Case Studies

Operational Advisory Leads to Going-Concern Sale of Alarm Company

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

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Home·Operational Advisory Leads to Going-Concern Sale of Alarm Company

The Situation

National residential alarm monitoring and servicing company with $2 million of recurring monthly revenue from 50,000 customers ($25 million annually). $39 million debt.

  • Technological obsolescence exposed the company to a tremendous risk of life/security liability.
  • The account base is suffering tremendous attrition due to customer dissatisfaction arising from onerous contracts, poor customer and field service, and general economic conditions, leading to increasing diseconomies of scale.
  • A highly regulated/licensed industry that requires 24/7/365 operations.
  • Enterprise value is entirely dependent on maintaining and servicing the existing contract portfolio.
  • Shutting operations would result in total loss of enterprise and account value.

How We Advised

Our experts were hired as interim management and assumed day-to-day control of operations to ensure uninterrupted account servicing and to develop a comprehensive analysis and remediation plan to address portfolio problems

  • Operated the company to prevent collapse and provide time for the transition of the account portfolio to a stable platform.
  • Stabilized operations and provided complete and accurate situation analysis to lenders and other stakeholders.
  • Identified barriers to sale or transition of accounts and remedied fixable problems.
  • Reduced operating costs to minimize cash burn; assumed full control over all treasury operations.
  • Guided the company through a controlled transfer of operations with no significant interruption to account servicing.
  • Reduced risk profile by transferring non-core account servicing to other parties and selectively upgrading critical infrastructure components.
  • Ran a comprehensive sale and outsourcing process to identify the best alternative for maximizing contract value.
  • Successful transfer of operations to a third-party servicing partner offering stable technology and fixed servicing costs.
  • Increased portfolio value by $2+ million by proactively addressing non-communicating panels and other account issues.
  • Eliminated high-risk failure points that threatened to put the company out of business at any single moment.
  • Sold business and assisted in the transition of accounts to the new monitoring provider.

Key Contact

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

Related Practice Areas

> Chief Restructuring Officer (CRO) and Interim Management Services 
Our experienced C-suite interim executives advise and support companies in financial distress, experiencing hypergrowth, or that are challenged by critical vacancies among senior leadership. Whether the leadership void results from operating challenges, a recent officer resignation, the need for added support during busy periods, or during an extended job search for the right permanent hire, our experienced executives provide immediate relief and value. 

 

> 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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