A $150 million multi-site bi-coastal consumer products manufacturer was operationally dysfunctional, cash flow negative and weeks away from insolvency. The company was restructured via a distressed transaction by 3 hedge funds and recruited Carter Pennington as a turnaround CFO, with full P&L responsibility, to prevent bankruptcy and maximize return on investment.
Worked quickly to get the company cash-flow positive. Within 4 months, generated $3 million cash through aggressive inventory and receivable management – negotiating new terms, processes, and relationships with vendors and customers – taking the company from a cash-burn to cash-positive.
Implemented cash culture throughout the organization, spearheaded new protocols to reduce waste, increased productivity and streamlined operations. Recruited specialized consultants to make improvements in manufacturing processes, IT applications and financial controls. Developed a new strategy and facilitated the divestiture process of the newly turnaround company.
Reversed a $6 million loss to a $7 million profit in 15 months, more than doubling the enterprise value. This included increasing manufacturing thru-put by 50%, reducing shop floor waste by 25% and increase productivity by 17%. Within 30 months the company was sold and generated a 45% ROI to investors.