Distribution company with approximately $120 million in revenues.
The company was a high volume, low margin distributor that was experiencing cash constraints.
Approach & Result
Upon analysis, I saw $1.2 million in Accounts Receivables, which were over one-year old. I picked up the trail on each account. As a result of my due diligence, I collected $200,000 in cash, which would have otherwise been written off as bad debt. Total cost to collect this amount was about approximately $24,000, resulting in an estimated return on investment over 8x the cost.