Whether it is the result of long term mismanagement, a failed strategy or an external cause
Whether it is the result of long term mismanagement, a failed strategy or an external cause, the owners of a fundamentally sound business can find themselves on the brink of insolvency. Turning that business around requires clear insight into the value to be preserved, decisive action and the ability to make tough decisions. Most often, this requires an experienced outside professional with the unique skill set and necessary objectivity.
Whether it is the result of mergers and acquisitions that created redundant functions or facilities; or due to the business changing over time
Whether it is the result of mergers and acquisitions that created redundant functions or facilities; or due to the business changing over time resulting in resources that are no longer needed, there are situations in which the business must be fundamentally restructured. Often, such a restructuring is mandated by lenders or investors who have lost confidence in management. The outside expert brought in must lead the necessary change in a manner that bridges the gap between management and the financiers, and helps re-establish an effective working relationship between them.
Often when a manufacturing business is consistently underperforming and replacing key managers has not made a difference
Often when a manufacturing business is consistently underperforming and replacing key managers has not made a difference; or there is a belief that making an enormous investment in technology will make the difference, the real problem is poorly conceived or poorly executed core processes that cut across all of the functional silos of the business. An outside expert is needed with the knowledge and experience to evaluate and design the process changes, and direct the radical changes
The sudden, unexpected loss of a key leader can be devastating for a business
The sudden, unexpected loss of a key leader can be devastating for a business. And having to replace that executive under great time pressure often leads to having to settle for a good executive who happens to be available, rather than the ideal person to drive the business. A highly experienced and capable interim executive can keep the business driving forward, buying time needed for the owners to identify the best leader for the long term.
Due Diligence Support
Manufacturing businesses compete and either succeed or fail on the basis of factors beyond simply cost and price
Manufacturing businesses compete and either succeed or fail on the basis of factors beyond simply cost and price. Sales volumes are often hugely impacted by delivery times and performance; quality is a major driver; and financial results are heavily impacted by capacity utilization and the degree to which factories can be level loaded. Too often, the due diligence effort in an acquisition is performed by people who do not fully understand the non-financial drivers of performance that determine the real value of the business. Whether it is a potential buyer seeking to avoid over-paying for the business; or a potential seller looking to assure that the real value of the business is recognized, engaging an outside expert who understands the core manufacturing drivers of a company’s value to support the due diligence effort makes sense.