Company:$30 million reseller of specialty trucks – new, used and parts.
The Company, which was family owned and managed, purchased used garbage trucks for refurbishment and resale or break up and parts sales. Continued operating losses had resulted in the Company being in default with its lender, with the latter requesting that the Company engage the services of a turnaround professional.
At the direction of the lender, Focus assumed the role of interim CEO, with a view to stemming operating losses, reducing costs and generating positive cash flow.
- Focus quickly identified that poor communication and opposing viewpoints within the family management team was at the root of many of the Company’s problems.
- By assuming day-to-day operation control, Focus quickly moved to eliminate excess headcount, sell off non-core business assets and significantly reduce inventory levels.
- Focus’ involvement resulted in the Company turning around annualized EBITDA performance within a nine month timeframe from negative $2.0 million to positive $1.5 million, bringing its loan facility back into compliance in the process.