An EGI Advisor was recommended by a New York investment advisory firm to the parent holding company with a portfolio of nine companies. The EGI Advisor was subsequently hired as interim President of the largest of the nine companies with the approval of the holding company Board and its PEG owner, an international publicly traded investment firm. The holding Company had revenues in excess of $600 Million and decimated financial performance, primarily attributed to excess leverage and operating issues at its largest flagship Company. This Company manufactured custom-engineered metal buildings and had approximately $300 Million in revenue. A complex bankruptcy loomed involving all nine companies, and the survival of the flagship and therefore parent Company was uncertain. To make matters more challenging, the backdrop was an entire industry in total chaos due to worldwide fluctuations in steel prices and disruption in supply.
The flagship Company faced a series of equally critical problems:
Success was achieved by mobilizing internal resources and supplementing them with operating expertise from EGI. An EGI Advisor served as Vice President of Marketing and coordinated the Company’s relaunch. Another Advisor stepped in as Vice President of Engineering to totally refocus this organization to achieve accurate designs and on-time delivery at reduced costs resulting in a remarkable customer relations victory. Two EGI Associates provided strategic financial analysis that was crucial to success. Additionally, an EGI Associate conducted face-to-face customer surveys and performed market research while another colleague analyzed organizational consolidation opportunities.
All these problematic issues were addressed as follows:
The EGI Team orchestrated a very successful turnaround of the flagship entity over a 21-month period and thereby saved the parent holding Company. The flagship Company had a highly effective relaunch and secured record performance allowing the holding Company to ultimately exit bankruptcy. Shortly thereafter, the parent Company sold for a twelve multiple to a Fortune 500 industry player.