Service Businesses
OTHER INDUSTRIES: Construction / Distribution / Manufacturing
$30 Million Industrial Rental, Manufacturing,
and Distribution Business
Two equal partners who had built a profitable enterprise together
over 20 years decided to go their separate ways. Overall, holdings
included three businesses of unequal size and profitability in three
locations. The partners owned real estate in two of the
locations.
G&ZM figured out how to divide this enterprise equitably. The
solution we developed yielded minimum tax effect as well as two
viable businesses, each with good profitability prospects. Today,
both entities are prosperous.
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$15 Million Full-Service Commercial Printer and
Color Separator
This company had just lost $1.9 million on $11.5 million sales,
down from $15 million the previous year. When G&ZM got involved,
we:
- Took over sales management.
- Revised pricing based on variable-contribution criteria.
- Installed capacity-based scheduling.
- Reduced accounts receiveable by $400,000 in two months.
- Negotiated $600,000 in accounts payable into notes payable and
a one-year moratorium on $1.5 million of equipment leases.
These measures increased contribution to profit by $1 million in
just one year. G&ZM also negotiated "no cash outlay"
acquisitions and a structured refinancing and investment strategy
for an investor group, yielding additional capital and business.
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$10 Million Typographer
G&ZM developed a strategic plan for this producer of film for
textbook publishers. We established more formal organization with
clear lines of authority and responsibility as well as financial
reporting to track corporate profitability. In addition, we
developed job-cost accounting to discern profitable projects from
losers.
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$10 Million Environmental Remediation
Contractor
This company sustained more than $1 million in losses. G&ZM
created a strategy to that allowed the client to enter bankruptcy
and emerge as a profitable downsized company.
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$6 Million Environmental Remediation
Contractor
This company was in "loan workout" for six years. G&ZM
developed a strategy to get it out of loan workout and emerge as a
profitable company. We negotiated payout with the bank for 50% of
the amount due. The bank was satisfied because it received more
money than would have been the case had the company got into
bankruptcy and the loan been written off years earlier.
The company was happy, having reasonably satisfied the bank. It
continues in business.
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$4 Million High-Tech Measurement Systems
Manufacturer
Manufacturing process failures crippled the production of a major
new product that represented a substantial amount of sales. Within
five weeks, G&ZM established new process-control practices that
resulted in profitable product yields.
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