"The HK Turnaround team successfully reorganized an electrical company with annual sales of approximately $7 million..."
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Reorganization of an Electrical Company with Annual Sales of $7 Million

Situation: 
An electrical company with annual sales of approximately $7 million was hemorrhaging money but could not pinpoint why, nor what to do about it.

Solution: 

The HK Turnaround team successfully reorganized the company.  

 

Details:

The HK Turnaround team successfully reorganized an electrical company with annual sales of approximately $7 million.  First a detailed analysis was conducted, including a reconstruction of accounting records, a review of contracts with purchasers and suppliers, and a profit analysis by line of business.  An accurate cost of materials was prepared, as was a percentage of completion contract analysis and detailed overhead analysis.  As a result HK Turnaround was able to demonstrate to the client why they were losing money.

 

Based upon these analyses, contracts that were not profitable were terminated and business going forward was analyzed to determine if contracts would be profitable prior to signing them. Overhead reductions were made and the company was downsized to return to profitability. An overall reduction in debt of approximately $800,000 was achieved and assets were sold to satisfy bank debt and reduce personal exposure of company owners who had guaranteed the debt.  The company is operating successfully today.