Case Studies

ABC of Landscaping Distributor

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

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The Situation

Distributor of landscaping and irrigation products. Revenues of $20 million are down 67% from 2 years ago. $6 million in debt. The family had guaranteed loans.

  • Sales revenue had declined to $20 million as the economy ceased.
  • Operating Losses in excess of ($150K) per month.
  • The Bank deemed $3.4 million of inventory ineligible, reducing the Borrowing Base Availability to under $250K.
  • Vendors are stretched with $2.3 million of the $3.5 million in A/P not current.
  • Inventory is being depleted to pay for cash burn.
  • No unencumbered assets remaining.
  • The bank demanded repayment within three months.

How We Advised

Our experts worked with management to cut costs and reduce EBITDA losses by $1.8 million annually.

  • Reduced ineligible inventory by $1.5 million in 4 months, allowing the company to purchase the current product.
  • Negotiated with the bank to extend the refinancing period to 6 months.
  • Reached out to over 50 banks to refinance loans and 10 investors to purchase the company.
  • The Company was sold to a strategic competitor, providing jobs for employees and the owner.
  • Sold the company through an Assignment for the Benefit of Creditors to provide comfort to the buyer that old liabilities would not be its problem.
  • Negotiated a discount from the bank to satisfy loans and release the guarantees.

Key Contact

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

Related Practice Areas

> Assignment for the Benefit of Creditors (ABC)
As Assignees, our financial and operational experts leverage extensive restructuring experience to liquidate assets and quickly maximize proceeds for creditors while mitigating liability and preserving jobs. Our team serves as the distressed business’s de facto CEO and CFO, taking control of operations; managing creditors, employees, and litigation; preparing for and executing the sale of business assets; and distributing proceeds to creditors pursuant to priority.

 

> Solutions for Distressed Situations
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 Experts