Residential Home Builder
Roles
Interin CEO
Tom S. O'Donoghue Jr.
Senior Managing Director | Partner, Partners
Tom O'Donoghue offers a special perspective and deep understanding of business needs and objectives from serving numerous businesses as a turnaround manager, financial advisor, investor, and corporate executive.
William Snyder
Senior Managing Director | Partner, Partners
With executive and entrepreneurial experience spanning close to 40 years, William Snyder has restructured, managed, and guided a multitude of companies in a wide variety of industries.
- Increased funding for operations
- Resolved waiver claims at lower-than-expected costs
- Continued operations without customer interruption
CR3 Partners was retained by Board of Directors to manage a home-warranty services operation that was created to respond to homeowner claims related to construction punch-list items and eligible claims covered by a limited structural warranty. CR3 provided effective and efficient mitigation of claims submitted at lower costs than originally projected. The company transitioned to a wind-down to conclude its operations.
The Situation
- One of the largest Midwest-based residential home builders was completing restructuring of operations as it recovered from Great Recession
- Proposed restructuring included carving off and funding home warranty services (“HWS”) operations to service large portfolio of homes as stand-alone operation
The Work
- Originally engaged to analyze key assumptions for carveout of HWS
- Interviewed key members of field and office staff to understand events triggering warranty investigation and disposition
- Stressed tested base case projections for different scenarios related to types of claims and projected disposition costs
- CR3 Partners was further engaged to provide interim management of HWS operations
- Resolving open punch list items of homes completed prior to carveout and warranty claims asserted by homeowners
- Rightsized operations to match actual and projected workload over operating period to point of reducing staff to single person who monitored declining incoming warranty inquiries
The Results
- CR3 Partners provided rigorous analysis and practical experienced-based observations, which resulted in increased funding allocation for operations from restructuring of homebuilder
- Better funding contributed to carveout operations retaining experienced customer service and field representatives to meet HWS, which was critical for transition of operations with no visible interruptions to warranty holders
- Resolved open punch list items and warranty claims at lower cost than projected, allowing operations to operate longer
- Determined operating HWS for more than five years reduced incoming claims to next to nothing
- HWS transitioned to wind-down to conclude its operations
Article
Keys to Ensuring a Successful Roll-Up
Roll-up mergers can create significant value through scale and cost savings, but not all roll-ups perform as expected. Speed of integration may be the most challenging factor when acquiring and consolidating multiple assets.
Article
Unconventional Interim Management Approach Leads to Profitable Exit
Sometimes an unconventional approach validates an uncommon way of thinking. When an organization seeks interim management, it is typically distressed. A new CEO is named, and restructuring commences with the goal of continued operations or an exit.
Article
When and Why Should You Hire an Interim Manager?
How do a management team and Board of Directors know when to engage an interim manager, and how do different situations determine the type of interim manager they should hire?
Video
CR3 Partners Named to Consulting Magazine list of Best Small Consulting Firms 2021
CR3 Partners was recently named to Consulting Magazine's list of Best Consulting Firms to Work For. It is an honor to be part of this distinguished list of companies.
News
CR3 Partners Adds New Service Offering and Continues to Expand
CR3 has appointed new Partner Suzanne Roski to expand and lead this practice in our new Richmond office. Suzanne's background includes over 35 years of professional experience with troubled companies, litigation, forensic investigation, and valuation consulting.
News
CR3 Partners Opens Los Angeles Office and Adds New Partner
CR3 Partners is delighted to announce that Tim Skillman has joined as a Partner of the firm and will be heading the new CR3 Partners Los Angeles office.
News
CR3 Partners Expands Chicago Team
CR3 Partners is pleased to announce that Tim Shanahan has joined the CR3 Partners team and will be based in its Chicago office.