Expert in Business Management, Supply Chain, Economic Damages, Pricing, Business Valuation and Interruption
Case Example - Business Valuation and M&A Strategy.
A large private equity fund considers the potential value of its investment in a $150 million business and decides to sell.
A large private equity fund had purchased a business at a deep discount near the bottom of the market. There was significant uncertainty about when the market was going to recover, what the value of the entity was, and what it could be. The investors asked us to recommend whether they should manage the business for cash, invest more money, merge it with a competitor, or sell it.
His approach to answering these questions was simple and straightforward. First, He clearly defined each scenario and valued potential cash flows in a range of market conditions that were defined based on analyst forecasts. He made his recommendation based on the risks and likely returns of each scenario.
He concluded that the business could be sold for more than what the fund had purchased it for because the business’ profitability had improved, the market conditions were modestly more attractive, and there were potential buyers that could capture additional market benefits not otherwise available to the business. The business was sold four months later at the recommended target price.Case Example—Business Strategy.
Software business needed to accelerate revenue growth.
The Board of Directors of a $50 million software business was concerned about lower than expected revenue growth. They believed that the business’ strategy was flawed and that management had lost its focus. While the Management Team acknowledged that revenue growth was lackluster, they believed it was due to a lack of sales resources.
He was asked to evaluate the current business strategy, value the impact of alternative strategies, and provide our recommendations on how the business should proceed. They worked together with management in reviewing their current strategy and developing and evaluating alternative options.
He concluded that the current business strategy was sound, but their vertical market priorities, basic sales approach, and pricing needed to change. The changes did not require additional sales resources. The Board of Directors and the Management Team agreed with the findings and recommendations. They subsequently worked with management to execute these changes. Revenue growth accelerated by twenty-five percent in the following twenty-four months. Case Example - Strategic Negotiation.
A manufacturing business saves $3 million dollars on shipping product to an important market.
The Management of a $300 million manufacturing business decided to close its plant in Hawaii in favor of manufacturing the product on the west coast and shipping it. This saved several million dollars annually despite the high shipping cost. The business’ purchasing organization tried unsuccessfully to reduce freight cost. They had concluded that since there were only two carriers to choose from, and neither would budge on prices, there was little money to be saved.
He was asked to see if money could be saved in this category. His approach was simple. He determined what leverage the business currently had with the freight companies and how this leverage could be improved. He researched the market for shipping from the west coast of the United States to Hawaii and found that it was a regulated duopoly. Not surprisingly, the prices were high and steadily increasing despite a huge drop in the ocean freight price index around the world.
However, the business had more leverage than it thought since they had manufacturing operations already in place that could make and ship product from Mexico (an unregulated market) at a large savings. He approached the current vendor with this information and asked them to meet the target price. When the freight company realized they were potentially going to permanently lose the business they quickly met the target price reduction. Case Example - Supply Chain Cost Reduction.
A $500 million business returns to break even after an eighty percent collapse in market demand that followed a broader decline in the US market.
The business’ management team was faced with an eighty percent decline in market demand due to the collapse of the housing market. Prior to engaging the expert, management had already taken aggressive action by reducing headcount and closing plants.
Despite these efforts the business still had a high cash burn rate. A two-week diagnostic identified an opportunity to rapidly reduce spending outside the company. Headcount reductions had left the company with insufficient staff to capture the savings in a timely fashion.
He was asked to essentially act as an interim purchasing department. To start with, his team added a dozen people to the internal purchasing team. Together they delivered a sixteen percent reduction in spending over the course of several months. He eliminated outside spending where appropriate and renegotiated long-term supply contracts at reduced rates. Significant cash savings from the project became visible within eight weeks of launch.
Case Example - Rapid Cash Flow Improvement.
A $200 million company with strong margins in a low-growth market increases cash flow by forty percent in six months.
A manufacturing business enjoyed a high share of a low-growth market and stable, fifteen percent EBITDA margins. Senior management sought to expand EBITDA margins by two to three points.
Initial brainstorming and scoping analyses identified over two hundred improvement ideas from across the business. The four-month effort winnowed these to forty-four initiatives worth $12.5 million per year. Implementation was completed within six months (ahead of schedule).
Subsequent efforts were launched to capture further strategic market and supply chain opportunities. These initiatives should add another six to eight points of margin.
Expert may consult nationally and internationally, and is also local to the following cities: Minneapolis, Minnesota - Saint Paul, Minnesota - Rochester, Minnesota - Burnsville, Minnesota - Saint Cloud, Minnesota - Eden Prairie, Minnesota - Minnetonka, Minnesota - Eau Claire, Wisconsin
|Year: 1998||Degree: MBA||Subject: Finance and Business Strategy||Institution: University of Chicago|
|Year: 1991||Degree: BS||Subject: Chemistry||Institution: University of Minnesota|
|Year: 1993||Degree: Masters (equivalent) Engineering||Subject: Nuclear Engineering||Institution: US Navy|
|Years: 2005 to Present||Employer: Undisclosed||Title: Principal||Department:||Responsibilities: He is responsible for all aspects of the firm's operations including: hiring talent, marketing, developing new business and delivering client projects.|
|Years: 2002 to 2004||Employer: Thomson Reuters||Title: Director of Global Strategy||Department: Corporate||Responsibilities: He led a 20-person team with revenue responsibility for a $100 million small and individual law firm market segment. As Director of Global Strategy, he managed the strategic planning process, developed business strategy, and assisted business units resolve a range of strategic and operational issues.|
|Years: 1998 to 2004||Employer: Mckinsey & Company||Title: Engagement Manager||Department: Corporate Strategy and Operations Practices||Responsibilities: He was a member of McKinsey’s Corporate Strategy and Operations practices. He counseled senior management on strategic, operational, and performance improvement issues.|
|Years: 1991 to 1998||Employer: United States Navy||Title: Lieutenant / Engineer||Department: Engineering||Responsibilities: He gained extensive hands-on leadership experience through rotating management positions in high stress mission critical environment. Directed and evaluated 100-person department.|
|Years: 1991 to 1998||Agency: Navy||Role: Officer||Description: He was a Nuclear Engineer on US Navy submarines.|
|Years||Country / Region||Summary|
|Years: 2006 to 2006||Country / Region: Australia||Summary: He did profit improvement work for a major construction materials firm in Sydney.|
|Associations / Societies|
|APICS, Best Practice Research, Gold Dolphins Association (Navy)|
|Licenses / Certifications|
|P.E. (Nuclear Engineering)|
|Awards / Recognition|
|2 Navy Achievement Medals and 1 Navy Commendation Medal|
|He has assisted companies in sourcing of a large number of categories: Chemicals, capital equipment, electricity, natural gas, oxides, freight-LTL/FTL, ocean, small package parcel, aggregate, cement, metal components, thin wall pipe, electronic components, key pads, computers, office supplies, maintenance supplies, computer chips, and packaging.|
|He has extensive experience with manufacturers in construction materials (e.g., concrete, roof tiles, bricks, etc.)|