Project-Based Consulting Services
Middle-Market Companies require high-level expertise and experience just like their large-cap counterparts. Sutker Advisors’ efficient methodologies and low overhead, allows us to provide highly-regarded consulting services at a cost below the market rate.
When you have a large project to complete or significant issue that needs to be resolved, our organizational, operational, and financial expertise combined with our hands-on, results-oriented approach helps Companies improve their profitability.
Case Study: The Bank and The Company Working Together to Solve a Problem
$100 Million Trucking Company
A historically profitable $100+ million provider of temperature-sensitive transportation services lost a major customer. Coupled with the downturn of the oil and gas fracking industry, the Company had severe liquidity issues.
Through various financial analysis and working with the management team, $6.1 million in profit improvements were identified and implemented. Through negotiations with each secured lender, the annual principal and interest payments were reduced by $5.3 million or $442 thousand per month. The Combination of profit-enhancements and principal re-amortization provided sufficient liquidity and resulting profitability.
Case Study: Dominant “Partners” almost Kill the Business
$30 million Packaging Company
The two largest customers, representing 86% of revenue, dictated the pricing of a $30 million Specialty Cheese Packaging business. One of these customers also supplied 71% of the raw cheese purchased used in production. These dominant “partners” were putting a stranglehold on the business resulting in lackluster performance and drained liquidity.
The first step was to improve operations – implementing various manufacturing efficiencies, reducing production capacity, and eliminating non-essential personnel. Next, it was time to convince ownership to push back on the major customers, one of which was supplying a majority of the raw cheese. Either our “partners” would allow us to make money or would lose a good supplier and, in one instance, also a good customer. The Company entered into a tolling arrangement with the largest customer and negotiated price increases with the second largest customer. These steps would dramatically increase margins and eliminate a significant amount of cash required to pay for product. Through these restructuring actions, the Company’s’ operating deficit was reversed the following year.
Case Study: Does this business really work?
$20 million web-based furniture maker
One of the two owners of a Company that was in the very mature age of its business cycle but cash flowing began to invest in a start-up business in a potentially burgeoning market. After several years of consistent losses and several million dollars invested, both owners questioned the viability of the business model. Sutker Advisors “locked arms” with the Company’s management team and helped them make significant restructuring moves such as the elimination of a low profitable, resource-draining royalty relationship as well as non-productive sales representatives while constructing a working senior management team structure and creating methodologies to identify and convert excess inventory into cash. Even though Sutker played a small role in Company’s future success, we are proud to say we helped the management team build the foundation to allow it to have doubled in size and consistently generate millions of dollars in annual profits.
Case Study: Beginning With the End in Mind
$100 million printer
A multi-division printing company wanted to develop an operating plan for its upcoming fiscal year.
Sutker introduced its results-oriented business planning process which included surveying key personnel regarding the marketplace, operations, personnel, and organization, working with the Company’s management team to, based upon the survey results, identify and analyze key company attributes, weaknesses, and opportunities. Based on this assessment, Sutker helped the team develop strategic goals. Then, “drilled down” to specific action steps to attain these goals as well as determine key result measures to assess their progress.
Case Study: Costing Analysis Key to Reinstating Profitability
$12 million plastic injection molder
A $12 million injection molding company was minimally profitable mainly due to the inability to pass through significant material price increases.
Through a zero-base exercise, eight unnecessary positions were identified and eliminated for a net annual savings of $450,000. We also conducted a lengthy activity-based cost analysis and discovered opportunities for $750,000 in annual price increases. A minimum order requirement was established for non-major customers, eliminating unprofitable short production runs. In addition, activity-based set-up charges were instituted to encourage major customers to order in larger lots.