Integrated Construction

The Situation

  • $100MM designer, manufacturer, and installer of glass and metal enclosures for mid-rise and high-rise buildings – company doubled sales over and created a $200MM backlog
  • Engineering, financial systems, and field management infrastructures were unable to keep pace with the growth; balance sheet had unrealized operating losses (mistaken as billing challenges)
  • Margins fell short of estimates and many jobs experienced delays; the company exhausted borrowing availability

Role(s)

  • Interim CFO
  • Senior Advisor to CEO

The Work

  • CR3 professional engaged initially to perform an assessment and subsequently retained as senior advisor to CEO and interim CFO
  • Reviewed most of the active jobs, as well as upcoming projects, to validate margin expectations and identify and correct faulty design elements
  • Terminated a number of projects before field activity began
  • Reviewed work-flow processes and modified as necessary
  • Replaced, upgraded, or redeployed project managers to support new revenue objectives
  • Developed and employed dashboards to provide real-time and actionable information
  • Implemented new financial controls and procedures to speed the flow of information and to control cash

The Results

  • Determined company lacked sufficient expertise for glass installation design and execution – COO and engineering manager with the requisite skills were hired
  • Developed strategic plan and maintained only work which the infrastructure could realistically support
  • With a reduced SG&A burden and focused pipeline, the company built a model at a lower revenue level which both the sponsor and lender supported
  • Sponsor provided company with additional capital and the lender restructured the loan in line with company’s ability to perform

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Overview

  • Construction Services
  • Interim Management

Engagement Team