For 30 years, the company has provided custom installation of warehouse distribution systems on a national basis and had sales of approximately $8 million.
- The client had not been producing timely financial information to run the business or share with outsiders.
- All information was contained in QuickBooks but was only summarized at year end by an outside accountant.
- The client entered a period of very high growth with a few very large jobs.
- After completing the first large job they became concerned that the profit margins were significantly less than expected.
- This created great concern and risk during this critical period of growth.
- The owner of the business hired a consultant to help the owner manage for the future and the consultant recommended Lauber Business Partners to assist the owner with the financial side of the business.
- The Lauber Business Partner evaluated the situation and determined there was not a sound quotation process being used by the Company when bidding on new jobs. It was determined that key assumptions the client used in quoting new business were inaccurate and certain costs were not being included.
- Lauber built a quoting model to ensure the inclusion of and accuracy of all costs in each bid. At the conclusion of each job there was a comparison between the projected and actual profit.
- Internally produced financial statements were created and produced monthly along with a budget / forecast. Detailed analysis of the financial information was conducted, providing important timely insights to the client.
- The Lauber Business Partner also provided support to the client during discussions with potential large job customers and potential private equity partners.
- Discussions with banks were conducted to seek credit for future growth opportunities.
What this meant to company:
- The quoting model lead to more appropriate pricing, resulting in increased profits.
- Sales grew from $8 million to $20 million.
- The client was able to secure additional bank financing to fund its growth.
- The client obtained timely financial information and analysis allowing it to make necessary adjustments and improve profitability.
If your business is faced with these types of challenges, now is a good time to consider the help of a seasoned Lauber Business Partners veteran who has been through it before. Contact Lauber Business Partners today to learn more.