Case Study: Jim Wirtz's Woodworks
Profile
Before being acquired by a large competitor, Jim Wirtz’s Woodworks was the premier provider of custom cabinetry to residential and boutique commercial clients in the Milwaukee area. Wirtz is perhaps best known for their work on the complete renovation and transformation of Johnny Manhattan’s, from a hole-in-the-wall pizza joint to an upscale supper club that continues to wow its patrons with its gorgeous design and craftsmanship.
Problem
During the recession, most contractors and subcontractors in the building and remodeling industry suffered cash flow issues, and Wirtz was no exception. Although they were able to climb out of the recession, a long list of vendor bills threatened the business’s viability.
Solution
The Giersch Group began by addressing the accounts payable problem with their cash flow management process. Meeting every Monday they reviewed the cash flow for the previous week and the cash needs of the coming week. With careful tracking of a detailed cash flow spreadsheet, the team developed an orderly plan to pay down creditors.
Result
Within just about a year, Wirtz was able to reduce a six-figure debt load to 30 days of accounts payable. Also, in the middle of this year, his long-time bookkeeper suddenly resigned; the Giersch Group was able to place one of their client controllers in that role to keep the process moving smoothly. Shortly thereafter, Wirtz was approached by a competitor who wanted to purchase the business and Giersch Group’s M&A practice helped to structure and close the deal.
“The Giersch Group helped me turn my business around at a crucial time and even stepped in to do our accounting when my bookkeeper resigned suddenly. Ultimately, Peter helped me sell the business. He was very helpful.”
Jim Wirtz
Jim Wirtz's Woodworks
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