ASSET MAXIMIZATION
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John D. Rockefeller introduced techniques that totally reshaped the oil industry, and he did this through asset maximization. In the mid-19th century, the chief demand was for kerosene. In the refining process, many byproducts are created when crude oil is converted to kerosene. What others saw as waste, Rockefeller saw as underused assets. He sold one byproduct — paraffin — to candlemakers and another byproduct — petroleum jelly — to medical supply companies. He even sold off other “waste” as paving materials for roads.

Today, many companies are sitting on assets that they don’t know exist or are vastly underutilized. This might be a brand or business service they haven’t discovered yet. Those overlooked assets might be talented people, or even digital resources that could be repurposed to generate a new revenue stream.

One of Pallas Partners’ greatest assets is being able to see around the corner for our clients. Our expert advisors are highly skilled at identifying all types of business opportunities through asset maximization strategy analysis and accountable execution. We help companies discover hidden strengths, then develop a clear quantitative business development strategy to maximize those strengths. We then help clients set short- and long-term goals, execution milestones and deliverables

 

CLIENT EXAMPLE:

Accent Marketing

Accent Marketing had been operating call centers for its customers for many years but was looking to diversify its client base. Pallas Partners led an asset maximization strategy for Accent Marketing that allowed Accent to redefine its mission and business model by capitalizing on the data collection already being done by its call centers. Accent now provides meaningful and analytics to clients, allowing them to earn a high return on investment.

Pallas helped us see that we are much more than a call center business, we are a professional services firm. Through their facilitation they helped us identify our core competencies and target a new and expanded customer base. By focusing on professional services, we are able to leverage existing facilities, extend our technological platform, penetrate new and existing clients without having to capture entire platforms, work with pilot programs and become thought and industry leaders by defining our space and domain.” Linda Ruffenach, President

 

Case Studies

CORPORATE RESTRUCTURE & REALIGNMENT
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Due to a changing industry landscape, economic challenges or a variety of other factors, a company may need to reinvent or transform itself to outpace the competition. To do so, a company will need to leverage existing strengths and cultivate new ones, free up capital and build on small wins, and ensure that its organizational culture is cohesive, working from the same play book and demonstrates the ability to deliver.

Pallas Partners can assist clients with a complete corporate restructure and realignment while avoiding the common pitfalls of such a total, complex transformation. Our proven methods can help drive significant, accelerated growth and position our clients for the future. Our experts will assess core competencies, assets, leadership and staff, financial statements and overall strategies.

Pallas handles all major aspects of corporate restructure and realignment to create new business models for our clients that are more efficient, competitive and sustainable.

 

CLIENT EXAMPLE:

Muhlenburg Community Hospital

Muhlenberg Community Hospital is a rural medical facility that faces dramatic challenges in doing business in the health care space as a result of new competition and technology, changing regulations and demographics and the implications of the Affordable Care Act. The hospital is still focused on its core business but must adjust the way it functions in order to increase efficiencies and realign the hospital as a premier regional medical center for the 21st century.

Pallas Partners was brought in by the Board of Directors to lead a restructure of the hospital and specifically to improve its corporate processes by creating operating efficiencies within the current structure. The realignment strategy employed is allowing the hospital to upgrade technology, take advantage of new services such as telemedicine, forge new strategic alliances and partnerships, repurpose sections of facility, shed unprofitable lines of business and reposition the institution to serve and thrive in today’s marketplace.

"Pallas Partners brought in a team and took control right away. The ability to use an outside team of executing resources such as Pallas was an incredible leverage and value proposition for the entire organization. We could not have turned the ship around as quickly or successfully had we not had the Pallas team on board." Steve Meredith, CEO

 

Case Studies

GENERATIONAL TRANSITION
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Statistics say that 30% of businesses pass from the first generation to the second, and only 13% make it to the third.

The process of transitioning the family business is first and foremost about managing relationships and expectations among family members.

Planning for business transition or succession is a subset of the broader planning process commonly referred to as “strategic planning.” The strategic plan ultimately is intended to be a written summary of what the organization hopes to accomplish, and how it intends to accomplish those dreams.

The business environment is fluid, and generational transfer (succession planning) is arguably one of the top challenges facing family businesses.

Succesful transition is not just about passing the business on; it is more often about change and change management as many of the historic processes, relationships, and structures are severely challenged and put to the test.

 

CLIENT EXAMPLE:

Commonwealth Roofing Company

Commonwealth Roofing Corp. has always provided a great product and maintained a stellar reputation in the construction industry, but the modest-sized, family-owned company had few solid business processes in place. Company leaders had been focused on roofing and not on building the business. Issues also had begun to arise surrounding internal communication and management that were causing discord between the two generations working alongside each other.

 

Pallas was able to identify the key issues that kept us from being the best we could be. We worked with them for two years, putting processes in place to position us for our first generational transition. Pallas helped us dramatically evolve our business, growing revenue 350% in two years. We are now positioned for long-term success. The results took longer than we initially thought, but it was well worth the investment in our company’s future.” Mike Sasse, President

 

 

 Case Studies

GROWTH
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All companies strive for sustained, profitable growth. One of the biggest problems facing today’s most successful businesses is simply managing their success. Leaders must be able to adapt to sudden growth by navigating the complex networks and systems within their company and quickly implementing any necessary process changes in order to meet demand. Many companies that are experiencing huge top-line growth don’t have the proper organizational processes in place to handle it.

The typical client that Pallas assists with growth strategy are companies that are facing enormous success, are outstripping initial projections, and possibly outgrowing their existing management team. Most managers lack the training or experience to manage explosive growth.

Oftentimes, when company leaders recognize a problem, it is too late. Some issues our clients have encountered during periods of tremendous growth include: problems with scaling the business, keeping up with quality and demand, and employee engagement. Another pitfall during explosive growth can be the need to add infrastructure or fixed costs for a temporary situation that ends up costing the business money once the situation abates.

Pallas Partners provides creative and analytical strategies to manage and maximize current growth, identify future growth opportunities, and overcome any external and internal barriers.

 

CLIENT EXAMPLE:

Restonic Sleep Products

Restonic recently experienced the unexpected and enormous growth of its mattress business. Pallas Partners worked with the company to develop practical, result-oriented strategies that have produced measureable results. Pallas was able to identify the choke points in the organization and helped the Restonic management team to realize the leadership role they play in the overall success of their business.

 

I have worked with Lewis, a Pallas advisor, over the past two years and have found his insight and experience invaluable in moving our business forward. Lewis has helped us understand the importance of open communication and transparency of actions in developing a group of leaders that can assess and form actions that will take our business towards its stated vision and goals.” Lee Quinn, CEO

 

Case Studies

PROCESS IMPROVEMENT & IMPLEMENTATION
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Many companies want to undertake programs to improve their core business processes and service delivery capabilities but don’t know how to get started. As a process implementation advisor, Pallas Partners’ role is to evaluate existing processes, make recommendations on new processes, craft an implementation plan, execute the new processes and monitor their effectiveness going forward. It lies at the core of all that we do.

The first step in our evaluation is to inventory all company resources, including human, capital, technological and operational assets. Pallas then will address gaps and deficits with resources and programs, stabilize financial reporting with visibility and transparency, and then address operating inefficiencies including processes, billing, business office and supply chain.

Pallas Partners works with our clients to install remediation strategies and create positive outcomes based on accountable execution. Finally, our trained advisors manage to milestones.

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WORKOUTS & TURNAROUNDS
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Turnaround management is one of the most intense and trickiest engagements for a strategic advisory firm. Turnaround management traditionally refers to the financial recovery of a company that has been performing poorly for an extended time. It may also be applicable to companies who are seeking to go to the next level of growth.

In order to effect a turnaround, a company must acknowledge and identify its problems, consider changes in management and develop and implement a problem-solving strategy. In some extreme cases, the best strategy may be to cut losses by liquidating the company rather than trying to turn it around. Once a company ceases denial and embraces its issues the opportunity for success exists

Many times a company is seeking to return to its glory, in others it may be seeking to achieve success and greatness for the first time. Strong knowledge of reorganizational strategies and associated options are the critical elements to Pallas when assisting companies achieve turnaround success.

 

CLIENT EXAMPLE:

Bert R. Huncilman & Sons

Bert R Huncilman and Sons is a 100 year old company that came to Pallas to help turn them around. At the time of the engagement, this once proud company found itself with an underdiversified customer base, a severely strained banking relationship, strained vendor relationships with declining terms, and an internal organization requires a major reset.

"When we brought in Pallas we were weeks, if not days, from having to shut the doors. The Pallas team came in and led us through the most difficult time our company had ever faced during its 100 year existence. As a multi-generational family business the ability to continue on to the next generation was very personal. We would not have made it through the past 3 years without Pallas and its leadership." Gordie Huncilman, CEO

 

Case Studies

ACQUISITION / DIVESTITURE ADVISORY
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In today’s business climate, many companies look to acquisition and divestiture strategies to create innovation and growth for their business. Many times, companies may have a target acquisition or transaction in mind, while others only have identified a target industry they would like to enter or exit.

Pallas Partners works with clients to identify and clarify opportunities and execute the transaction. Pallas can set valuation and terms of deal, perform due diligence, determine post-merger integration processes, facilitate change management, and negotiate with all principals involved. Pallas understands that the price tag of a purchase or sale is only one of the issues our clients must consider in the realm of acquisitions and divestitures.

Our highly trained advisors can help businesses determine if the price makes sense for them as a buyer or seller, what the unseen risks might be, how a transaction can be positioned to provide maximum financial and tax benefits. Pallas Partners does not focus on getting a deal done at any cost, but on making sure it is the best deal in optimum circumstances that best suits our clients’ needs.

 

CLIENT EXAMPLE:

V-Soft Consulting

Over the past two years, Pallas Partners has worked with V-Soft Consulting to acquire two companies that greatly expanded the firm’s geographic market, diversified their service offerings and added significant revenue to their top line. Within those transactions, Pallas negotiated terms, worked with principals and their representatives to facilitate the deal and structure the conditions of the transaction. Pallas also helped source the needed capital funds for our client.

"We have used Pallas and their deal team to make two major acquisitions. In both cases Pallas performed the due diligence, helped structure the deal, and led us to a successful closing. We are extremely pleased with the results both during the acquisition and in the post integration phases. We credit Pallas with developing very creative financing structures in order to get the deals done." Purna Veer, CEO

 

 

 

Case Studies

FACILITATED TRANSACTIONS
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CLIENT EXAMPLE:

Bailey Tools & Supply, Inc.

Pallas Partners assisted in structuring a deal for Baily Tools when the minority owner bought out the majority owner. The transaction consisted of a multi-year payout. Pallas was able to create the proper tax structure, set terms that allowed the new owner to take ownership immediately and put measures in place that protect the company’s ongoing business practices.

Pallas advisors worked with Baily Tools’ banks to ensure that its existing credit facilities would not be impeded because of the change in ownership. In addition, Pallas structured new credit facilities for the buyer to help finance current and future operations.

 

"Pallas was able to lead us through a very tricky and sensitive negotiation and deal structure. Without their advice, knowledge and ability to help secure new credit facilities I don't know that we would have been able to transition the company."           Steven Bailey, CEO

 

 

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SELL SIDE ADVISORY
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TRANSACTION STRUCTURING
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Pallas has tremendous experience in structuring deals in the best interest of our clients. We protect our clients from the unknown. Our expert advisors understand the nuances of structuring deals that protect sellers, who in many cases provide financing. Pallas works with your professional advisors and can help advise on the proper tax structure and business valuation models, as well as navigating the type of sale, necessary non-compete agreements, buy-back provisions, reps and warranties, along with a myriad of other clauses and conditions necessary to complete the transaction.

As a buyer, many companies may enter a deal that looks great on the surface, but when it is unwrapped, problems are discovered. Pallas Partners has deep experience in the pre-diligence stage and understands how critical it can be to uncover as many potential liabilities and contingency events as possible during the deal structuring and due diligence process. 

 Case Studies

CAPITAL STRUCTURE & FORMATION
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CLIENT EXAMPLE

Louisville Equestrian Center

Pallas Partners worked with Betsy Webb Stables to transform a 9-year-old riding academy into the multimillion-dollar, year-round recreational facility.

In 2009 Pallas helped Louisville Equestrian Center secure $3.4 million in financing to become a single-purpose riding complex with two large indoor riding arenas and a barn with 100 climate-controlled stalls. This enabled the Center to increase capacity to 100 horses, 500 clients and double the number of staff. Pallas also structured the debt to carry the business through the peaks and valleys of demand throughout the year.

Pallas was able to refine our business plan and identify future revenue sources, giving us the credibility to get financing for our expansion. Our riding academy and summer camps were doing well, but Pallas helped us identify eight business lines to branch off from our core business, including consignment sales of gear and equipment and selling billboard space on our barns that face major roadways.” Betsy Webb, Owner

 

 

Case Studies