TURNAROUND & CHANGE MANAGEMENT
Get Your Ducks in a Row, or Get New Ducks
Enlist the support of your investors to make change happen. Transformation works best when everyone is on board.
Change programs need investor support and a CEO aligned with the change. When problems arise in execution, bold action needs to be taken.
A PE firm invested in an eco-friendly consumer products company turned to Mara Partners when the company hit a period of double-digit losses and continual cost surprises. The new board and recently-hired CEO struggled to develop a clear strategic plan. The investor wanted change.
Marea Partners stepped in and immediately conducted a holistic assessment of the company, from liquidity and capital structure to operations and management. By taking on senior executive positions, Marea Partners stabilized the organization and started the turnaround process.
The investment firm received an evaluation of possible restructuring options and turnaround plans. The selected reorganization plans led to a 12% SG&A savings. Re-worked supply chain and merchandising programs increased productivity by 15% and helped recapture lost sales of $3MM. Marea Partners also helped the company re-negotiate key terms with a primary banking partner, adding new capital flexibility.
Change needs support both internally and externally. Poor performance doesn’t have to be the only impetus for change. Be open to where consensus for transformation exists to facilitate value growth.
Recaptured Sales Loss: $3MM