Turn-around of Operating Subsidiary Company
A $10MM subsidiary of a German manufacturer making and distributing printing equipment for the graphic arts and packaging industries was losing money. The company was machining many of its own parts and had excess inventory, there were management conflicts, and an unproductive sales force. The company had been generating losses for several years.
As interim CEO, made a full assessment of the business and developed an operating plan to become profitable. Operations were restructured and machining of parts discontinued. Parts were outsourced and excess inventory was either sold or discarded. Overhead costs were reduced, management conflicts were resolved and sales and marketing streamlined. The company returned to profitability in the first year, hired a permanent CEO, and continues to sustain profitable operations.