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Valor Leadership Partners is a member of the Turnaround Management Association.

Service/Manufacturing -- Metal Recycling

Revitalization of a Metal recycling company

A bank client engaged us to liquidate a $25 million metal-recycling business. The bank had stopped funding, and expected a $3 million loss. The relationship between the bank and the business owner was antagonistic and seemed irreparable.

Starting our relationship with a thorough evaluation of the business's status and prospects, our principal spotted a hole in the internal controls that revealed embezzlement. With our involvement, the owner stopped the fraud and recovered some of the stolen funds. Having negotiated a sixty-day extension from the bank, we worked with the business owner to create a repayment plan that saw the bank repaid in full, with interest, in three years. (In order to facilitate the plan, and with the bank's approval, the firm was hired directly by the owner.)

Our turnaround plan included operational improvements which were immediately implemented. Environmental cleanup, routine maintenance and equipment upgrades were all key parts of the plan to significantly improve profitability and reduce risk. For over a year after the resolution of this crisis, our principal consulted with the business and facilitated its rapid growth.

Instead of liquidation, our professionals were able to rehabilitate the company and repay the bank in full. The firm was awarded the 2002 Turnaround of the Year award from the Atlanta chapter of the Turnaround Management Association, and is now a highly profitable $200 million business.