|
|
Viability Analysis
The Process - The first phase of most Lake Pointe engagements is the viability analysis. During the viability analysis, Lake Pointe reviews all operational and financial aspects of the business and works with management to put together a profit enhancement or turnaround plan that will substantially improve the profitability and cash flows of the business.
A typical viability analysis will encompass the following steps:
Operations Assessment:
- Analysis of product costs and gross margins
- Review of purchasing methodologies
- Review of inventory controls and materials handling
- Review of product quality assurance processes
- Review of multiple location rationale and cost-effectiveness
Sales & Marketing Assessment
- Assessment of sales and marketing strategies
- Review of effectiveness of salespeople and sales rep management processes
- Review of compensation structures and incentive programs
- Review of product line, completeness, and product pricing methodologies
- Rudimentary market analysis
Finance, Accounting and Personnel Assessment:
- Preparation/review of detailed cash flow projections and breakeven analyses
- Assessment of inventory and accounts receivable
- Analysis of asset conversion opportunities
- Assessment of continued vendor risk
- Review of selling, general and administrative expenses
- Management skill set assessment
 At the conclusion of the viability analysis, we present to management in executive review format, an independent assessment of the viability of the company and a clear “road map” for the next course of action to take (i.e., the profit enhancement or turnaround plan). A binder of detailed supporting documentation is also prepared and available to those interested in their own analysis. If a particular conclusion becomes obvious prior to completion of our usual analyses, we will convene with you immediately to explain our conclusions and plan how to move forward. |
|
