The Company sells construction equipment and supplies and rents a wide variety of construction equipment to major companies and smaller independent contractors, through several retail locations.
Fort Dearborn Partners was engaged to help the Company improve cash flow and profitability.
FDP analyzed and created the Company’s first profitability analysis by line of business and by key customer.
Through our strategic and operational assessments, several changes were implemented, including:
–restructuring the senior management team and their respective responsibilities;
–increasing pricing selectively;
–divesting underperforming assets;
–enhancing cash management and credit policies;
–designing/implementing the Company’s first commission plan; and
–improving data quality, reporting and operational analysis.
The changes identified by FDP increased revenue by 5% and improved profitability by $1.8 million compared to the prior year.