USA Business Turnaround Following Acquisition
An urgent business turnaround project was needed following acquisition of a loss making regional business by a USA based firm in the government services sector. The acquired business had been making losses over a number of months and there was a reluctance to integrate it into the parent company until it was on a firmer footing financially.
IXPA’s partner in the USA sourced a talented interim general manager with experience in business turnaround and restructuring. The interim manager led the business through strategic and operational changes, improving data acquisition and converting the data into an easy to understand dashboard. This generated a clear flow of real time information which was used to identify issues and make the necessary changes to ensure the business could trade profitably going forward.
Thanks to the support of IXPA’s partner in the USA, Flow Consulting, the right expert was put in place with the expertise needed to turn things around quickly. Part of the interim general manager’s role was to reduce the internal resistance against change and integration. By helping the team to understand, interpret and live by the data that was being generated through daily dashboards, buy-in was achieved and everyone started moving in the same strategic direction. Within a very short space of time the company had four consecutive months of gross margins in excess of 30% overall, its first period of steady profitability since acquisition.