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Case Study: Interim ManagementStonegate was retained to provide interim management to a $75 million consumer products company. The company had lost over $18 MM in the 2 years prior to Stonegate’s arrival. The company had, in the year prior to Stonegate, terminated the family member who had been CEO and had determined that the workout firm currently running the company was not doing a satisfactory job. Stonegate was asked to provide, on an interim basis, a President and Chief Executive Officer, a Chief Operating Officer, and a Chief Financial Officer.
The Company was in both financial and operational disarray when Stonegate was retained. The company’s lender had declared a default and was in the process of foreclosing on the company’s assets. Financial losses were staggering, cash flows were sharply negative, sales had stagnated, new product introductions had disappeared, few new customers had been secured, employee morale was low, and management talent was inadequate.
In the first 6 months, Stonegate accomplished the following:
Subsequently, over the first 15 months, Stonegate also achieved the following:
Through Stonegate’s efforts, the company was brought to the point of commercial and financial viability in less than 18 months, starting at a point of being within 60 days of liquidation.
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