Role: Turnaround Consultant

Client: Private Owner

Business Description: Regional Conference Center (Southeastern Michigan)

Critical Issues:

  • Negative cash flow
  • Significant negative net worth
  • Negative working capital
  • High operating cost
  • Defaulted debt
  • No budget concepts
  • No strategic goals/plans
  • Shoot from the hip crisis management

Resolution:

  • Identified and stopped cash burn
  • Negotiated with creditors to reduce debt by 50%
  • Reconfigured accounting system and records to gain an accurate view
  • Liquidated non-earning assets
  • Replaced old equip. with new equip. which reduced maintenance Costs and increased sales volume
  • Improved pricing model
  • Gross revenues up by 10%, Cost were down significantly, good positive cash flow and growth, positive and growing net worth.

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