Tale of a Turnaround, Part 6: “A Successful Turnaround”
Over the past five weeks we’ve shared the process used to help turnaround a small family business and I hope you’ve enjoyed the Tale of a Turnaround and have taken away some insights.
In conclusion, progress rarely happens in a straight line and there will always be potholes in the road to success. A global pandemic and skyrocketing oil prices created significant supply chain and cost challenges but they were all overcome because of the solid team and processes we had created and put into place. As the client’s financial position began to stabilize, we added a Sales Coach and a “Business Therapist” to the team to establish an Advisory Board. Consultants in Human Resources, Website Development and IT Security all played a role in supporting the business as it grew.
One year shy of our Strategic Plan Target Date, an unsolicited acquisition offer was received. We had instilled a discipline of “run it like you’re going to sell it” so the financials were clean with no skeletons hiding. The Due Diligence Process was intense and detailed. All of the information requested was easily provided because we had methodically tracked the business’s performance trends and managed them in the right direction.
Business transformation is a process and rarely can happen with just the flip of a switch. Transformation and turnaround, especially in a family-owned business with limited resources, takes time to implement and is best facilitated by an experienced guide that understands the breadth and depth of issues that will be faced.
My objective with clients is to generate a 3x to 5x return on their investment in The Hampton Group’s services. With this client we were able to generate greater than 10x which most would agree was a Successful Turnaround.
