The Issue and the Need: Fear of debt. Client wanted to grow their $9 million food manufacturing business to $16 million, followed by selling the business. This required:
- financial restructuring,
- building a new plant
- expanding sales force to attract large customers
- preparing the business for sale.
Client’s fear of assuming debt to undertake these actions was causing lack of investment in the company, no growth, slow path to failure, plant was not built for food manufacturing, in rural Illinois, agricultural contamination. [clean this up]
What I Did: Collaborated with the Operations advisor/consultant and outside financial institutions to address and overcome the owner fears about debt and create with him an empowering context for the role of debt in the financial structure, restructuring and desired growth of his business. Bank illustrated the positive effect of a loan sufficient to build a modern, efficient, and state of art plant and hire top quality sales team that would attract large customers from Europe and the US to achieve the $16 million goal.
Result: The owner was able to make choices to pursue company growth despite his fears. At one point, the owner conveyed that he was able to proceed despite his best judgement (based on fears). The owner’s father (the founder of the company) observed that I “asked good questions” and that “we need you on the board!” Subsequently, the company engaged a financial institution who not only managed the loan, but also identified a buyer who paid $15.8 million for the business. The profit from this sale enabled the client to fulfill a lifelong dream in creating a not for profit organization with a mission to provide support and homes for orphans from eastern Europe.