TURNAROUNDS AND RESTRUCTURINGS
There are common business elements among all industries, and yet there are differences as well, even between businesses in the same industry. In the decades of turnarounds performed by personnel of SOS, every case has had its own unique situation and solution. SOS must also have available at its disposal a diverse set of business skills and tools to go along with the experience to apply them correctly and efficiently. Following are some true-life case studies that demonstrate SOS’s strategic capabilities in action.
SOS was hired by a small business that was very near bankruptcy, having neither funds nor resources to continue operations. It hired SOS to help. SOS found latent within it a product for which there was a possible market. SOS’ solution was to approach a large potential customer in an industry that was captive to an international patent. SOS helped break that worldwide patent stranglehold on behalf of its client and then negotiated a supply contract with the client’s customer subject to higher quality standards and better pricing over the customer’s present suppliers. SOS then leveraged a written supply contract to then acquire the funds needed to build the manufacturing facility and operational structure for its client. The client was successful in its endeavor and became the favored supplier that met or exceeded all quality and contract performance requirements. SOS found and optimize a latent opportunity to create a true win-win, long-term solution for its the client. The client business later sold in the market for 50 times the customer backed loan.
The Cart Before the Horse
A company had lost its core business offering. Seven different competitors developed over a few years from its own work force, despite non-competes and non-circumvent agreements. SOS recognized the value of organizational structure and personnel, regardless of the loss of the purpose of the business. This view defies standard business logic. SOS found a new business opportunity which to apply the structure and personnel. That company was then hugely successful and continues so today.
What is Bad for the Gander, may not be Bad for the Goose
Often business opportunities come in industries that are in a downturn. When the semi-conductor business went into a tailspin in the first of this century, SOS saw the opportunity to amass skilled workforce and equipment for a startup client. That business was immediately successful and continues to be so 16 years later. Not every business needs to go in the same direction.