The Fast Growth Assembler

A Fast Turnaround and 5-Year Success Story

Situation

This company started in the garage of an entrepreneurial product designer who came up with a better mousetrap. His patented computer monitor mounting device propelled the business from $3 million to $25 million in three years. The owner had recruited most of his 100 young employees from his church, kids he knew and trusted. Then the wheels fell off. The business growth overwhelmed the young management team. A new president who was brought in to run the company couldn't muster the horsepower. The company went from making a million to losing $2 million. The auditors found a hole in the inventory totaling more than $1 million. The bank notified the company of violated loan covenants. A distributor offered to inject $2 million cash for a 40% equity stake. The owner called Platinum.

Banker: Republic Financial/U.S. Bank (revolving line of credit, term notes, real estate mortgage)
Auditors: Deloitte & Touche, LLP
Attorneys: Krass Monroe LLP

Results

Platinum was named on board of directors, family trustee, COO and CFO. We provided day-to-day management, dropping inventory by $600,000 in 90 days, creating cash flow and stemming the bleeding. One year later, the business had turned a profit of $2.2 million. The client has grown to $40 million and is setting its sails for the wind.

June Transition Story

The Transition Resource Group invites company owners, partners and families in business to learn from a live transition story.

Real Story #5:
An innovative, “out of the box” business transition story

Join us to hear Bruce Baumgarn’s story of how he successfully sold and transitioned from a business in which he had previously invested. Bruce will share the innovative approach he used to get his business ready for sale. Participate in open dialogue with Bruce and other participants. Trusted advisors are welcome accompanied by a client or prospect. Please come and learn from Bruce’s point of view:

Why it is important to listen to your Trusted Advisors
If one road for selling your business isn’t working, there might be a different approach
Timing is everything— the importance of timely action
What do you do with your life when you have 70 additional hours a week at your disposal?

The Transition Breakfast Series is hosted by Olympic Hills Golf Club.

$25 in advance, $30 at the door
Please RSVP by Friday, June 8

Transition Resource Group

Who we are: A select group of professionals who have experience with business owners seeking to transition their business.
What we do: Provide a coordinated set of advisory services bringing specialized expertise to company owners that may be needed at some phase of a transition.
How we operate: Some of our services will apply to your situation, others may not. We consult and advise according to your needs. If we see the need, a TR G member will suggest others who may be a good fit for you. It’s always your decision.

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