Case Studies

Financial Assessment for Ready-Mix Company

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

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Home·Financial Assessment for Ready-Mix Company

The Situation

Ready-mix company with plants in Ohio and Florida. $200 million in annual revenues. $60 million debt. 

  • The senior secured lender group faced the prospect of priming DIP financing and a “surprise” Chapter 11 filing.
  • The client was in a severe liquidity crisis, but the Real property and going concern valuations provided by the debtor showed the lenders to be oversecured.
  • Senior lenders were shocked by the filing and priming of the DIP plan.

How We Advised

Our experts were hired by the senior lender group to evaluate the DIP filings and prepare a counterproposal.

  • Performed a comprehensive financial and business assessment to determine exit strategies and stakeholder returns.
  • Assessed business plans, financial projections, and operational strategies.
  • Business plan found to be inaccurate.
  • Going concern and liquidation valuations were found to be overstated.
  • Lenders were shown to be seriously undercollateralized.
  • The proposed plan of reorganization was unfeasible.
  • Provided expert testimony, which won a reversal of the Court’s prior ruling to approve the priming DIP facility.
  • 363 sale process and coordination with the Unsecured Creditors’ Committee resulted in a 50% improvement in estate value.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

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> Business Plan Validation 
We deliver integrated solutions for distressed and insolvent businesses that maximize recovery, mitigate risk, and restore enterprise value. Our experts are retained to help distressed organizations stabilize operations, protect stakeholder interests, and execute turnaround strategies. We take an operationally-focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Our team delivers hands-on guidance and independent analysis to lenders, creditors, legal counsel, executive teams, boards of directors, and investors. 

 

> Business / Operational Assessment 
Most consulting firms approach a business assessment from a purely financial perspective — our assessments provide a 360° view of a business, addressing growth drivers, profitability, and uses of capital. Along with detailed financial performance reviews and cash flow forecasting, our comprehensive Business / Operational Assessment identifies the various challenges clients encounter throughout their operations. 

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