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Case Study

International Consumer Electronics

Design, sourcing and wholesale distribution of audio and video components.

Revenue

$350 million

Industry

Consumer Electronics, Wholesale Distribution, Direct-to-Consumer

Services Provided

Turnaround & Business Restructuring, Capital Sourcing

Situation

Iconic brand in consumer electronics and audio equipment. Breakdown of major branded joint venture relationship resulted in needed downsizing of operations from prior $1 billion plus revenue run rate to roughly $350 million. Company was incurring significant operating losses because of semi-fixed overhead cost structure and cost of sourcing product. 

 

Accomplishments

  • Served as chief restructuring advisor to the founder and assisted operating management team in evaluating strategic options, downsizing cost structures, working with founder to assess options for redesigning the business model.
  • Conducted a break-down analysis of core products to negotiate improved cost structure from vendors on key products.
  • Assisted with interim financing facility, negotiations with vendors, and cash management to bridge to the downsized business.
  • Assisted with investor meetings to help recapitalize the business.
  • Assisted founder with evaluating options and initial efforts to open new sales channels.