Case Studies

Chapter 11 Used to Downsize Company

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

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Home·Chapter 11 Used to Downsize Company

The Situation

Dry van and refrigerated truck load carrier. $300 million in sales. $150 million in bank debt.

  • High cost of acquiring 13 companies caused a drain on liquidity.
  • Projected cost savings did not materialize as recession caused drop in revenue and profitability.
  • Senior management was not analyzing operations or reacting to the market during roll-up of purchased companies.
  • Company undercapitalized and losing money on a daily basis.
  • Poor economy, poor integration of acquired companies and increased insurance premiums due to poor safety record forced company into bankruptcy.
  • High dead head percent and underutilization of equipment was causing a drain.

How We Advised

  • Our experts engaged as Financial and Reorganization Advisor in a Chapter 11 proceeding.
  • 13 roll-up companies were still operating independently with no consistency or oversight.
  • Equipment was not being maintained and not being replaced.
  • Sales and marketing were operating independently of operating strategy.
  • No safety strategy.
  • Replaced senior management with operations focused management team.
  • Instituted new sales initiatives to align with company goals.
  • Divested two rolled up companies which were not strategic fits.
  • Instituted company-wide safety program that decreased losses by 30%.
  • Required quarterly on-site preventative maintenance for all equipment.
  • Began equipment replacement program to decrease average age of tractors from 3.5 years to 2 years.
  • Returned 25% of all equipment to leasing company.
  • Facilitated successful Plan of Reorganization from a Chapter 11.

Key Contact

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

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