Assessments

A skilled, timely, and accurate assessment is critical to defining the best path forward. Our assessment engagements provide both the company and its financial constituents meaningful and actionable insights on the company’s historical performance, as well as a road map of its future performance that accounts for risks and opportunities to its business plan.

CR3's assessments help our clients see around corners.

Our typical assessment engagements last three to four weeks, are priced on a fixed-fee basis, and use a time-boxed approach to identify the areas representing the most positive financial results.

A typical example of our assessment approach is below.

Week One: Review, Observe, Analyze

  • Collect and Review Data
  • Employee Interviews
  • Data Review
  • Facility Tours
  • Strengths/Weaknesses
  • Company Positioning
  • KPI/Reporting Review
  • Budget Performance
  • Cash Flow Review

Weeks Two and Three: Conduct Focused Assessment

Key Lever Identification and Pareto Analysis
Focused Assessments and Analysis (vary by situation):
  • Integrated Financial Modeling
  • Working Capital Review
  • Demand Generation
  • Sales and Marketing
  • Vendor Management
  • Inventory (Turns, Dead, Active)
  • Utilization
  • Margins and Costing
  • COGS/COS
  • Performance Management
  • Leadership Team Effectiveness
  • Technology Leverage for Business Process Effectiveness
  • Divisional or Geography Assessments
  • Position Review/Cost Structure
  • Benchmarking
  • Capital Structure

Week Four: Formulate Recommendations and Options

  • Review key strengths and weaknesses
  • Identify and quantify key levers for financial and operational improvement
  • Review prioritized go-forward plan
  • Identify key contingencies

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The company is one of the largest integrated protein and grain producers in North America with operations in 12 locations. The company was struggling with financial underperformance relative to its peers due to lower protein prices and higher operating costs.
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Retail Marketing Company

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The company was a large consumer products marketing company that had experienced a decline in liquidity, was anticipating continued near-term declines, and had concerns about missing covenants due to an expected 50%+ decline in EBITDA.
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Integrated Construction

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The company is a $100MM designer, manufacturer, and installer of glass and metal enclosures for mid-rise and high-rise buildings with a strong sale backlog. Engineering, financial systems, and field management infrastructures were unable to keep pace with the growth.
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Consumer & OEM Plastics

The client was a plastic blow molder with a line of retail products and a provider of custom OEM parts. Due to numerous missteps, key OEM customers were lost and operating performance declined, leaving the business at risk of violating covenants in their loan agreements.
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Abrasive Products

Abrasive Products

The client is a private equity-owned industrial distributor of abrasive products, equipment, safety, and environmental products and services. The company was unable to avoid a financial-covenant default caused by poorly integrated acquisitions and warehouse management, as well as dropping oil prices.
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The client was an operator of residential substance abuse facilities. New ownership led to undercapitalization of the company, which combined with market challenges and changes in payor mix, led the company to seek guidance on stabilizing operations.
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The family-owned company provided high-quality replacement parts for off-road earthmoving equipment. The company's prior management team had mismanaged operations and perpetrated a fraud, which created significant liquidity issues and drove significant legal expenses.
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Soup & Sandwich Chain

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The company was a 300-unit privately held, soup and sandwich chain experiencing declining EBITDA despite stable or higher sales, inconsistent performances from different configurations and expansions, and underperforming relative to company projections.
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JCPenney

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JCPenney is a publicly traded company with 846 corporate locations and 12B in annual revenue that elected to file Chapter 11 bankruptcy due to COVID-19 shutdowns, C-suite turnover, and changes to the business and merchandising plans.
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The company is a $160MM oil and gas drilling and heavy-haul moving company with operations in multiple locations. A drop in oil prices caused a reduction in rig fleet utilization, EBITDA and cash flow, which caused the company to default on its term loan and revolving line of credit.
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