team that will grow the business profitably. They were seeking advise on how to manage the firm. We were hired to rebuild the franchise and develop a management team who could manage the business while the owners were not actively involved until the next generation was ready. The results include sales increases exceeding 10% and net profit exceeding two full percentage points.
Results: The list below represents only a small sampling of the over 100 clients we have served since 1989. Our purpose is to show that our work is lasting, even long after we are gone.
- We are hired to develop a succession plan for a $165 million ESOP auto dealer. We developed a plan to develop empowered teams to build process maps, develop leadership tracks, and identify the top issues to solve. The purpose was to identify the next leader/president who will drive the company to new levels of growth, while sustaining profitability and employee retention.
- A $25 million company whose bank refused to loan any more money to, is now a $40 million company with excellent profits and several locations, the owners/managers are still there. Initial Layoffs due to location closings has now resulted to over 7 acquisitions in last 7 years.
- A $4 million company on the edge of bankruptcy with millions in losses is now an $8 million company with excellent profitability. The owners/managers are still there. No Layoffs.
- A $20 million company with flat sales and inconsistent profitability is now a $40 million company with profits consistently jumping to an overall growth of 350%. The managers are still there. No Layoffs.
- A $80 million company had just shrunk from $100 million with lots of turnover and little profitability is now a $140 million company with improved profitability. Owners/managers are still there. No layoffs.
- A $14 million conglomerate of diverse businesses in a rural location is repositioned and divested at multiples of 100% over the initial valuations and offers. No layoffs.
- A $13 million manufacturer with no sales growth or new products has now developed 5 new products, have patents filed for 3 others, and is now expanding internationally and nationally. Owners/Managers are still there. No layoffs.
- A $2.5 million manufacturer loses its COO and its top people, who then begin to compete with company. We entered into the company and within 12 months, hired replacements for the company, shored up the banking relationships, and repositioned the company to survive with the competitive pressure and lost customers. Company has regained sales and is now an INC Magazine Inner City 100 company. Sales are now reaching $4 million.
- A Fortune 50 company hires us to develop new markets resulting in sales from near $-0- to nearly $25 million in two years. Company was acquired.
