The Company was a manufacturer of bathroom vanities, medicine cabinets and lighting fixtures with 95% of its product sold to two customers.
One of the two primary customers notified the Company that its business was being transferred to another manufacturer, resulting in a loss of approximately half of the Company’s revenue.
FDP and management developed a turnaround plan to reduce costs and sell its current facility.
The current facility had significant appreciation in value and allowed the Company to move to another, better-suited manufacturing facility, while recapitalizing the business.
Additionally, FDP worked with management to pursue the kitchen business segment which provided much better margins and significant growth opportunities.
Overall, FDP summarized the turnaround strategies in a financial forecasting model that the Company successfully used during discussions with their bank, and as a blueprint to manage their business on an ongoing basis.