Success Stories.....
Interim Management
Challenge: A bank-owned private equity firm inherited ownership of a $200 million Oklahoma-based processor of animal byproducts. Spun off from a NYSE-listed parent several years earlier, the company's revenues and profits had since languished. Marginally profitable for three years, the CEO resigned. Faced with a threatened strike, the new bank owner sought new leadership to position the company for an exit.
What We did: Assuming control as Interim CEO, C.T. Moffitt & Company installed new management information systems (and a CIO), revamped financial reporting, negotiated the first ever incentive-based contract with the company union, secured a new line of credit, and led the company to profitability.
Results: Moffitt stabilized the company's finances and arranged sale of the company to a New York merchant bank by means of an industrial revenue bond financing and simultaneous refinance of senior bank debt.
Turnaround Management
Challenge: An importer/manufacturer of over 3000 small hardware products suffered from poor budget controls and lagging sales. Asked to increase their bank line, the lender refused, introducing C.T. Moffitt & Company to help the company revamp its reporting and controls.
What We did: Installed as the company's CFO, C.T. Moffitt & Co. embarked on a strategic planning exercise that produced a long range plan followed by yearly budgets and quarterly reviews. Moffitt brought in venture capital investors with an investment that tripled the company's capitalization. A board of directors was formed, and over several years senior debt was refinanced three times, rising in parallel with rapidly advancing sales from $5 million to $30 million. Along the way, Moffitt quarterbacked three acquisitions that added $25 million in revenue.
Results: Sales rose from $5 million to over $77 million during C.T. Moffitt's tenure with the company as CFO, consultant, and board member.
Value Creation
Challenge: The owner-operator of multiple microwave licenses in the 38Ghz spectrum (formerly head of the President's Office of Telecommunications) was killed in a tragic river rafting accident. C.T. Moffitt & Company was engaged to position the company for a high value sale.
What We did: Acting as board member, corporate secretary, and consultant, C.T. Moffitt mediated disagreements among acrimonious shareholders. In a series of transactions over two years, assets were divested to various high-flying telecom companies seeking additional licenses in the 38Ghz spectrum. Radio assets remaining unsold were rolled into joint ventures with other companies, then built out and managed by the venture partners.
Results: Carried on the books at less than $200,000 at the beginning of C.T. Moffitt's tenure, many of the company's radio licenses were sold to various public entities at a valuation exceeding $35 million. The small remainder are currently managed by partners, generating an ongoing income for shareholders,
Value Creation
Challenge: C.T. Moffitt & Company was engaged to direct the startup of an Internet auction company with the capability of managing thousands of auctions simultaneously and fulfilling hundreds of orders daily with merchandise tested and refurbished on the company's premises.
What We did: As President of the auction company for six months prior to launch and six months thereafter, C.T. Moffitt supervised integration of the auction software with development of the back-office fulfillment capability. C.T. Moffitt also formulated the company's marketing strategy, media program, and advertising/public relations approach.
Results: The new auction company attracted nationwide attention, including articles in the New York Times and an appearance on the NBC Today Show. Five years later, with several hundred thousand registered users, the company is still growing.