Case Study

CLIENT: Organic Dairy Business

CHALLENGE

Committee management, no clear focus or direction and a cash crunch that forced the company to concentrate fully on short term issues.

THE APPROACH

Provide an interim CEO to improve investor, staff and management communication. Secure new funding from current investors while searching for new funding sources. Reduce operating costs and negotiate new payment schedule with suppliers.

THE RESULT

· Substantial reduction in executive payroll

· Open candid shareholder meetings led to new funding

· Supplier payment schedules negotiated that freed the gridlock in the distribution channel

· Discussions with potential partners and or purchasers led to a more realistic long-term strategy

· Inconsistent product quality led to cancellation of the dairy contract in the U.S. preserving the corporate reputation

· The above measures allowed the company to survive on minimal cash while a partner or buyer could be identified

· Purchase by a major Canadian company has allowed this unique product to increase market share across Canada and in the U.S. Founders and initial investors received first ever dividends