A flagship restaurant for a national brand located in a popular tourist destination was producing only enough free cash flow to cover the investors’ annual tax liabilities. Top line sales were declining over a period of years, threatening long-term viability. ChurchillTerry developed a ground-up executive incentive and compensation plan that aligned managers’ interests with the investors’ interests, resulting in strong top-line growth each year for the following 4 years with a rapid rebound in profitability that allowed cash distributions to investors’ in excess of a 10 percent annual return on their investment.
Investors in a collection of related businesses sought to restructure and reorganize the businesses to better leverage their collective core competencies and accelerate growth. Working with the investors and executives, the businesses were reorgani...Previous Article