Case Study

Helping a Family-Owned Media Company Out of “No Man’s Land”

Open road

Insights

  • The company was a family-owned media company that conducted and promoted consumer research and recommendations
  • Rapid expansion into four new southeastern markets had resulted in significant strains on cash flow and operations personnel
  • The management team was weak and inexperienced, particularly in supporting growth
  • The company was not profitable and had a poor cash position with no access to funding
  • Only 90 days of cash remained and the company’s survivability was at stake

Action

  • The Newport partners were engaged to assess and make prompt changes as required
  • A stabilization plan was initiated to ensure the company’s ongoing viability
  • Funding alternatives were quickly identified and accessed
  • Cost reduction opportunities were immediately recognized and implemented
  • Cash conversion cycle improvements were made and opportunities were identified
  • A short-term business plan was defined and initiated, along with a longer-term plan
  • Growth opportunities were reasonably assessed and prioritized
  • The existing organization and staff were evaluated and roles were defined
  • Operations processes and procedures were reviewed, developed and refined
  • A 10-year term loan was obtained to provide reasonable runway for the company’s future measured growth
  • More effective billing and collection policies and procedures were devised and implemented
  • Metrics were created to provide more effective, ongoing measurement of company performance

Results

  • The company achieved profitability and stability within a short time frame
  • A Newport partner was engaged as General Manager to provide professional management
  • The long-term business plan was finalized and buy-in achieved from the owner, which included a transition to a more digitally-focused company
  • Outside market operations were terminated and operational focus was attained on the home market only
  • Operating expenses were significantly reduced
  • Expansion into any new business channels was limited to utilizing existing resources
  • Significant improvement was achieved in the cash conversion cycle
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