CONTACT US
Do you have any further questions? How can we help you? Get in touch with us.
Rob Carringer
Managing Director, Other Professionals
Rob Carringer held interim leadership roles and led projects in distressed and underperforming companies to improve operations, grow revenue, increase EBITDA, and reduce working capital in a wide variety of industries.
John R. Gordon Jr.
Senior Managing Director | Partner, Partners
John Gordon has more than 25 years of diverse business experience demonstrating an ability to bring deep financial and analytic skills along with a passion for operational improvement to difficult situations.
William Snyder
Senior Managing Director | Partner, Partners
With executive and entrepreneurial experience spanning close to 40 years, William Snyder has restructured, managed, and guided a multitude of companies in a wide variety of industries.
- Repaired lender confidence
- Improved Order-fulfillment results
- Reduced aged receivables
The client is a private equity-owned industrial distributor of abrasive products, equipment, safety and environmental products and services. The company was unable to avoid a financial-covenant default caused by poorly integrated acquisitions and warehouse management, as well as dropping oil prices. CR3 performed an assessment leading to being hired as interim COO to implement extensive recommendations including improvements to cash and inventory management and internal management and controls. CR3’s on-site presence stabilized operations and provided owners and lenders with improved confidence and the ability to recruit and onboard a new CEO.
The Situation
- Private equity-owned industrial distributor that provides surface-preparation media and equipment, safety items, PP&E products and equipment rentals
- Company operates 12 locations and completed two major acquisitions that were poorly integrated; company was negatively affected by an incomplete ERP implementation and a poorly-executed warehouse consolidation
- Drop in oil prices led to 13% decrease in sales and 40% reduction in TTM EBITDA; management team’s efforts were not enough to forestall a financial-covenant default
The Work
- Engaged to perform four-week operational assessment, which led to being hired as interim COO to implement extensive recommendations
- Created and tracked monthly operational KPIs; led effort to reduce past-due accounts receivable to generate cash; instituted improved inventory-management practices; and put in place the previously incomplete ERP system changes place
- Supported new CFO in managing cash and creating lender deliverables, evaluating M&A opportunities, standardizing customer contracts and establishing a new supply chain for its principal product
- Assisted private-equity owners with sourcing, evaluating and onboarding new CEO
- Following implementation of initial assessment recommendations, conducted four-week sales-function assessment to address top-line weaknesses in the business, providing roadmap for new leadership and a smooth transition
The Results
- On-site presence during the engagement helped stabilize operations and provided the owners and lenders sufficient confidence to execute a financing amendment and relax financial covenants for an 18-month period
- Order-fulfillment results improved with conservative final results at 98% shipped complete, over 99% shipped damage-free and over 96% invoicing accuracy
- Reduced aged receivables to 16% from 36% provided over $3MM in working capital
Explore Insights
View All
News
CR3 Partners Opens Los Angeles Office and Adds New Partner
CR3 Partners is delighted to announce that Tim Skillman has joined as a Partner of the firm and will be heading the new CR3 Partners Los Angeles office.
News
New Partner and Two More Executives Receive CTP Designation
The CR3 Partners Board of Managers is delighted to announce that James Katchadurian has been promoted to Partner with the firm.
External Link
CR3 Partners Advises NEOPS Alongside SSG Capital on Sale of Debt
SSG Capital Advisors, LLC (SSG) acted as the investment banker to New England Orthotic & Prosthetic Systems, LLC and its affiliates in the sale of all of its outstanding senior debt to AHM Healthcare Strategies (AHM), an affiliate of Eschen Prosthetic and Orthotic Laboratories, Inc. (Eschen).