February 2013

Platinum turn cons inve

Case Study

Case Study Turnaround and Sale Solved Owner’s Rapid Loss of Cash and Deal Fatigue

The owner of an IT services company in a mid-sized, Midwest market had invested heavily in the business but was losing money monthly. With little passion left for the business and struggling with what to do next, the owner’s wealth manager recommended that he call Platinum Group to stop the bleeding and determine next steps.

Within one year of Platinum’s involvement, bookings of recurring revenue grew by 50 percent and gross margins grew 30 percent. For the first time, the company was running above break even. It was then sold for $4.1 million to a strategic buyer. The IT services company’s owner was relieved to recoup the majority of his investment.

Read how Platinum helped a heavily invested owner recoup his investment.

Platinum In the News

Pat Brennan

To Improve Company Performance, It Helps to Follow Best Practices

"How is my company performing and what, if anything, should I be doing to keep on track?"

"That's a common question owners should ask themselves daily," writes Pat Brennan, a Platinum Group Partner in the November issue of Upsize Minnesota magazine. "Just like going on a trip, they know their desired destination – sustainable profitability and working capital sufficiency. Yet without a series of early warning indicators, they begin to lose altitude and can be headed for a crash before they have a chance to make a course correction and save themselves."

Read the full article online at

Platinum In the Community

John Hehre Elected to TMA Board

John Hehre

The Upper Midwest Chapter of the Turnaround Management Association (TMA) elected Platinum Member John Hehre to its Board of Directors in December. The TMA is an important organization for Platinum. Its members include fellow turnaround practitioners along with attorneys, lenders, investors and other related professionals. TMA also sponsors a wide variety of educational and networking events, from the Turnaround of the Year presentation to a night at a Twins baseball game.

"It is truly a target rich networking environment," according to John. Platinum has had a long and productive relationship with the organization for many years and John is pleased to carry on the tradition. He is a member of both the Program Committee and the Volunteer Committee, so you’re likely to hear from him at some point!

Getting to Know...Kevin Nieuwsma

Reflections on Last Year's Major Milestones

By Kevin Nieuwsma, Platinum Executive Consultant

One of the Nieuwsma family's 2012 milestone events was their daughter’s wedding. From left: Kevin, Gail, Kori, Jake, and Jordan.

As I look back and reflect on 2012 with Gail, my wife of 24 years, we both feel a deep satisfaction from the rewards of parenting. Last year, the Nieuwsma family celebrated two major milestones: our son, Jordan, graduated from high school and left home for college in the fall; and our daughter, Kori, was married in July.

A major chapter in our lives has concluded after years of watching our children grow up through academics, friendships, multiple sporting events, and learning how to make hard decisions. They've achieved many goals, discovered their passions and independently adopted our values.

As parents, of course, we had no idea how it would all turn out while in the midst of it. But it was fun — and challenging. We are pleased that Kori found her passion in nursing. While attending school in Michigan, she found her other passion, husband Jake, a great guy who followed her back to Minnesota. She now works at Gillette Children's Hospital in St. Paul. Meanwhile, Jordan is attending Concordia College in St. Paul where he is also playing football.

Gail and I are now adjusting to a quieter house and are busy discovering new hobbies.

Platinum Group
952.829.5700 • 9855 W 78th Street • Eden Prairie, MN 55344

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