BACKSTORY: A company had been an industry leader for more than three decades, reconditioning and optimizing diesel engines valued by the marine industry and stationary power plants. At its peak, the organization maintained a state-of-the-art facility and was the go-to service provider for many fleets in North America and around the world.
PROBLEM: Large repair contracts it had previously secured began going to competitors, internal leadership was unable to reverse the situation, and the company was in desperate need of both financing and a strategic plan.
TAP SOLUTION: After doing their due diligence, TAP determined many of the company’s issues originated with the CEO and recommended a Chapter 11 reorganization to the senior lender that included a series of necessary changes.
Onboarding of vetted C-level executives focused on sales and customer relationships
Transition from family to professional management that benefited both the proprietor and lender
Reduction of under-performing staff and overhead expenses
Improvements to the customer relationship through regularly scheduled meetings that presented best practices in vessel service management
Re-positioning of the company’s previous leadership status and ability to service a variety of engine brands
Leveraging of corporate experience and contacts to acquire new customers and penetrate high-potential markets
Regaining and growing credit lines with OEM suppliers
Developing, through an internal training program, and recruiting top technicians and engineers that offer clients expertise in all project phases
Tighten internal procedures and controls for scalable growth
RESULTS: An increase in business opportunities that required the addition of an engineering team is expected to result in the doubling of annual revenues within five years. Properly positioned for growth through acquisitions, the company is also a candidate for trade or sale, with an independent third-party valuation of nearly $16 million USD.
Case Study: Aerospace Industry
BACKSTORY: A holding company was comprised of two entities that were incorporated in the 1940s. Both produced niche parts for companies within the aerospace industry.
PROBLEM: The reputation of one of the entities was beyond repair, impacting operations, and causing the company to file for bankruptcy protection.
TAP SOLUTION: TAP performed a “bolt-on acquisition” as a means of rescuing the company and restructuring the outstanding loan facility.
Purchasing the company out of bankruptcy
Assimilating management teams and assigning post-acquisition responsibilities
Securing multi-year contracts with blue chip counterparties that included Boeing, Spirit, and General Atomics
Providing on-site accounting and reporting support to both companies
Delivering human resources services that improved ease of access for employees and contractors
Creating an internal sales process that incentivized employees and eliminated the need for unproductive sales representatives
RESULTS: As a result of these actions, the company rebounded and subsequently received third-party valuations of $15 million USD.
Case Study: Solar Industry
BACKSTORY: A solar installation company that had been focused on marketing its units to residential clients attempted to change its business model.
PROBLEM: In the pivot toward installing solar gardens for communities, the company encountered numerous problems that threatened the viability of its business as it sought a new market for its product.
TAP SOLUTION: TAP’s principals completed a top-down restructure, reviewing all aspects of the business and implementing a private equity-style turnaround. At the request of the senior lender, the restructuring included:
Replacing nearly all employees, including the CEO and CFO
Moving operations to Denver to take advantage of that area’s booming commercial solar market
Developing solar software revenue streams that also deliver internal added value through data-driven solutions
RESULTS: Through these actions and the resulting improvement in the company’s capacity, TAP’s restructuring team increased revenue from less than $9 million USD in 2018 to more than $20 million USD a year later. This helped the company earn a third-party valuation of nearly $71 million USD.