Case #450

$90 million multinational manufacturer

The firm is a maker of engraving machines and distributor of engraving-related materials. Morris-Anderson & Associates was called in to assess the 2003 budget and liquidity of this multinational with 12 subsidiaries, and evaluate the current CFO.

Our crew performed a situation analysis and implemented a weekly cash forecasting model. After evaluating the current CFO, we put an interim CFO in his place. We then improved the company’s liquidity by driving significant reduction in A/R. Our next task was to prepare revised operating plans, help recruit a new CFO and corporate treasurer. We also developed a more meaningful monthly financial package.

The results? A new CFO and Treasurer have replaced our interim CFO, and the weekly cash forecasting is now a recurring event. And the company is meeting its current principal and interest payments while providing the foundation to restructure debt and covenants.