A $90 million, leading manufacturer of precision insert and injection molded thermoplastic parts for high growth applications. The Company is principally a Tier II supplier to the automotive industry
The Company is operated out of 2 separate facilities in the Midwest and has additional operations in Mexico and Asia
The Company was operating in a very serious liquidity situation and engaged FDP to review their strategic reorganization plan and cost reduction initiatives.
FDP’s review and analyses included:
–Reviewing management’s plan to consolidate their plants;
–Assisting management in quantifying the capital required to consolidate the plants;
–Reviewing the Company’s 13-week cash flow forecast to determine the capital needed to cover operating losses; and
–Preparing a monthly financial forecast to determine if the profit improvement initiatives are enough to cover forecasted operating losses.
Worked closely with management to prioritize strategic initiatives and develop tactics to improve cash flow and profitability:
–Assisted management in identifying duplicate operating and personnel costs as a result of operating two facilities;
–Assisted management in identifying and negotiating a sales price increase with a key customer;
–Assisted management in preparing for and executing a significant reduction in force; and
–Assisted management in identifying sources of capital necessary to cover forecasted operating losses.
Fort Dearborn determined that management should consolidate one plant into their existing plants.
FDP estimated that the consolidation of the facilities would result in annual savings of approximately $2 million.
Fort Dearborn negotiated a sales price increase with a Tier I auto supplier of more than $1 million annually.