Case Studies
J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida
Read MoreA $70 million revenue Workgear (knee pads, tool belts, etc.) Manufacturer based in Texas.
The client required a review and assessment of operations, distribution, and product sourcing, including validation of its financial forecasts and cash flow projections. Given the prevailing economic climate, rising unemployment, and weakening sales, the Company’s senior lender was concerned about its liquidity. The Company’s “big box” retail customers were themselves feeling the loss of consumer revenue. That, coupled with the Company’s apparent excessive debt load, further contributed to the lender’s angst.
Our experts were engaged by the Company and rapidly identified concentration risk amongst the Company’s supply sources and retail customers. In addition, we identified significant excess inventory, which we recommended be liquidated rapidly to preserve the Company’s working capital liquidity. To assess concentration risks, we built breakeven and 13-week cash flow models of the Company’s financial projections and prepared a “what-if” analysis to illustrate our recommendation that the Company protect its financial performance by executing significant cost reductions. These cost reductions were documented, and a program of inventory reduction was developed to further ensure the Company’s profitability and to protect its working capital liquidity position.
The collaborative plan developed by the Company and our team provided the Company’s lender with comfort in the plan and the Company's overall prospects and continued to support the Company’s capital needs.
> 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.
> 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.
