Financial, Operational & Strategic Advice / Receivership
A once successful ceramics manufacturer ran into hard times. They had maximized their credit line and had run out of cash. With no accounting system in place and their accounting records in complete disarray, they reached out to BIG for help.
This project began with a Business Check-Up Analysis. This Analysis allowed BIG to identify problem areas in the manufacturer’s financial management processes. From there, BIG was able to institute a proper accounting system, complete with policies and workflow procedures. BIG also developed and implemented a cost accounting methodology so that the owners could thoroughly understand the actual costs related to manufacturing each product, and performed a segmentation analysis to help them identify their most profitable products and customer bases. Among those clients that were less profitable, the company was aided in implementing a price increase strategy.
In addition, BIG re-engineered the company’s manufacturing process, reducing production delivery time from six months to one month and effectively increasing cash flow. This also helped the company to eliminate waste, reduce inventory levels, and increase recovery rates.
The Bottom Line:
Within 5 months, BIG helped turn this ceramics manufacturer around, transforming them back into a profitable company. Additionally, in the role of Receiver, BIG operated the company for a time, continuing to increase its value, and thereby maximizing the amount of money the manufacturer was eventually sold for.