Case Studies

Collections Company Recapitalized Successfully

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

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Home·Collections Company Recapitalized Successfully

The Situation

A Collection Agent that provides skip trace, charge-off services, and mortgage collections. $90 million in Revenue. $50 million in Debt.

  • The Company had weak financial presentation and controls.
  • Trust accounts were not swept, and excess balances were maintained.
  • Customer concentration concerns and business development risk.
  • The Company made large acquisitions, which taxed their credit availability. Large balloon and debt service payments are due.
  • The PE firm was not willing to commit funds, and recapitalizing with new debt was unlikely.
  • The Company needed additional working capital to replace lost customers with new customers.
  • The primary lender lost faith in the restructuring plan and the company.

How We Advised

Our experts prepared a feasibility analysis and business assessment that included detailed reconciliations of trust accounts and accounting concerns of the lender. J.S. Held recommended solutions and corrective actions put in place by the Company that freed up additional working capital to bridge the shortfall.

  • We worked with management to present cash flows, projections, and other reporting used to give lenders and the PE firm better visibility and understanding of operations. Including cost-cutting, liquidation analysis, and risk analysis.
  • Our team used their favorable relationship with lenders and the PE firm to facilitate negotiations and give independent, reliable recommendations.
  • We were able to resolve critical trust account issues and accounting concerns for lenders and owners.
  • Our team served as the primary negotiator with the PE firm and lenders to complete the recapitalization.
  • We presented reliable projections and analysis that were used to support transactions, negotiate valuations, and clarify accounting concerns that led to closing the recapitalization.
  • We reconciled and resolved trust accounts, which facilitate the lender's transfer of cash management.

Key Contact

Mark J. Welch, CPA, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 412 498 8258 
[email protected] 

Related Practice Areas

> Debt Restructuring Services 
When a company is in financial distress, our Strategic Advisory experts design and implement debt restructuring and refinancing strategies tailored to the company’s unique circumstances. We help middle-market businesses stabilize operations, improve liquidity, and optimize their capital structures. 

 

> Turnaround and Restructuring Services 
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation. 

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