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August 2013

Platinum turn cons inve

Transition Case Study

Case Study Economic Downturn Provided Impetus for Successful Transition

A construction company experienced unexpected financial difficulties as a result of the economic downturn of 2008 - 2010. Two of its divisions were losing money and in need of cash, reorganization or both. Development projects in other states had failed. One partner wanted to retire but the other wanted to stay; yet there was no succession plan in place. The realities of the banking and real estate industries put the business under tremendous pressure. Based on a referral from a previous client, Platinum Group was called in to help restore and realize value in this critical transition.

Challenges:

  • The business had essentially run out of cash.
  • Payment default on millions of dollars in loans with several banks was looming.
  • Personal guarantee exposure threatened to bankrupt the owners.

Read how Platinum Group’s helped owners avoid loan default, restructure to generate cash and pave the way for succession.

Platinum In the Community

Habitat for Humanity Project allows Platinum to "Pay It Forward"

Photo caption: The Platinum Group construction crew, from left to right: Roger Elias, Ken Ritterspach, Bob Cass, David Williams, John Hehre, Liz Deidrich, Paul Heggestad, (Habitat site supervisors Katie Ulwelling and Miriam Thomas), and Rod Peterson.

On a 90-degree July day, eight members of Platinum Group were busy installing insulation into a Twin Cities Habitat for Humanity house in West St. Paul. In doing so, they were supporting the 2013 Entrepreneurs House project, which brings together 40 to 50 entrepreneurial companies, investors and advisors to complete a home for a low-income family. Other tasks included sealing the walls with plastic, mixing concrete, setting footings for the front porch and installing an egress window in the basement.

"I choose to work on Habitat for Humanity because I know that I am helping someone less fortunate, making their lives a little better," says Roger Elias, a Platinum associate. "I do believe that we are all here to give back and pay it forward. It is always a day where I can actually see progress in what I do."

For more information about the Entrepreneurs House project, visit the Entrepreneurs House project.

Platinum In the News

John Hehre

Minco Learns to Listen So People Will Talk

Some pretty amazing things are happening at Minco these days, according to John Hehre, Platinum Member and author of a recent article in MA Insider, the e-newsletter of the Manufacturers Alliance. Minco is a mid-sized private company with about 600 employees worldwide. The company designs and manufactures flexible circuits, sensors and instruments and heaters. (Note: Minco is not a client of Platinum Group.)

John wrote: "Sales people are seeing opportunities that weren't visible a few years ago. Former customers are taking another look. Work in process inventory has steadily declined. Scrap is down dramatically. More products are going out the door with few additions to headcount. There is more vacant space on the production floor. And the list goes on."

How did Minco achieve such impressive results? Read the full article.

Getting to Know...Bob Stewart

Rocky Mountain Way

By Bob Stewart, Platinum Partner

Bob hiking the Continental Divide

Every July for most of the last seven years, a group of friends organized by my law school housemate has spent three or four days hiking along the Continental Divide in Colorado. We camp in remote areas and enjoy the beautiful vistas of the Arapahoe National Forest. The group stays in areas that can't be found on a map, but which we call Pete Park, Hell Hole and Coyote Park. Sleeping on the ground does not get easier with age, but we have avoided the scourge of dehydrated meals by having real food brought in by packhorse. It's the best of all worlds. Everyone in the group has certain responsibilities for the journey. Mine is good weather because they think I have more sway with God than anyone else in the group.

Before this year, all of my treks have been uninterrupted by inclement weather. Although this year I had some complaints, I'm considering our most recent journey a weather success, even though our Saturday night campfire was rained out. Thunderstorms had been predicted for three of the days that we were on the trail, so I am content that we were able to hike, set up camp, cook and wash up without rain. But my reputation with the group has suffered a bit from the rain; that is not nearly as big a loss as the missed opportunity for jokes, witty repartee and deep conversation around the fire under a Rocky Mountain sky.


Platinum Group
952.829.5700 • 9855 W 78th Street • Eden Prairie, MN 55344
www.ThePlatinumGrp.com

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