Business Check Up / Turn Around

Challenge:

The company’s owners had no set procedure to determine operating costs and the business was struggling to manage payments on their credit lines. They needed to improve operations, increase cash flow, eliminate debt, and reduce their scrap percentage.

BIG Actions:

The first step BIG took was to conduct a proprietary Business Check-Up Analysis. During the Analysis it was discovered the owners had no process in place to estimate their operating costs. BIG worked with them to re-engineer their inventory process and develop reliable tracking and valuation systems. Teaming with an investment banker, BIG then calculated financial projections and performed due diligence testing to assist them in evaluating the business opportunity.

The company also needed to identify which areas were increasing their scrap percentage. By identifying and correcting this problem they were able to increase cash flow and pay down their credit lines within six months. Lastly, BIG performed an in-depth review of their processes by product and cost in an effort to identify the most profitable metals. With new streamlined operations in place, the company was able to re-focus its efforts on customers and commodities that represented higher profitability.

The Bottom Line:

By developing and implementing a valuable and structured action plan, BIG helped this company to improve their efficiency and operations, thereby increasing cash flow and reducing debt, in addition to educating the owners on how to identify and manage operating costs going forward.