Case Study # 1
Situation
An engineering and manufacturing firm, operating for more than 30 years, faces an owner transition, coupled with a downturn of its largest revenue producing market sector.
Strategy & Recommendations
EWBC identified and navigated through five key components, assisting in the CEO’s management of short term issues while refocusing the organization to position themselves for a market upturn.
- Strategic management of short term financial flows, organization structure and personnel resources
- Expanded Market Diversification
- Development of a detailed project management workflow
- Development of a contract delivery and cost tracking system, providing a progressive building of information from proposal through to budget vs actual comparisons
- Development of a detailed plan for turn-around and communications with financing partners
Outcome
The firm is now poised for success. Having overcome the market downturn, the financial position of the company has improved dramatically over the last 18 months. Revenue is up and the company is more diversified. New employees are being hired. They are now working toward achieving a projected revenue of more than $15 Million by 2020.
Case Study # 2
Situation
The owner of a successful professional services practice has built a broad service structure with 30 employees and 30,000 square feet of commercial real estate. Before making the leap to purchase additional real estate space for expansion purposes, the owner sought the advice of EWBC.
Strategy & Recommendations
EWBC advised the business owner to take a step back and look at the business from a strategic point of view –its current state and his long-term goal – in order to realize the value of his practice and exiting. We analyzed the current sources of margin and profit in the business in order to determine:
- Where the company makes money
- Where it gets its return
- What capital investments may be needed
- Who and what are the critical human resources needs.
We conducted a financial review, market analysis, real estate review and interviews with key personnel. We also took into consideration the financial security that the owner derives from the business and how that affects his overall financial situation, both now… and after he transitions out of the business.
Outcome
The practice now has a clear mission, strategic vision and business plan, providing an actionable roadmap to the owner’s longer-term objective. EWBC helped him determine that while the space would accommodate his growing practice, it did not align with his long-term goal of retiring in ten years. His focus now is on effectively growing the practice with an eye on positioning it so that the value of the business continues through an exit transition. The transition plan includes targeting key successor management for recruiting and retention. Additionally, the owner avoided a multi-million-dollar real estate expenditure that would have extended his time in the practice, and ultimately would have made his retirement goal unattainable.
Case Study # 3
Situation
A family owned services organization founded in the 1990’s has positioned itself as a niche player in its field and its owners are seeking a tentative exit plan. The founding owner is in his 70’s and ready to retire while the second generation has limited years interest in running the company. The firm’s fifty employees support a quality service reputation in an industry that is rapidly changing.
Strategy & Recommendations
EWBC assisted the owner / management team in analyzing the competitive market allowing them to better position themselves for mergers and acquisitions.
- Strategic Understanding of the Competitive Environment
- Who is growing? How are they growing? How are the service offerings changing?
- Self – Assessment of their Competitive Positioning
Outcome
The organization is now operating with a clear strategic road map to grow the value of the company and position itself for an exit.
EWBC assisted in the outlining of the firm’s sources of value for exploring regarding industry consolidation. The organization has now been able to define areas for investment and growth including expanded software and service offerings into related activities.
