Case Studies

Turnaround of Trucking Company

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

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Home·Turnaround of Trucking Company

The Situation

Trucking, Moving, and Storage. $25 million annual revenue. $12 million in debt ($8 million in RE and $4 million in Line of Credit). Shareholders owed an additional $9 million on land purchased for development.

  • The company had experienced a 20% decline in Revenue, but business was rebounding 2 years later, causing a working capital squeeze.
  • Owners were paying the Real Estate company's debt directly from the Moving & Storage company.
  • Secured lender concerned with decreasing availability and high debt secured by Real Estate.
  • The loan was moved to the work-out group that did not have a history with the company.

How We Advised

Our experts prepared an assessment of the company, identifying payments made to RE Company, but indicating that cash flow was adequate to cover debt service

  • We worked with the company to identify $2 million of EBITDA improvements.
  • We negotiated with the lender to provide adequate time to refinance.
  • Our team reached out to over 50 lenders to refinance loans.
  • The company refinanced its debt with a new lender.
  • Amortization of debt is extended to 20 years from 8 years.
  • The company improved its cash flow by $150K per month.
  • The bank repaid 100% of the loan.

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. 

 

> 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. 

Key Contact

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