Case Studies

Client - $20 Million Custom Electronics Manufacturer

Large losses for first five months of recession eroded capital, weakened confidence of senior lender in borrower and limited ability to support expanding sales as major customers resumed ordering.

Abacus Initiatives

  • Advised client on executing major cost reductions to reduce losses and lower break-even.
  • Strengthened relationship with senior lender.
  • Coached financial staff to master bank requirements for weekly 13-week cash flow forecasts, bank borrowing base calculations and bank advance approvals.
  • Introduced investment bankers to add capital and liquidity to the business.
  • Introduced mezzanine finance group to add liquidity to the business.

Results

  • Cost reductions of over $100,000 per month were made that helped return the company to profitability.
  • Existing senior lender was convinced to extend current revolving credit facility one year.
  • Mezzanine commitments were secured to provide access to capital and liquidity for a four year period.
  • An optimal equity investor was selected to provide long term capital and liquidity to support market sales growth and specific contracts and customers. This enabled the company to return to growth and allowed the owner to have a significant future return on investment.

 

Client - $14 Million Marketing Services Company

15 year old, successful business required a fresh look, an updated sales and marketing infrastructure, and a strategic plan for a successful exit in 5 years.

Abacus Initiatives

  • Recommended a new name, logo and tagline to reflect the company's new focus on an expanded service offering.
  • Installed sales reporting discipline, CRM technology and accountability in order to drive sales and improve customer service.
  • Established a budgeting process and quarterly board meetings.

Results

Currently in process.

 

Client - $3 Million Marketing Services Company

Reduced corporate spending caused by the recession resulted in a sales decrease of over 50%, subsequent pressure from the bank lender and created a challenging environment in which to grow the business and plan for a successful exit.

Abacus Initiatives

  • Analyzed acquisition opportunities, strategic partnerships and potential investors.
  • Created a sales and marketing strategy and partnered with an outsourced marketing firm to meet budget restraints.
  • Established a quarterly update package to improve communications with senior lender.
  • Installed a disciplined financial reporting process.
  • Improved staff.

Results

  • Despite suffering a 65% revenue decline, the company achieved breakeven and maintained their credit line with the bank.
  • The company changed strategy and added new lines of business to reduce dependency on their more commoditized services.
  • A new operations manager and accounting manager were hired.
  • This engagement is ongoing.

 

Client - $2 Million Service Division of Alternate Energy Company

The Company needed to create re-occurring revenues with energy conservation and green services and products while establishing a stable customer base.

Abacus Initiatives

  • Created a structure of self-renewing offerings that provided the client's customers Energy Cost reductions, System Diagnosis, and scheduled service for multiple products that were common in the homes and small businesses.
  • Developed sales tools and energy models that allow accurate estimates of proposed savings.

Results

  • Our client's customers now have a choice of various products with 2-5 year pay backs on energy savings and the Client went from 25 to over 300 service agreements in a six month period.
  • In addition we were able to increase Up-sells and add-on-sales by showing the benefits of higher efficiency equipment and also replacing systems that were not at end of life cycle with higher efficiency and environmentally friendly equipment.
  • Total sales grew 75% in 9 months.