Point-of-Purchase Display Designer & Manufacturer
Company:A designer and manufacturer of point-of-purchase displays.
The Company was struggling to maintain profitability while consolidating 17 subsidiaries following several acquisitions and responding to a default on its lending agreements.
The Company retained the assistance of a Focus professional to address its financing defaults, implement robust financial reporting, and to rationalize the diverse businesses, thereby improving profitability.
- Negotiated a forbearance agreement with the Company’s lenders, enabling the Company to continue operations, without disruption in day to day activities.
- Subsequently the business was able to secure a successful refinance agreement.
- Developed and implemented new and improved financial reporting and analysis system, including an upgrade in the Company’s ERP system.
- Focus’ efforts in profit improvement initiatives included recommending and implementing the consolidation of operations which included injection molded and fabricated point-of-purchase displays.
- Additional profit improvement was realized by the sale and shutdown of several non-core businesses.
- With the implementation of the new financial reporting and analysis system, the decision making process became more robust, resulting in improved profitability in negotiating and fulfilling large contracts with key customers such as Wal-Mart, L’Oreal, Maybelline, CVS, Staples, etc.
- The Company was returned to profitability in a timely manner with EBITDA increasing from $2 million to $26 million.
- Consolidation of key operations in the NYC metropolitan area led to improved manufacturing productivity and substantial reduction in costs.