Case Study Logo

Uncovering Value | Case Study #3

Driving Impaired –When leadership Lacks the Skills to Execute

Business Profile

Multimillion dollar privately held company has a once profitable division loosing revenue at $5million per year for the past 6 years.

Situation

A regional bank had expressed concern for a client whose deposits began to drop significantly over a period of 5 years. During a monthly update meeting with the company Board of Directors, it became evident that drastic changes were required to stop the hemorrhaging in their once most profitable consumer electronic products division..

Challenge

After a Securieon conducted operational and organizational behavior assessments of the CEO/Founder and division presidents, it became evident, the acoustic division lacked experienced leadership. The division president had no inventory controls in place and a mismanaged relationships with Asian suppliers. To add to the chaos, the division president solicited an Asian investment group who scheduled an onsite visit to the company within three weeks of Securieon being hired. Clearly, leadership lacked emotional intelligence, which also resulted in a major employee exodus.

Strategy

Securieon provided hands-on leadership training and mentorship to several department heads. Based on Securieon’s operational efficiency analysis, and supply chain expertise, a recommendation was made to renegotiate with the Asian suppliers, reduce SKUs and implement capital expenditure controls. Securieon honestly and tactically informed the founder that his wife – who was also the head of the poor performing division – should be transferred to another role.

Results

Securieon recommended winding down the acoustics division, redeploying the division president and focusing the company on the more profitable divisions specifically Light Detection and Ranging (LIDAR) technology. LIDAR is used for driverless vehicles. The company eventually closed their acoustics division and secured a multimillion dollar investment from two major US automobile companies to expand their LIDAR market.

Collaboration Partners

Securieon retained the following ProVisors resources to participate in the technology project:

  • Employment attorney
  • Supply Chain Advisor
  • M&A attorney
  • Interim CFO

The Securieon Group is a business consulting and management advisory firm that specializes in developing and executing high performance growth strategy for each client

Our singular professional focus is to provide significant leverage for privately held business owners and stakeholders to achieve their financial, personal, career and liquidity goals. Our hands-on leadership expertise in financial, operational, manufacturing, distribution, marketing and sales results in higher performing teams and higher valued business. We believe leverage is the key to sustainable and scalable growth, capital and higher valuations for future successful exits..

To learn more about how we can collaborate, contact:

Leyla Kulyyeva, Business Analyst

Email: leyla@securieon.com

Phone: 669.239.9941

www.securieongroup.com