A smaller privately held company has problems with the profit at the same time as the owner is thinking about selling the company and focus on another product area. The challenge was both to increase the profit and to add other areas to make the company less dependent on only one area. Furthermore the additional product area should make the company more attractive to sell and generate a solid profit to the owner.
After an analysis of the company, lacking the most basic management system as a business plan, sales budget, cost budget, and liquidity budget, a three year business plan was created. The plan contained three possible product areas, each one of them with the potential to grow to a profitable area. A business system to solve the challenge with the profit and to get control of the company was implemented.
Through a strong cost control and follow-up, a ten time higher profit was generated already after a year. The larger cash meant that a complementary product area was acquired through a bankruptcy estate one year after the project. The second product area now integrated into the company has meant that the company is increasing in the value chain. The company is also negotiating to be sold to one of the leading companies in the segment in Sweden.
Comments by the customer
”The engagement you have showed me and my company and the support I have received, I thought was not possible to get at a reasonable price. Thinking of the result, the invested money has given me more than I have expected.”