An aerospace and defense contractor that machines and forms high-precision parts for commercial and military aircraft OEMs had struggled since 2017 with senior management turnover, CapEx spend and increases in specialty metals prices and skilled labor costs. The company operated at a $7 million loss in EBITDA in 2022 and was only able to survive 2022 due to $4 million in PPP funding in 2021, and by increasing its trade payables by a factor of two.
Additionally, prior to engaging with Novo, the company attempted some price improvements with customers but were unsuccessful. Despite its poor financial performance, the company produced excellent products that were critical to some of the biggest aircraft programs in the world.
Novo was engaged and appointed CRO in 2022 and immediately put profit improvement and spending discipline at the forefront of the turnaround plan.
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