Commercial Cleaning Chemical Manufacturer and Distributor
Global enabled a struggling manufacturer and distributor of commercial cleaning chemicals to get refinanced and then sold for $5.7 million in cash to Swisher Hygiene.
Hygiene Services and Cleaning Chemical Manufacturer
In 2015, Global enabled Swisher Hygiene to sell its US operations for $40 million cash after helping the company achieve its first cash positive quarter ever.
With this result, Global won the Turnaround Management Association's Transaction of the Year Award for the US Midwest.
The cash positive quarter was achieved by inventory reduction and a Continuous Improvement program throughout all of Swisher's US operations.
The Nasdaq listed company was sold to industry giant, Ecolab, and the Swisher brand name continues to operate as an autonomous unit for its new owners.
The company could not get refinancing for over 18 months due to lacking inventory control systems across their many national manufacturing and distribution locations. Financial covenants prevented investment in computer systems.
Within three months, Global modified and reprogrammed the existing IT systems and implemented a full perpetual inventory system which enabled refinancing in six months.
Next, inventory turns were improved from four to 8.5 times.
At this stage, the healthy business was acquired by Swisher Hygiene, a Nasdaq listed company.
Power Tool Importer and Distributor
In 2013, Global saved this very distressed company from going under when their current lender wanted to get out, and they were unable to get refinanced.
Global was retained one week before the end of the lender's asset-based lending forbearance. Within three months we reduced inventory and Accounts Payable by $1m to secure sub-debt investment and complete refinancing.
We continued to reduce inventory by 50% and AP by 40% to stabilize cash flow. Today the company is healthy and in business.
Our fees were 100% based on incremental monthly cash generated.
This contract was 100% based on incremental monthly cash generated.
In the first month after Global resolved the company's constraints, they showed a profit of 11% - more than double the industry standard of 5%.
An acquisition, projected to result in large synergies and economies of scale, caused a commercial fine printer double digit net losses even after closing a facility, selling off equipment and letting sales people go .
Commercial Fine Printer
This profit margin was reached by:
Increasing Overall Equipment Effectiveness (OEE) by 50%, and
Reducing paper used by 20%.
We improved OEE and material used by reducing make-ready time and paper wasted on printing presses.