industry
Manufacturing

Operating as CRO & COO during a major manufacturing company’s turnaround​

Key metrics:
  • Increased sales by 35% YOY
  • Significant EBITDA improvements
  • Generated cash flow increase​​
Value levers pulled:
  • Interim CRO
  • Interim COO
  • Operational improvement
  • Cost reduction
  • Performance improvement

Picture this...

You’re a global manufacturing company that supplies cash processing equipment to the finance industry, primarily to bank and credit union retail branches, with a U.S. global headquarters and manufacturing, R&D, and engineering operations in Italy. In the face of declining sales, failed new product offerings, and an inflexible fixed operating structure, you arrive at a juncture where you’re unable to meet your debt service obligations.​

You turn to Accordion.

Engaged initially as CRO, we perform a business plan assessment and lead a rigorous evaluation of the profitability and viability of your product offerings and R&D initiatives, the results of which demonstrate the need to abandon unprofitable and unproven lines of business as well as focus on core selling markets. We:

  • Help right-size operations, including a significant reduction of fixed costs supporting R&D and engineering initiatives, and expand our role to interim COO.
  • Work with management and foreign counsel to successfully navigate negotiations with various Italian unions and arrive at an agreeable resolution for all parties involved.
  • Design and successfully negotiate a creative labor solution that protects key engineering and R&D talent, while also resulting in the labor cost reductions required to make your business viable.
  • Recruit new senior management including Chief Commercial Officer, Chief Financial Officer, EVP Global Manufacturing and Supply Chain, and Chief Technology Officer.

Your value is enhanced.

The renewed focus on core selling markets and key management changes leads to a rebound in sales, with the first seven months outpacing YOY results by +35%, reversing a 3-year downtrend in revenues. Combined with the reorganized cost structure, you experience significant EBITDA margin improvements and can generate the cash flow necessary to meet principal and interest obligations without requiring additional permanent capital.

Enhanced value:

You reap multiple benefits, including:

  • Increased sales by 35% YOY
  • Significant EBITDA improvements
  • Generated cash flow increase​​​