Changes in Economic Trends
Construction Equipment Sales Business
The Situation
- Management consultant hired Lucrum to investigate financials after struggling to identify where cash was being spent given the relatively healthy profit margins of the business.
- Business owner was distracted and not actively managing business; did not account for changes in trends and economies nor did he adjust his lifestyle to accommodate reduced disposable income.
The Solution
- Analyzed 3 years of financials to identify discretionary expenditures paid using company funds.
- Identified both personal/luxury spending as well as frivolous/wasteful spending on behalf of company.
The Results
- Management consultant used this information to help client restructure business, successfully preserving significant portion of the client's net worth.
- Worked with banks to restructure loans and refinance various debts to maintain healthy cash flow while accelerating payoff dates.
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