Insights
- The company was a family-owned media company that conducted and promoted consumer research and purchasing 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
- Newport partners were engaged to assess and make prompt changes as required and a stabilization plan was initiated to ensure the company’s ongoing viability
- Newport partner Barry Selvidge was retained as interim general manager for a two-year period to provide ongoing professional management and leadership
- Another Newport partner was retained as interim CFO for a similar time frame
- Under Newport’s leadership and direction, short- and long-term business plans were created and initiated
- The existing organization and staff were evaluated and roles were clearly defined
- Operations processes and procedures were reviewed, developed and refined and growth opportunities were assessed and prioritized
- Metrics were created to provide a more effective, ongoing measurement of company performance
- Funding alternatives were identified and a ten-year term loan was obtained to provide reasonable runway for the company’s future measured growth
Results
- The media company achieved stability and profitability within a short time frame
- The long-term business plan was finalized and buy-in achieved from the owner, which included a transition to a more digitally-focused media company
- Outside market operations were terminated and operational focus was accomplished on the home market only
- Operating expenses were significantly reduced and effectively managed
- Expansion into new business channels was limited to utilizing existing resources
- Significant improvement was achieved in the cash conversion cycle
