Representative Non-Judicial Engagements

Company: Manufacturer of Wheels for Off-Road Vehicles and Machinery

Status at Outset:  Technically insolvent and in workout with a regional bank

Engagement:  Developed weekly cash flow forecasting model; negotiated with trade creditors and lenders; rationalized production volumes and size of workforce to match sales level

Outcome:  Eventual sale to larger competitor, thus avoiding bankruptcy

Company: Regional Construction Company Serving the Chemical, Oil and Utility Industries

Status at Outset:  Technically insolvent and in workout with a regional bank

Engagement:  Developed weekly cash flow forecasting model; restructured organization, relieving it of underperforming managers; implemented operating and financial controls, including project management controls and tools (the company frequently underbid fixed-price contracts); implemented periodic project review sessions (the company often had no idea of whether a particular project was on budget while in progress, waiting until it was completed to tally the loss); negotiated with lenders and bonding companies

Outcome:  Eventual sale to larger competitor, thus avoiding bankruptcy

Company: Manufacturer of Accessory Equipment for Large-Scale Heavy Earth Moving Equipment

Status at Outset:  Technically insolvent and in workout with a regional bank

Engagement:  Developed weekly cash flow forecasting model; restructured trade debt to prevent cessation of raw material shipments and consequential shutdown of production; reduced overhead; installed operating and financial controls; negotiated with lender to avoid foreclosure of assets; this case is entitled “Crane Manufacturing Company” in A Casebook on Corporate Renewal, a text-book of turnaround cases compiled by two Northeastern University professors.

Outcome:  Company could not continue as a going concern; product licensing rights sold to major manufacturer of earth moving equipment

Company: Manufacturer of Custom Conveyor Systems for Box Manufacturing Plants

Status at Outset:  Contacted by regional bank on a Friday afternoon after owner “through keys on the table”, engaged by bank over the phone to be on site Monday morning

Engagement:  Sell assets within seven days to prominent businessman who owned several manufacturing facilities producing similar products, and if deal satisfactory to bank could not be reached then manage company and sell as going concern

Outcome:  Valued all assets, particularly inventory which had not been valued in over a year; determined remaining labor and material cash expenditures to complete each job in progress; oversaw production to ensure certain jobs were continued; negotiated with prospective buyer and his consultants; sold assets within seven days for an amount recovering bank’s entire exposure, including consulting fees

Company: National Software Consulting Company Owned by Two Private Equity Funds

Status at Outset:  Burning cash at the rate of $100,000 per month; private equity funds had “walked away”, planned IPO for summer of 2000 canceled because of the overall tech crash; management paralyzed

Engagement:  Immediately right-sized employee base to current revenue stream; developed weekly cash flow forecasting model; revised engineering compensation program to reflect current revenue stream; revised organizational structure accordingly; closed three regional offices; negotiated with trade creditors, four-bank lending group and holders of other obligations; commenced long-term planning process, bringing all functional areas together in the process; brought in bankruptcy attorney to assist in creditor negotiations

Outcome:  Company did not file bankruptcy and was purchased by two of its executives

Company: Manufacturer of Commercial Lawn Mowers and Accessories

Status at Outset:  In workout at a regional bank

Engagement:  Immediately developed weekly cash flow forecasting model; negotiated with trade creditors to restructure trade debt and to insure continued shipments of raw material; worked with management to instill sound financial forecasting, particularly cash; assisted management in determining space needs (company had successfully installed lean manufacturing processes requiring much less space than required for mass production); negotiated with senior lender to continue forbearance period; addressed shareholders to raise additional equity funds;

Outcome:  Company continues today under same management and ownership

Company: Manufacturer of Buildings Used in Cellular Telephone Infrastructure

Status at Outset:  In workout at a regional bank

Engagement:  Developed weekly cash flow forecasting model; implemented wage and staffing changes to reflect current business activity and to stop cash hemorrhaging; negotiated with trade creditors to continue shipping raw materials, thus avoiding plant shutdown; restructured trade credit over five year period; closed one plant due to lack of demand; negotiated with senior lender to continue financing the company

Outcome:  Company continued operating

Company: Precision Metal Fabricator and Assembler Serving Technology Industry

Status at Outset:  Technically insolvent and in workout at a regional bank who wanted the company shutdown immediately due to significant cash hemorrhaging

Engagement:  Immediately developed weekly cash flow forecasting model; worked with owner group to assess whether company could continue as going concern given current level of activity, required capital expenditures and projected sales for its customer base and industry; determined with owner group that company should be liquidated to eliminate their exposure to personal guarantees; resisted bank’s desire to immediately close company, and instead implemented orderly shut down of business over two month period in order to maximize liquidation proceeds; brought in bankruptcy attorney to assist in wind down and to avoid an actual bankruptcy filing; negotiated revised forbearance agreement with reduced personal guarantees from owner group; monitored wind down process for owner group

Outcome:  A very successful liquidation, with full repayment to bank and substantial dividend to unsecured trade creditors; owner group guarantees never called

Status at Outset:  In default of credit facility with regional bank who had petitioned court for appointment of a receiver