Structuring a Successful Turnaround
Analysis Group worked with a struggling HVAC and refrigerant services company to develop and implement a turnaround plan. Prior growth initiatives had failed to achieve targets, and cash flow was negative. The firm's capacity to tap the equity and debt markets was severely limited, and management needed to improve cash flow and profitability quickly. Our strategy team worked with senior management and the board of directors to identify and help implement restructuring alternatives. Analysis Group recommended a series of immediate actions, including cost reductions, distribution changes, exiting of unpromising business lines, and improved cash management. The client's business stabilized over the ensuing months and eventually returned to profitability while avoiding a bankruptcy filing.