Professional Background

Otassca Investments C.A. is a privately operated turnaround and recovery company. It was founded in association with Deloitte and Touche of Venezuela for 7 years since 1990. Otassca Investsments C.A. track record includes hands-on direction in 16 corporate recoveries, involving analysis of client business and financial operations, development and implementation of business strategies, marketing, and sales strategies, location of alternate sources of funding, and reorganization of departments and companies. Successfully produced increases in revenue, sales, production, and shareholder returns. Clients have included real estate, pharmaceutical, advertising, manufacturing, steel, appliance, broadcasting, paints and paint supplies, and electronics.


Selected Project List

Commercial Building (1999 – Present)
As interim managers of this commercial and office real estate company, Otassca's team introduced the idea of marketing a large office building located in a previously undesirable location, but representing 1% of available office space in Caracas. Operating in a depressed economic climate, it formulated a plan to develop 180,000 square foot of commercial office building as a theme building or cluster, for rent only. An in-depth study was designed and carried out, demonstrating potential success of theme buildings, and an analysis of different industries to consolidate in the building was conducted. Arranged and led Managing Committee, consisting of company ownership and outside specialists. Analyzed office and commercial space trends in Latin America, themes already in place locally, and available commercial space in Caracas. Implemented final strategy focusing on an establishing telecommunications and dot com businesses. The real state paradigm was changed from "Location, Location" to "broadband, broadband". The team became a member of the World Teleport Association, and eventually was honored with their Annual Award of the Intelligent Building, in 2000, developing and marketing the company as Caracas’ Center of Technology. Incorporated internal convention center for tenant and outside use and for broadcasting U.S. events, resulting in an increase in productivity for Venezuelan industries. Invested money for remodeling came from operations, as all individual space requirements were carried out by tenants. Marketing of availability performed using presentations, and local media. Increased net cash flow and property value by $5.6 million in first year and an IRR of 15 % IRR. After the crash of telecom and e-commerce sectors the real state paradigm was changed again to "Services, Services and Services." The Services include the new innovative videoconferencing facilities, and a pool to buy access to the media at discount prices. Both services target at reducing costs and increasing market shares of building tenants.


Conglomerate (1996 – 1997)
Selected for position as Principal Member of the Board of Directors by its largest creditor (CAF, a multilateral investment company) of this 50-year-old, NYSE and Caracas Stock Exchange, paint manufacturing and diversified conglomerate during time of financial crisis. The company had acquired paint companies in Argentina, Panama, Mexico and California. Assigned to Financial Committee, where an in-depth investigation of business processes and financial management. Identified areas of loss due to poor communication and business management. Became instrumental during takeover or MBO of company and negotiated the recovery of the entire loan value despite company’s cash flow problems.

Refractory Glass (1995 – 1998)
Carried out three-year interim CEO managerial and financial project for the Refractory glass for Kitchenware production company set up to become world supplier of Oster glass jars. Company was not fulfilling obligations to CAF, the multilateral investment company, nor to Oster. Extensive manufacturing, sales and inventory problems were identified. This involved bringing in technical experts from the United States. Complete analysis of manufacturing processes, product molds, and technologies. Analysis indicated the purchase of new manufacturing equipment was necessary. Self-financed and with assistance from technical consultants, initial repairs were carried out to existing equipment, allowing plant to produce enough quality product to take over 16% of market share in Kitchenware products (from 0%) and first supplier to AVON in 1 year. Price advantages, new brochures, and hiring a very effective sales force on commissions through network were key to keep the company afloat, competing with multinational glass companies. Reduced operating expenses by more than $1 million between 1995 and 1996 and increased cash flow into positive region. The company finally closed operations because molds and furnaces collapsed and no investor was found.

Surge Protectors and Emergency Power Generation (1995 – 1996)
Brought in to the leading manufacturer of Surge protectors for computers and other appliances and emergency power generation by a McKinsey consultant to assist company in turning around extreme cash flow and management crises. Arranged business team and conducted analyses of business and production processes where more than 600 parts were involve in production as raw materials. Identified non-profitable products and terminated manufacture and sales of them. Introduced new inventory and production coordination plan. Improved flow and timeliness of production and distribution. Increased available funds through sales of land holdings to pay creditors. Reduced labor force by 10% with no loss of efficiency. Closed sales offices and allowed salespeople to operate from home. Arranged direct-from-plant distribution. Increased net cash flow from minus $1.5 million to positive $4.6 million. Reduced operating expenses by $1.6 million, accounts payable delays by 33%, and expenses by $2.1 million.

State-Owned Television Station (1994)
Contracted by the Venezuelan Minister of the Secretary (also the then Venezuelan President’s son) to assist in the restructuring of this state-owned television station. Key issues included low morale, deteriorated infrastructure, and poorly functioning equipment. Cash flow was minus $36.5 million, and it was estimated that repairs and upgrades of equipment would cost an additional $85 million. Accounts were in arrears due to poor collection techniques. Performed in-depth analyses of advertising requirements, and determined cost per minute for advertising, and minutes per hour required to produce profits. Coordinated basic repairs and improvements to equipment, in order to improve transmission quality and uptime. Prepared long-range financial and business operation plan for new management team.

Stainless Steel Houseware Products (1994)
Project involved investigation of production, accounting, and inventory processes for this rapidly growing but poorly managed steel product manufacturing company. Introduced raw material, finished product, and product-in-progress inventory programs. Reconstructed cash flow, calculated costs for each product, and reorganized accounting functions. Reorganized sales teams by geographic location, created product brochures, established sales quotas, and introduced new commission levels for salespeople. Reduced inventory levels of poorly-selling items through public discount sales. Improved quality control activities. Reduced operating expenses and accounts payable delays. Improved net cash flow from US$ -2.6 to +0.9 millions per year.

Home Appliances (1993 – 1994)
Contracted by investors to analyze production and plant operations for this manufacturer of home appliances and stainless steel products, and to develop a complete business plan and assist implementation. Designed and carried out complete reorganization involving introduction of new management team, classification of debts, and complete inventory sale to raise money to reduce loans and product profitability analysis. After four months plant was up and running again. Reduced delay in accounts payable by 66%, and improved net cash flow from minus $10.7 million to plus $1 million.

Tannery and Leather Products Companies (1993)
Brought in to improve product quality control and reduce expenses for one of Venezuela’s oldest tannery and leather products companies. Analyzed production and identified critical issues, such as damaged raw materials and poor quality control. Liquidated $3.3 million in non-productive assets. Reduced payroll by 37% and arranged debt settlement conditions. Carried out rescheduling of outstanding debt. Instituted improved quality control inspection and reporting process, and system of returns for damaged raw materials. Improved cash from revenues by $1.1 million, dramatically reduced delays in accounts payable, financial expenses, and inventory. Avoided injection of US$ 2 million that management requested to owners to keep company afloat.

Integrated Animal Feed Company (1991 – 1992, 1994)
Directed project involving complete business reorganization of animal feed company (third in the industry). Company owned by three groups of shareholders, each operating one aspect of business, therefore extreme organizational issues present. Organized priorities to manage cash flow. Introduced seriously enforced credit system, eliminating bounced checks from farm customers. Instituted intense collection activities, procuring $4 million in owed funds. Liquidated unnecessary assets to increase available funds. Increased sales almost 20% in one year, launching new products, and creating new packaging and size offerings for old products. Rented to Purina idle plant time. Introduced volume discounts for large buyers. Increased revenues by $2.4 million. Dramatically reduced expenses and total liabilities, while increasing equity. After project completed, a complete restructuring of each stockholder group’s individual businesses also carried out, with equal success.

Plastic Injection Company (1991)
Turnaround plastics injection company from position of negativez operating cash flow to positively profitable business. Main supplier of Shick shave products. Concentrated sales on profitable products only, and introduced successful new products. Performed price adjustments based on market analyses, and liquidated assets and unnecessary machinery. Increased productivity through computerization and more effective scheduling. Carried out major debt restructuring. Increased sales by $2 million, improved profits, and reduced liabilities.

Advertising Agency (1991)
Managed project involving improving sales, revenue, and marketing functions for Venezuela’s 10th largest advertising agency. Developed and instituted new strategy known as Total Presence Brand, involving providing increased services to existing clients in order to retain them. Services included special events, promotions, merchandising, direct marketing, and public affairs. Also introduced Integral Service Marketing concept, designed to allow small companies to combine and share advertising and marketing programs. Assisted company in analyzing clients and determining possible synergies. Redesigned Marketing Department into a profit center, by selling market research services to existing and new clients. Redesigned company’s brochures and advertising techniques.

Pharmaceutical and OTC Products Company (1990 – 1991)
Performed major business and marketing retooling for this 75-year-old pharmaceutical and OTC products company, with distribution and brand management ties to U.S. companies such as Procter and Gamble, Alka Selzer, Tampax, KIKKOMAN, and others. Analyzed positioning and competitors for each product. Formulated new marketing campaigns, new packaging, and new promotional strategies. Recruited new marketing and sales personnel. Launched seven new products, after performing in-depth cost/benefit analyses for each. Designed production schedules, and optimized scheduling and processes. Increased sales growth by 118%, increased sales 17.5 percent, and raised shareholder rate of return 42.9%.