CHALLENGE –
Over the last 10 years, there have been major changes in the advertising, marketing, and public relations space. A good, overarching description of this change is the transformation of an ADVERTISING MONOLOGUE (where brands were in control of one-way messaging and advertising that consistently created awareness, attraction, and sales) to a MARKETING DIALOGUE (where brands anticipate the needs of their customers and manage/influence the conversation through technology, thought leadership and tactical execution). Two long term, successful organizations, with great reputations had a desire of creating next generation sustainability and value. While both organizations were dealing with preserving legacies, as well as key associates that want/need to roll off, both had market opportunities that would benefit from immediate action (combination).
ACTIONS –
Mergers tend to be more challenging than acquisitions and evaluation work is much broader than how the two companies perform financially. Thus, the initial focus was to understand and define each company’s “true” (vs. perceived) strengths and then place priorities on what would drive the decision-making process. The product of such work enabled PH Consulting to structure the engagement in a customized way based on the priorities agreed upon by management: Detailed Cash Flow Forecasting, Operational Efficiency Analysis, Future Equity Structure and Legacy Partners Transition (exit).
RESULTS –
PH Consulting brought awareness to the need (and importance) for greater sophistication with Cash Flow Planning (Rolling 13 week + Annual Cap Ex) and created tools for management that will be used post transaction. This enhanced financial view also served as the rudder for the revamped equity structure as well as legacy partners exit. Lastly, the extensive analysis created a road map for management execution of the Integration Plan + brought to the surface operational deficiencies which, when addressed, will yield a reduction of waste, increase profitability with improved associate work life that will attract and help retain talent into the future.