Typical Engagements
$85 Million West Coast Transportation Carrier
Engagement: Advise on profitability or exit strategy, a sale of the business and possible repayment of creditors. Planning a Warn Act release.
Status: Shareholders were contemplating liquidation on non-performing trucking entity. Convinced owners that operations could become cash positive, finalized restructure and assisted management in achieving profitability in both divisions, resulting in two successful operations.
$120 Million Regional Furniture Manufacturer
Engagement: Assist in cash management and CFO Role for seven division manufacturer experiencing substantial losses. Create strategic marketing plan to maintain national presence and profitability.
Status: Implemented divisional "P & L" reporting and gross margin by SKU which showed negative margin in major lines. Retrenched with shutdowns, filed Chapter 11 $12.5 Million DIP financing provided and Plan of Reorganization approved.
$22 Million Millwork Facility
Engagement: Advise on strategy to liquidate the business in orderly fashion after experiencing $7 Million losses in two government remodeling contracts.
Status: Core business of sub-contract work for the gaming industry was basically still active with good margins. Closed underutilized plants, sold assets not vital to the surviving enterprise and raised $1.5 Million in creative financing to support operations and completed composition of $1 Million in unsecured debt as part of recapitalization. The company is healthy and making profits.
$18 Million Binder Manufacturer
Engagement: Key management team dysfunctional with $500,000 quarterly losses, requested CEO services for corporate restructure and recovery.
Status: Rebuilt management team, brought new manufacturing efficiencies improving throughout by 225%, implemented incentives for production targets and created long-term strategic plan. Company is growing and generating profits ahead of plan.
Indicative Transaction Summary:
$40 Million Forest Products Manufacturer
Engagement: Turnaround three divisions experiencing unprofitability, divest assets and take advantage of financial discount on senior debt.
Status: Successfully refinanced $8 Million debt with asset-based lender sold two divisions and brought remaining operations to profitability. Took advantage of debt discount, improved balance sheet $2,700,000.
$32 Million Wood Products Spinoff to Management
Engagement: Maximized values derived from divestiture of undercapitalized division. Demonstrate with adequate capital the potential and investment based on a properly capitalized entity.
Status: Closed sale within desired time frame, exceeded expectations of the Board of Directors as to proceeds. Acted as intermediary in raising senior debt and subordinated debt totaling $4.2 Million.
$22 Million Engine Assembler
Engagement: Stabilize operations, intervene with vendors and bring new financing to assist in recovery. Owner was "hitting the wall".
Status: Two financings, senior and subordinated totaling $3.25 Million, provided adequate working capital. Re-established relations with vendors and company is setting sales and profitability records.
$12 Million Optical Retailer
Engagement: Prepare for a filing to reorganize and pay creditors to absolve personal liability of owners and management. Operations were running serious losses.
Status: Stopped the run rate of losses, planned cash to avoid need for DIP financing and entered Chapter 11 with the ability to control own destiny.