Heaton Consulting Group
Turn around case study
Situation
Small specialty adhesive company and contract manufacturer had not been profitable for 18 months, excellent technology but no sales force, Marketing or distribution. The management team had no idea how to turn the company around. The lead investor realized it needed am executive with sales, marketing and operations experience to lead the team and successful turnaround the business around or close it down in 90 days. They reached out to Jim Heaton for support as President.
Jim’s background in turnarounds of troubled company’s and integrations was a perfect fit for the company’s current growth spurt. His track record of turn-arounds with zero company enabled him to jump into solving the issues immediately.
Solution
The project was focused on reducing costs, increasing sales through distribution:
Streamlined work flow and establishing a WIP program further reduced GOGS
Renegotiated pricing with the largest contract manufacture
Establishing a technical service group and direct sales results
Results
The company experienced a rapid change initiative under Jim’s leadership.
75% growth organic product sales.
20% growth in contract manufacturing revenue
Net profits approaching 20%
Identified and trained internal manager to replace Jim when he left
Jim personally sold the company for 1 times sales 2.5 years after start the turnaround.
