Case Studies

Financial Advisor for Real Estate

J.S. Held Acquires Clark Seif Clark, Strengthening West Coast Capabilities for Environmental Claims, Disputes, and Catastrophe Response

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The Situation

The company’s customer base experienced severe stagnation, and management did not pivot quickly enough to overcome the effects of declining revenues.

When the company defaulted on its line of credit and failed to provide a recovery plan, the bank engaged our experts for help.

How We Advised

Our experts determined the viability of a 75-year-old family-owned business for its lender after the company’s clients suffered a swift decline.  We determined the company could not survive until its clients recovered, but would have value to a strategic buyer.  The company’s owners agreed with our conclusion, and the business was sold, generating sufficient proceeds to pay the bank in full as well as provide an equity return to the owners.

Obstacles & Our Solutions

  • The company defaulted on its line of credit, and its lender needed information to determine an action plan.
    • We identified the key internal and external business drivers.
    • Our team developed a comprehensive financial model that demonstrated the company could not survive without its clients recovering but would have value to a strategic buyer.
  • The company’s owners and CFO were inexperienced in operating a business with declining revenues and were reluctant to let go of long-tenured employees.
    • Our experts earned the owners’ trust during the due diligence process.
    • We evaluated long-term strategies for the company.
  • The bank wanted its capital returned.
    • The business owners agreed to a sale and retained an investment bank on our recommendation.
    • The bank was repaid in full, and the owners received an equity return.

Key Contact

David Stapleton, CPA, CLPF 
Senior Managing Director 
Strategic Advisory Practice 
+1 213 235 0601 
[email protected] 

Related Practice Areas

> 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. 

 

> 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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