Case History #4 - Dramatic corporate turn-around
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Company Type:
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Small, privately
held, data communication company |
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Company Profile:
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Data communication network access company,
first established in 1975, the new owner acquired company in 1990
in severely distressed condition. |
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Technology MarketForce Tasks:
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TMF called in by company President one
year after acquisition. Company was a 1/2 million in debt; maxed bank
credit line; no new products for 18 months; stagnating sales; high
expenses; a crowded market. TMF asked to evaluate company, make recommendations
based on highly constrained finances, and participate on an ongoing
basis as part of the management team. |
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Methodology Highlights:
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TMF conducted a Fast-Track Action Plan
program. Multiple focuses on unique product differentiation in a crowded
marketplace, reduction of expenses by outsourcing manufacturing, increased
sales potential by migrating to VAR channels, formed important R&D
alliance to boost company's technology capability, and introduced
low cost PR and advertising plan. |
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Key Results:
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During a six-year relationship, the
company turned around dramatically. TMF sourced 1M credit line without
an equity requirement; found strategic alliance partners contributing
significantly to ongoing revenue; assisted in definition of an aggressive
new product plan - 20 new products in 2 years. Company's revenues
grew over 300% with significantly increased cash flow. Company was
acquired in 1998. |
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Main Benefits of Technology MarketForce
Involvement:
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Company was a walking bankruptcy.
Company's President and TMF formed a pro-active relationship to turn
the company around. The President leveraged TMF's strengths at far
lessor cost than bringing similar caliber people on staff. TMF had
equity interest in the company and shared in the rewards of its successful
acquisition. |
