Tripping over a garden hose left the founder of a fifty year old family business incapacitated. His grown children rallied to assume control, but a business downturn and inadequate management training began to impact the company. Sales rapidly declined, the company lost money for several years, and the family struggled to cope with the new dynamics. Finally the bank called the loan.
What are the options?
Burke Capital Corporation (“BCC”) was called in to assess the situation. The company’s traditional truck business was losing money and had few customers. However, a second business in specialty mining equipment was found to have huge growth potential. BCC quickly reconstructed the company around this new line and began to book significant sales with excellent margins.
In less than 6 months Burke Capital repaired the relationship with the bank, cleaned up the past due trade debt, and produced a dramatic revenue turnaround that restored profitability.
Perhaps the greatest challenge was in creating a working governance structure for the business. We reshaped the board of directors and began regular reporting. By reassigning one difficult family member out of daily operations we elevated the board’s focus to a more strategic and productive level.
At the operating level, BCC restructured the management team around the strongest contributors. The cash and trade cycle were tightened up, employee accountability was established, and consensus decision making was promoted. In essence, with Board support we changed the corporate culture to a can-do, action-oriented, teamwork approach.
The Burke Capital team of highly experienced professionals focus on four primary practice areas: We deliver the capital companies need, help them successfully navigate tough times, guide growth in sales, earnings and value, and assure a rich harvest when the time is right. Opportunities to engage company principals are limited, so it is important to act decisively.
Just remember, when life’s little surprises trip you up, a quick phone call to Burke Capital can get you back into the black. We have experience, depth and we’re really good at what we do.