Case History#2
 
The Company A computer reseller dealing in a niche market. Rapidly advancing technology and generally declining prices caused the company’s margins to shrink drastically.
The Problem Although sales were good, revenues were not supporting the company. Much of the financing was being done involuntarily by suppliers. One of the major lenders was owed more than $3,000,000 and was about to call the loan. Management of the company began looking for replacement capital. However, because of the company’s financial condition, the more obvious sources of new funds were not available.
The Solution Corporate Strategies surveyed the company’s situation and suggested that outside capital would not be the best answer, even if it were possible. Because of the entrepreneurial management and a lack of operational focus, systems throughout the company were inefficient and ineffective. We worked with management to refine the warehousing, administrative and service functions, negotiated with the major lender and other creditors, and provided sales and management training to the company’s employees.
The Result The breakeven point was reduced by 40%, and the lender forgave more than half the debt. At the end of the engagement, the improved systems were continuing to make the company more profitable.
 
Case History#1 Case History#2 Case History#3 Case History#4 Case History#5
 
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