Construction Services & Products
Amid rapid revenue growth, debt skyrocketed. The business owner was extremely anxious because he was not meeting the loan covenants. The bank started the process to call the loan. $65M revenue, $0.8M losses & $15M debt
paid down in 90 days. The business refinanced and turned profitable.
The Findings
Debt was $5M higher than necessary due to process inefficiencies
Product/service mix degraded profitability.
Sales team incentives caused losses.
More suitable loan terms were available.
Actions Taken
Changes to policy, process, and personnel accelerated cash conversion to industry average.
Rebalancing the offering mix boosted profitability.
Aligning sales incentives increased net profit.
Negotiated loan extension with existing lender.
Secured a new lender with more attractive terms.
I didn’t realize how close we were to bankruptcy, and how just a few changes could turn this around.”
Guide the Process and Solve Problems
A weekly, executive-level decision mechanism to guide the process and solve problems as they arise.
