Executive Advisory

Running a middle-market company at a profit has never been more difficult. The number of issues, as well as the increasing complexity of these issues, can create an executive management challenge. In today’s fast-paced business environment, company leaders must make important strategic decisions with imperfect and/or incomplete information in order to continue to move their company forward.

Sutker Moran has worked with middle-market enterprises across a variety of product and service categories. As a team member as well as a trusted executive advisor, our unique inside/outside view gives us multiple perspectives on an owner’s business, which allows us to be a powerful choice as the company leader’s “hands-on” executive advisor.

We help business leaders answer mission-critical questions like:

• Should we invest in a new market segment?
• Should we convert to a new technology platform?
• What is our exit strategy? When is the right time to sell the company, and at what valuation?
• When is the right time to acquire a company? Or should we launch our own proprietary service?
• What is the right decision when it comes to particular issues, whether they are related to personnel, customers, suppliers, compensation, ownership, banking, etc?

A Skittish Bank Finds Comfort in the Company’s Plan

$25 million Commercial Printing company

Overview

Given the variability in revenue of a project-based operation, a $25 million Commercial Printing company continued to fall short of profit expectations causing its lender unease over the prospects of the organization. The lender requested the Company hire a financial consultant to help develop a turnaround plan.

Solution

With reluctance from ownership, Sutker Moran was hired and instantly plugged itself into the Company’s cash situation to create a 13-week cash flow projection to help gain comfort with the adequacy of the company’s near-term liquidity.  Simultaneously, Sutker began working on a Zero-Based Budget exercise to find the optimal structure of the company.  The resulting plan including downsizing to a two-shift operation, selling excess equipment to pay down term debt, and shifting focus away from identified underperforming segments while investing more resources those segments that were determined to generate incremental profits.  When presenting the financial plan to their bank, it was satisfying to listen to our once-reluctant client explain the zero-base process to our lender.  Based upon the plan, the lender loosened its lending limits. Fast forward a year later and the Company is generating consistent profits, and the upcoming bank renewal will be far less restrictive.

Creating Value in a Distressed Business

$20 million Marketing Agency

Overview

Given market conditions, an eroding customer base, and the recent flight of good employees, the president of a $20 million marketing agency was at her wits end as she foresaw the organization continuing to deteriorate.

Solution

Hired by the organization to assess their situation and provide strategic alternatives, Sutker Moran, through developing comprehensive income statement and cash flow projections, determined given the critical nature of the situation an expedited sale of the company was the best path to maximize the value of the organization. Sutker worked closely with remaining key members of the organization as well as with various members of the ownership group who had diverse opinions to obtain insight on how best to craft a Sales Memorandum that conveys the Agency’s value. Sutker contacted several buyers and was able to identify two interested parties. Sutker then skillfully negotiated a very attractive sales price from this buyer that provided the ownership group a satisfying return on their investment, especially given the circumstances.