The most critical period in an enterprises’ lifecycle is the time of business crisis. When business circumstances put the organization at risk of insolvency, takeover, or replacement of management a definitive solution must be devised and implemented immediately. LoBue's crisis management programs identify the core issues, provide quick actionable solutions and guide the organization back to competitive health. Our program begins with a two week problem identification and resolution plan followed by implementation management. Solutions have produced 300% to 900% improvement in market capitalization.
BUSINESS TURNAROUND PROGRAM
LoBue's proven process:
- Assessment of core issues and prioritized action plans
Solution task management
- Within two weeks LoBue has the problem identified and solutions in front of management for action
- The LoBue team mobilizes the management team and organizes "do it now" initiatives that have immediate results
- While short term "do it now" initiatives are in progress a longer term Recovery plan is developed and implemented. This includes a long term strategy for the ongoing success of the enterprise
- LoBue was commissioned by a southwest Savings and Loan when the Bank was under a supervisory order and the stock price plummeted from the teens to under $3.00 per share. Our action plan assisted Bank management in resolving regulatory issues, introducing an aggressive plan for growing fee-based services, improving the efficiency ratio from over 70% to 51% and launching new asset-based products. The Bank was later acquired for $28.50 per share.
- LoBue was engaged by a major transaction processing company to assist in a turnaround of an IPO gone astray. The stock was selling at half of the offer price and a new management team was recruited. LoBue conducted an intensive Business rationalization program which resulted in direct cost reductions of over $50 million dollars, developed the insight for sale of a poorly performing division and witnessed the stock recover to $22.00 in 18 months. This enterprise was subsequently acquired at $34.00 per share.
- A major Middle East Bank was in the position of being linked to a global failed asset growth program. Regulators from several districts including the US were pressing this institution for dramatic operational changes. LoBue Group was engaged to completely restructure the Bank. In 18 months this major institution was brought into compliance on all international requirements, operations were re-engineered resulting in significant reduction in direct operating expenses and growth in domestic consumer business. An IPO analysis showed that LoBue has improved the potential market cap of the enterprise by $900 million USD.