Ingenium Technologies

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Engineering Services

Cherry Valley Tool, Inc.

Cherry Valley Tool Inc. (CVT) was a small machining company that specialized in vertical turning. They were in dire financial shape with the banks threatening foreclosure and suppliers demanding their accounts receivables. CVT’s president and owner wanted to sell the business.   Without a dedicated leader and with dwindling cash flow the company was headed for bankruptcy. At this point a prospective new owner and the bank approached Ingenium for help in turning around Cherry Valley Tool. Ingenium agreed to lead the task in bringing this company back to life.

Ingenium’s turnaround work involved two major activities. First, Ingenium would need to settle CVT’s business and financial issues and set up the new ownership structure. Ingenium management formed a joint venture with the new partner, negotiated with the banks for settlements on CVT’s notes, and convinced a vital customer to dramatically increase their business with CVT. Secondly, Ingenium’s Operations Consulting team would use their technical expertise to lead CVT through a dramatic and very rapid production turnaround. Over a six month period and with a minimum disruption to production, Ingenium’s Operations Consulting team:

  • Planned and executed the entire move of the facility to a new location
  • Assisted in hiring, training, and integrating 40 new employees
  • Specified, ordered, and installed over $2.0M in new machinery and equipment

Results of Ingenium Services

 

Before

After

Annual Sales

$1.8M

$6M

Employees

17

57 initially with Ingenium help, 93 at full growth implementation

Facility

50,000 sq.ft.

125,000 sq.ft.

Machines

50

62

Financial Health

Bankruptcy

Thriving

 At the conclusion of the turnaround Ingenium was successful in implementing both the business and technical services required and CVT’s financial health went from bankruptcy to thriving.