Privately held communications engineering & products company Description: Developer of digital products for the cable and satellite communications industry, using contract manufacturers Challenge: Company's revenue had declined from $250 Million to $10 Million during the previous two years resulting in a loss of $12 million during the period. While there was a large cash reserve, a number of shareholders wanted to liquidate the Company. Due to the sales decline and threat of liquidation, morale of vital employees had significantly eroded. Actions: Completed a thorough assessment of the business, evaluating the risks and opportunities of creating a new business plan versus liquidating the Company. Recommended a course of action to allow the company to go forward and return to profitability within four quarters. Results: Provided interim-management, implemented a new business strategy and operating plan, provided leadership and direction for the on-going business, stabilized employee turnover and improved employee morale. Obtained substantial sales commitments to meet first and second quarter revenue forecast. Installed new management team and handed the company over to the new team. Publicly held vertically integrated multi-channel consumer products company Description: Bath and body products, cosmetics and fragrances. The Company developed and manufactured its products through its own manufacturing capabilities and third party contractors. Company marketed its products through company owned retail stores, catalog and website, as well as through wholesale channels. Challenge: Sales volume had dropped from $103 Million to $70 Million during the preceding two-year period and accumulated large losses. The Company had tripled its store count over a three-year period subsequent to an IPO. Three years after the IPO the company filed for bankruptcy protection. A new business plan was required by the creditors committee to justify continued operations. Actions: Completed a thorough assessment of the business, and prepared a new business plan that changed the business strategy and operating structure which provided a basis for the continued operations of the business. Results: The Creditors Committee agreed to the redirection and allowed time for the restructuring efforts. The Company was sold as part of the plan to finalize the Chapter 11 process. Publicly held men and women's private label apparel retailer Description: The Company's revenue had fallen significantly ($146M to $90M in three years), although store count had increased by 40% through an acquisition. Challenge: Company had operating in Chapter 11 for six months and had failed to prepare a plan of reorganization. Actions: Completed a thorough assessment of the business, and prepared and implemented a plan of reorganization. Results: Managed the Company's Chapter 11 process including negotiating its reorganization plan and emergence from Chapter 11. Successfully raised $30,000,000 in new equity investment and bank financing as well as obtaining a substantial Federal Income Tax refund utilizing a little known feature in the tax code. Publicly held specialty apparel retail chain Description: Private label apparel with over 50% of the product manufactured in Asia. The Company had embarked on a rapid expansion program increasing the store count by 50% over a three-year period and reaching revenue of $250M. Challenge: Sales had declined by 25% during the previous year and the Company was forced to file for bankruptcy protection. The business had to be stabilized, creditors confidence restored and an acceptable plan of reorganization prepared. Unsecured Creditor claims amounted to approximately $60 Million. Actions: Worked with Creditors and Vendors to restore confidence, prepared alternatives for a plan of reorganization. Managed the financial and related operations of the business. Results: A Plan of Reorganization was approved and the company successfully emerged from Chapter 11. Subsequent to the reorganization, the company experienced two consecutive years of more than 6% pretax profits. Creditors from the bankruptcy proceeding received a return in excess of their claim value and pre-petition equity holders realized value from their holdings. Privately held early stage communications company Description: Company formed by a consortium of competitors to develop the standards for high-definition radio for the AM and FM broadcast bands Challenge: Build consensus on the direction and strategy for the company. Actions: Restructured the limited partnership, changing general partners. Brought in Lucent as a joint technical development partner. Set the stage for additional investments from other broadcasters and venture capital firms. Set the stage for approval as a standard at the FCC through a petition for rulemaking. Results: Additional investors came in. Product is now close to launch. Major daily newspaper Description: Second newspaper in a major metropolitan area. Challenge: Circulation was falling and was controlled by the rival regional newspaper Actions: Helped design new information system for circulation. Reviewed operations of the Circulation Department and suggested changes. Results: The paper took control of its own customer base and increased circulation. Publicly held consumer products technology company Description: Developer of VCR+ Instant Programmer Challenge: Develop an effective way to profitably market the concept beyond the initial product offering. Actions: Created and implemented worldwide strategy to entice newspapers and television guides to publish VCR PlusCodes that created consumer demand for the technology. Responding to that consumer demand, manufacturer's agreed to pay a licensing fee for the technology. Results: The Company grew to a valuation of multiple billion dollars and eventually purchased TV Guide from Rupert Murdoch. Currently the world's leading provider of Electronic Program Guides. Venture-backed enterprise software company Description: A software and services company in digital signature technology that had not been able to generate new revenue. Challenge: To substantially increase the company's revenue, determine and execute a viable exit strategy thereby avoiding a write off for the investors. Actions: Hired new sales team that generated $10 million in new contracts from banks and Fortune 500 companies. Reduced operating expenses and improved margins. Identified potential merger partners and arranged new funding for a merger. Results: The Company established positive revenue growth that provided the basis for acquisition by a strategic partner and created value for the investors. Privately held technology company acquired by buyout fund Description: Supplier of computer simulation systems that encountered a revenue decline of 67% over a two-year period. Challenge: Restore revenue growth, improve the business operations and move the company toward profitability. Venture capital financing was required to fund the revitalization. Actions: Determined that the company was pursuing a non-existent market. Guided the company into new markets. Raised $40 million in venture capital, acquired five companies, domestic and international. Developed three new product lines. Results: The revenue growth was re-established and over a four- year basis increased sixteen-fold base while providing the basis for continued growth following the turnaround. Enterprise software company Description: A publicly held high technology supplier of software development tools where revenue had not met expectations. The company had run out of money and was in the process of declaring bankruptcy. Challenge: Avoid bankruptcy, generate revenue, raise appropriate funding and reposition the company for growth. Actions: Negotiated a "standstill" agreement with creditors. Arranged for bridge financing from small investment group through a PIPE. Developed new sales and marketing model, generated revenue growth, raised $11 million in public financing, and up-graded company to NASDAQ. Results: Revenue increased and continued to grow following turnaround. Company was recently sold to Borland International. |