• A public, $200m global services company acquired a new estate of products that resulted in a 55% increase in its installed base. These solutions required a combination of on site and remote service to ensure maximum Reliability and Uptime to some of the largest retailers in the world. Management’s attention was diverted because it did not anticipate the magnitude of infrastructure and systems required; and both the acquired estate and the core business suffered. Efforts to work through or around problems added significant complexity to the conduct of the business. Within several months of the acquisition, the Company was faced with a declining installed base, margin compression in the industry and skyrocketing SG&A Costs. Beesley provided a different and clearer lens to see the issues, and we dissected the Companies product offering by region and product to determine the direct contribution by segment, before allocation of corporate level SG&A and SOX costs. A plan was implemented to divest non-performing segments and operate remaining product line units with a small flexible management team operating a variable cost model. Through the divestiture of assets and reduction in force in the remaining product lines, the Company was able to pay off the acquisition debt, acquire a small competitor and is still operating.

• A private, nonprofit enterprise providing a comprehensive network of mental health services, had been operating at a deficit for several years, and was placed on “conditional” status by the State. Working with the management team, Beesley determined what level of personnel was needed to support programs and comply with all regulatory and financial reporting requirements, and what utilization levels were optimal in each of the residential units to return the Agency to profitability. A Forbearance Agreement was negotiated with the Bank and Beesley joined management in discussions with representatives of the State. The Agency is now operating at a surplus; “conditional” status released; vendors brought within terms; the Bank paid out; and new contracts have been awarded.

• A private $80m solid wood furniture manufacturer lost $2.5m in A/R and $12m in revenue when their largest customer filed for Chapter 11 protection. The Company was already experiencing top-line pressure resulting from increased competition offshore and cost pressurefrom deteriorating grades of lumber, manufacturing inefficiencies and a tight labor market demanding higher wages. Beesley determined the cash needs of the Company and developed formal executive level reports to measure key indicators for the business and developed an action plan to restore liquidity. With our guidance, headcount was reduced by 200 people, while increasing productivity by 25%, and reducing inventory by $3m. Within one year, the customer base was expanded sales grew by 12%, despite the loss of its two major customers. The Company returned to profitability and within two years of the initial engagement enjoyed an 8% EBITDA. Ongoing involvement by Beesley led to implementation of a new ERP system and additional plant consolidations, allowing the Company to remain flexible in uncertain market conditions.

• A $200m center of the plate food distributor, serving primarily rural areas, made changes to its sales and distribution from a delivery model to a pre-sales model. The company had been experiencing heavy turnover with delivery personnel who were responsible for selling, distribution and collections. The company added 85 outside salesman, assuming that they would increase both volume and gross profit. What they did not anticipate was that this “one size fits all” solution would not work with all customers. Sales and margins remained flat and they lost control of profitability and cash flow during the transition. Beesley successfully orchestrated an action plan to redesign financial and sales reporting systems, develop a simple to use daily cash flow system and aided in the presentation of a sensible business plan to investors, bankers and vendors. Beesley also revamped the entire front-end and logistics system to accommodate all customer types and maximize routing efficiencies. The Company returned to profitability and was able to refinance on more favorable terms.

• A €95m publicly held consumer products company in Germany was technically insolvent.  The investor group had hired a large, well known consulting firm based in Europe to prepare the investment thesis, and restructure the operations.  The Company did not have the human resources, culture or financial capital to execute the plan, and a significant amount of resources were dedicated to a new product launch which could not be funded. To avoid insolvency, investors lent enough cash to quiet the trade. Rob Calhoun  was appointed Chief Restructuring Officer and became a member of the management board.  Beesley negotiated out of a very onerous license, realigned the management team and returned the focus to the core business.  We also reduced the number of SKU's, dropped unprofitable accounts and territories, reduced inventories, and returned to cash flow break-even for the first time in at least three years.  The turnaround plan was funded by selling non-core assets and the Company is operating profitably today.

 

• A €125 million privately held manufacturer and world-wide distributor of collector’s items in Germany was experiencing significant delays in delivering product and continually revising their plan downward.  The investor group had retained a well known consulting firm in Europe to develop the business plan and investment thesis, and after the acquisition, to manage the turnaround plan.  The plan assumed that management and their dealers could grow sales through additional product introductions, product line extensions, and development of a toy line using the same brand.  They assumed that they could expand margins through a rationalization of manufacturing in Europe, and increased sourcing in Asia.  The Company did not have the resources or the culture to execute this plan. New product introductions choked engineering, delayed manufacturing and confused the dealers and customers.  Cost of goods sold increased dramatically since parts, components, and finished goods had to be expedited by air from Asia.  Dealers missed sales due to late shipments and competition from different channels which ultimately weakened dealer loyalty.  The original consulting firm attempted to reduce inventory and accounts receivable to collect on a "success fee.", which further exacerbated problems at the dealer level.  Working with management Beesley developed a complete operational restructuring plan of reducing SKU's, limiting distribution, and simplifying supply chain management.  Working with the Board of Directors, we helped identify and retain a new executive management team. 

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“You enjoy their company whilst they are assisting you. Considering how difficult situations can be, [the stress and surrounding problems], this is a unique quality”

“Beesley knows what the financial instution’s reaction will be”

We provide an alternative to the larger turnaround consulting firms by offering a very different business model.  All Beesley Associates have experience in general management, and consulting.  We work with company officers, directors and employees where appropriate to evaluate talent, reduce cost, and develop action items required for immediate implementation of profit and balance sheet improvement plans. This method expedites the knowledge transfer of sound business principles to the company to ensure continuity, and minimizes consulting fees.