Success Stories – Manufacturer #1

We met this manufacturer after they had reported a $400K loss the previous year and had negative retained earnings. The company was closely held and had grown over 40+ years and a second generation to $10M+ revenues with about 50 employees.

Following the great recession and several difficult projects, the company was in a challenging position with their bank.

Oak Hill identified the following issues in the business and went to work:

  • Not using the proper GAAP accounting
  • No formal process or accountability for Project Managers
  • Debt structure of company not aligned with growth
  • Several team members holding back the rest of the team
  • No exit strategy for owners

This resulted in the following solutions:

  • Implemented percentage of completion accounting so we could track profitability during projects; this included training for current staff
  • Designed and implemented project management process including monthly project review meetings to shed light on issues and implement necessary changes prior to project completion
  • Provided training to project managers to enhance their skills and get them comfortable with the new process
  • At customer’s request, interviewed and selected new bank for relationship with client and used this change to restructure debt
  • Worked with team members to help them adapt to new strategy and align with values; several employees improved performance and became productive team members; a couple elected to leave
  • Designed and implemented an exit strategy that has enhanced company value and allowed owners to step back from day-to-day operations and prepare for a transition

Results:

  • Great banking relationship for company
  • Sales and profitability growth
  • Owners freeing up from day-to-day operations
  • Company positioned for near-term transition