Case Studies
Case Studies

Construction Company in need of Financial Restructuring, Leadership Coaching, Team Building and Strategic Planning

Assessment Summary:

Construction Case StudyThis four decade old construction company had been purchased at the cyclical peak from the founder by its successful sales manager. Subsequent to the purchase, the construction market collapsed, exposing cultural and planning weaknesses exacerbating the significant decrease in sales and profitability.

The loss of market momentum and lack of strategic direction resulted in the need to annually fund operations through financing provided by its investor board. With each round of financing, the board became more fatigued and the operating owner’s equity interest continued to be diluted.

The operating owner sought See Change Management’s Phase I assistance to undergo team building and strategic planning and to develop a financial restructuring plan to return the Company to profitability.

The operating owner then approached See Change Management to assist him in a Phase II project to financially restructure the Company's excessively leveraged balance sheet to position the organization to take advantage of the impending market rebound.


See Change Management’s Phase I engagement focused on:

  • Developing/implementing a financial restructuring plan providing for sustainability at a significantly reduced volume level

  • Leading a market based, strategic planning process with the leadership team, focused on re-establishing the organization’s market presence

  • Introducing a team building model detailing the trust, conflict, accountability, commitment and focus on results necessary for organizational success

  • Preparing quarterly/annual reporting packages creating transparency for the investor Board

  • Developing cash management tools allowing the Company to sustain liquidity challenges associated with seasonality of the business

  • Coaching the business owner in all aspects of leadership and personal development

See Change Management’s Phase II engagement focused on:

  • Creating a “fresh start” balance sheet allowing the company to obtain traditional financing

  • Positioning the operating owner with a strategy to obtained required concessions from the investor board members  

  • Spearheading the negotiation and documentation with key legal/tax/accounting intermediaries of the financial restructuring



As a result of the above evolutionary process:

Following is a summary of the balance sheet impact of the Phase II initiative

      Balance Sheet Restructuring
Before After
Shareholder Debt: $ 1,121 $ 170
Other Debtors: $ 150 $ 150
Total Debt: $ 1,271 $ 320
Shareholder Equity: $ 920 $ 1,770
Retained Deficit: $ (1,770) $ (1,770)
Net Equity (Deficit): $ (850) $ - 


The net impact of the restructuring was the forgiveness of a majority of the company’s debt  combined with the transfer of 100% of the equity ownership to the operating owner

Based upon the restructured balance sheet, the Company was successful in obtaining its own line of credit facility

The Company remains challenged, post restructuring, by a number of external market and internal cultural forces. See Change Management’s multi phased engagement has provided the operating owner with the time and flexibility to regain control of his business during this significant period of financial challenge.   


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Company Feedback:

"I knew I needed help.

" I was too close to my business and I needed an objective, professional perspective to change our entire organization's attitude.

"Mike led us through a planning phase that allowed us to move beyond our historical perspective of who we were to what we could, and needed, to be. Our timeline was very aggressive, but maintaining a sense of urgency was critical to keeping our staff engaged.

"Our team is now familiar with what it takes to be successful. We are working together at a much higher level that just a few weeks ago. The constant with Mike is that you should be ready for change, including understanding that change must be led from the top!

"Mike continues to work with me in my evolution as a leader. He prepared for us our first annual financial plan. Now I don't know how I could ever have led my business without one.

"See Change Management is responsible for the current evolutionary changes that are providing my company with its best chance for success. Mike continues to play an important role in my leadership and our company's progress. He develops relationships with his clients that transcend his initial assignment. The benefits of Mike's work are evident daily. We should have engaged him sooner!

- Construction Company CEO and Owner

"Your guidance and leadership coaching helped us improve our operations, become leaner and operate more efficiently.

"Introducing us to your Team Building model really opened the eyes of management and staff, and helped us to get on a path of success.

"I am happy to report that with your help, we are meeting regularly, trusting one another, having productive conflict, committing to challenging goals and being held accountable for them, and paying attention to the details and productive results. Without your guidance, I believe our firm was on a dead end path."

- Construction Company Vice President and Owner

The Breakthrough Company-How Everyday Companies Become Extraordinary Performers McFarland, Keith R., The Breakthrough Company-How Everyday Companies Become Extraordinary Performers, New York, Crown Business, 2008, L, C

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