For many years, a small, family-owned electronics manufacturing firm had failed to show any revenue growth. The new owner wanted advice on what to do.
Griffioen Consulting was hired to assess the business and advise the next generation owner of the best options available for the firm.
After a comprehensive analysis of the company’s financials, technology, products, and management, and in close collaboration with the owner, the decision was made to bring in a turnaround CEO.
The turnaround CEO initially hired was able to improve the viability of the business to some extent, but profits were still below expectations. At that time, Griffioen Consulting was asked to take over the role of interim CEO.
A thorough review of the cost structure revealed that several elements of the manufacturing costs were not properly recorded. As a result, the pricing structure was incorrect, resulting in inadequate margins.
A process for calculating the true manufacturing cost was developed and a new pricing structure established. Customers were notified about the new pricing structure and all accepted the new pricing.
In addition, Accounts Receivable processes were improved to speed up collections.
The improved margins resulted in the company becoming cash flow positive achieving profitability within a few months. The company viability had been restored.
With the turnaround assignment completed, the CEO role was transferred to the new owner.Back to Case Studies