$900K
Labor savings by June
A Successful MRO Distributor Restructuring & Turnaround Program: Restoring Financial Stability and Operational Performance
Industry: Industrial Manufacturing
Service: Operations Strategy and Transformation
Service: Procurement
Service: Transactions and Turnaround
Our Client
A publicly traded mid-market MRO distributor with a catalog of over 350,000 SKUs, facing profitability and cash flow challenges.
The Challenge
The distributor faced financial deterioration, declining sales, and operational inefficiencies, with a prior restructuring plan lacking execution rigor.
- Profit decline: Net income fell sharply from $7M to -$1.7M.
- Cash flow shortage: Dropped from $5M positive to -$10M.
- Rising debt: $14M drawn from a line of credit.
- Stock price drop: Fell from $25 to $14 per share in eight months.
- Weak restructuring plan: Lacked process improvements and leadership alignment.
Real Results Achieved Together
EFESO’s execution-focused turnaround delivered measurable financial improvements and operational stabilization.
$3.3M
Total EBITDA, exceeding bank forecasts by $1.5M
$1.5M
Reduced operating expenses in Q4, leading $3M operating income
Transformation Impact
- $500K positive EBITDA vs. forecasted $200M loss
- Achieved break-even operating income by end of 3Q 2018, reversing projected $2M loss
- Strengthened financial stability and restored profitability
- Improved operational efficiency and cost control through targeted initiatives
- Established structured governance and daily performance tracking
- Aligned leadership to ensure execution rigor and accountability
- Created a foundation for sustainable growth and future performance improvement
- Stabilized net debt and onboarded a new CEO aligned with execution plan
Our Approach
EFESO implemented a three-pillar turnaround strategy combining restructuring rigor, operational efficiency, and leadership alignment.
Key initiatives included:
- Strengthening the Restructuring Plan – Analyzed operations, revised financial projections, and established a daily Restructuring Command Center.
- Operational Efficiency & Cost Reduction – Executed headcount reductions, redesigned sales and procurement processes, and optimized logistics, generating $3.5M in savings.
- Driving Execution Through Governance & Accountability – Daily performance meetings, CEO engagement, and cross-functional collaboration ensured rigorous execution and alignment.
Related Services
Operations Strategy and Transformation
Helping organizations rethink how they create value. We strengthen performance, build resilience, and accelerate growth across every layer of your business.
Procurement
Material costs and supplier volatility threaten profitability. We unlock savings through strategic sourcing, supplier collaboration, and digital procurement transformation.
Transactions and Turnaround
High-stakes situations demand rapid, decisive action. We stabilize and transform through operational diagnostics, cash flow optimization, and sustainable restructuring programs.
Facing Similar Turnaround and Restructuring Challenges?
- Experiencing declining profits, negative cash flow, or rising debt.
- Needing to strengthen restructuring plans with execution rigor.
- Seeking operational efficiency and cost reduction opportunities.
- Looking to align leadership and governance to drive sustainable performance.
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