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The following synopses of G.H. Goldstick & Co. engagements
provide a representative sampling of successful cases:
Agribusiness
Problem: Vertically-integrated agribusiness
with 25% national market share and $95 million annual sales lost
$11 million in one year. The bank threatened to pull an overextended
credit line after the company embarked on an ill-fated diversification
effort.
Solution: The board appointed Gary Goldstick Chief Operating
Officer. Mr. Goldstick reorganized the management team, replaced
outdated financial control and reporting systems, implemented disciplined
financial planning and accountability, and led the expansion of
a major new product line.
Result:Within two years, the company had pretax profits
of 12%, found new financing, and was sold to an investor group.
Energy Producer
Problem: Started in the aftermath
of the 1970s energy crisis and justified largely on the availability
of federal and state tax credits, this $40 million (assets) wind
generation utility slipped into Chapter 11 after years of poor management.
Solution: As the Chapter 11 Trustee,
Gary Goldstick directed the efforts to refurbish the wind turbines
and restructure the maintenance organization to achieve a 100% increase
in annual revenue.
Result: The newly profitable
utility came out of Chapter 11 under a confirmed plan of reorganization.
Food Distributor
Problem: After a failed acquisition,
the CEO/Owner was unable to turn the business around.
Solution: Mr. Goldstick assisted
the CEO in selling the company's assets, collecting the receivables,
and renegotiating a termination of a lease obligation.
Result: After liquidation, the
creditors recovered a higher than expected percentage of their exposure.
The principal, who initially had substantial personal liability,
wound up with sufficient funds to start a new business.
Wood Products
Processor
Problem:This fast growing company
processed sawmill waste products to produce pellets and logs for
wood stoves, but experienced extreme seasonal cash flow problems.
The company had also entered into several money losing contracts,
and had substantial environmental compliance problems. When the
CEO called for help, the company was nearly out of cash to pay suppliers.
Solution: The newly appointed
CEO retained G.H Goldstick & Co. to help restructure trade debt
and identify unprofitable product lines.
Result: The company weathered
the immediate crisis, got back on a profitable track, and attracted
a fresh infusion of cash from a new investor.
Retail Furniture
Chain
Problem: This company held a
geographically dominant share of the waterbed market but its market
share began to decline when a competitor initiated an aggressive
discounting program. The company matched the price discounts, resulting
in losses of $50,000 per month.
Solution: The CEO brought in
Mr. Goldstick, who restructured the sales organization and advertising
plan, closed unprofitable stores, renegotiated expensive leases,
reduced operating expenses, and improved inventory controls.
Result: Within eight months, the company regained
profitability, and the competitor, having failed to achieve additional
market share, discontinued its aggressive discounting.
HVAC Company
Problem: A heating and air-conditioning company with revenue in
the vicinity of $5 million was unable to generate profits despite
robust sales growth. As a consequence the company fell behind in
payroll tax payments, 401 k contributions and was on a COD basis
with all its major suppliers.
Solution: G.H. Goldstick & Co performed an analysis
of the company major sources of revenue and costs. On the basis
of this analysis Goldstick recommended that the company abandon
its contracting business and concentrate on its retail and industrial
service accounts. The company gradually extricated itself from its
contracting commitments and within six months it was profitable.
Beauty Products Distributors
Problem: A 50 year old $25 million distributor of hair-care
and cosmetic products was concerned about the erosion in Gross Margin
and market share due to very aggressive competition. To offset the
losses in market share and build sales the owners acquired another
cosmetics distributor. Unfortunately, the acquisition was not adequately
researched and the anticipated synergy did not materialize. The
Company had to hire additional inventory and customer service personnel,
thereby plunging the company into a loss position.
Solution: After a through analysis of the condition of the
combined companies G.H. Goldstick concluded that the only strategy
that would save the parent company was to liquidate both the newly
acquired company and certain assets of the parent company. G.H.
Goldstick directed the liquidation, arranged to pay off the secured
creditor, termed out the unsecured debt, and helped the owner realize
a profitable company with approximately 40% of the sales of the
original company.
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