Archived Profitability Success Stories
OUR SOLUTION: Share the Knowledge – Empower Each Client
We introduced Martin to another Kelley Boshell Toole & Ellison client with a proven track record of high-tech start-up successes. Although the "techster" was busy in her own new venture, she was able to guide Martin on the nuances of structuring a new business-to-business Internet application.
RESULT:
Martin raised “seed capital,” assembled his Development team, and built his prototype Web site. He is currently negotiating for mezzanine financing as a precursor to establishing beta sites.
OUR SOLUTION: Let Us Handle Your Non-Routine Projects
We managed an exhaustive search to locate the best person for William’s company – our effectiveness in performing this role for William was a direct result of our ongoing communications and two-way sharing of information. We found two qualified candidates for the scientist position from a series of web postings, response follow-ups, and detailed interviews
RESULT:
Without missing a beat in his “business as usual” operations, William now has a qualified scientist on the payroll.
Archive Success Story #3 – Loss Protection Through Specialty Insurance
BUSINESS CHALLENGE: Loss Protection – Inferior Manufactured Goods
John is a middleman who earns his profits by matching customer product needs with manufacturers. Increasingly, the items he sells are manufactured outside the U.S. where it is customary to require full payment for merchandise prior to shipment.
In recent months, two separate orders of merchandise were of inferior grade when received by John's customers. Since these orders were shipped directly by the manufacturers to the customers, John felt he was entitled partial reimbursement from the manufacturers for the cost. Unfortunately, the manufacturers did not agree. Since the customers would not pay for inferior merchandise, John lost the cost of product manufacturing and shipment he was forced to prepay.
When John came to Kelley Boshell Toole & Ellison for help, we enlisted the help of a sophisticated insurance broker on John’s behalf. John purchased an insurance product to essentially guarantee the quality of imported merchandise by documenting minimum acceptable product specifications in the purchase agreement.
RESULT:
John could enjoy the peace of mind that comes from being protected if inferior goods resurface in his dealings with foreign manufacturers.
Archived Success Story #4 – Business Valuation
BUSINESS CHALLENGE: How Much is My Business Worth?
When Andrew led the charge to buy his manufacturing division from its conglomerate owner, he allowed his management team to participate. Three years later, he was forced to fire the plant manager, who demanded what Andrew perceived to be an unreasonably high price for his shares. The plant manager's advisors built a case for the high stock value using unusual post-takeover cost savings individually orchestrated by Andrew. Profits stemming from these cost savings were non-recurring. Andrew felt he was being beaten with his own stick – but he couldn’t prove it.
OUR SOLUTION: Accurate, Indisputable Business Valuation
We valued the company by comparing it to publicly-traded companies in the same industry based upon sales and financial ratios such as profit margin and debt-to-equity. Our recommended stock value was one-third (1/3) the value presented by the plant manager – the results could not be successfully refuted.
RESULT:
Andrew bought the plant manager's shares for $1,500,000 less than the plant manager originally demanded.
Archived Success Story #5 – Pricing and Margin Analysis
BUSINESS CHALLENGE: Pricing and Margin Analysis – With a 3-Day Deadline for Action!
Herbert is the President of the U.S. subsidiary of a global manufacturing concern that makes high-profile adhesive products. Herbert contacted us with an emergency request for a product pricing and margin study that he could use to make viable recommendations when he attended a strategy meeting at the global Corporate headquarters.
OUR SOLUTION: Adjust Pricing to Better Reflect Market Reality - Cut Cost Where Feasible
Time was of the essence in assisting Herbert since he was leaving for the meeting within days. We responded immediately, performing an extensive profitability analysis for two of the key products in question. Our analysis revealed that Herbert should cut the price for one product that is already in the sunset period of its product life cycle. On the other hand, we recommended aggressively increasing the price of the other more popular new product, which was enjoying a strong market position.
RESULT:
Herbert used our detailed profitability studies and recommendations to create his “pitch” at the global strategy meeting.
Success Story #6 – Protecting Cash Assets During Risky Times
BUSINESS CHALLENGE: Cash Held in Banking Institutions During Risky Times
Kelley Boshell Toole and Ellison maintains regular contact with its client base to ensure all their financial and business assets are protected and success is maximized. Dwight had multiple millions of dollars in cash on deposit at a single banking institution, risking loss if the bank fell on hard times. We had spoken with Dwight in the past, advising him to distribute his cash in a more prudent fashion – he had been reluctant to take action.Success Story #7
OUR SOLUTION: Leverage Current Events to Convince Procrastinating Clients to Take Action
After the FDIC takeover of IndyMac Bank in July 2008, we used the opportunity to convince Dwight to distribute his cash assets in a more protective manner. We advised him to “ladder” his cash into a series of CDs at different banks so all his principal would be FDIC-protected.
RESULT:
Dwight promptly took action this time, and managed to protect his cash just before the economic crisis resulted in more sleepless nights.
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