Case Studies
J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida
Read MoreThe company, a specialty subcontractor on large marine restoration projects, had been sand-blasting, cleaning, preserving and applying protective coatings to the exterior body, equipment, super-structure and interior spaces of naval warships since 1969. It provided similar services on the exteriors of real property for industrial and commercial customers. Its strong reputation for quality and dependability created substantial demand via increasingly large contracts. Lacking sufficient infrastructure and protocols to manage the company’s rapid growth and saddled with a $5 million loan to support operations, the company became insolvent, couldn’t make payroll and got thrown off of jobs.
We were retained by the company when it was down to $100,000 in cash and about to miss payroll. The company’s books and records were in extremely poor condition and management had failed to provide accurate and timely financial statements to its secured lender, which was at risk of losing its $5 million loan.
The company and its lender were negotiating a stipulated receivership. A buyer had been identified, however, it was unwilling to wait through the stipulated receivership process. We recommended an Article 9 sale for its expediency, cost and resulting clean title for the buyer.
A secured lender at risk of losing most of its $5 million loan to a 50-year old naval ship restoration company referred our experts to serve as CRO of the insolvent company, assess operations, and design and implement a recovery plan. We quickly identified new sources of cash flow and operated the company through its successful Article 9 sale for $2 million, 2x the initial offer received and 4x the projected forced liquidation value of the company’s assets. The successful recovery preserved jobs for certain employees and was achieved in 4 months by:
Obstacles & Our Solutions:
David Stapleton, CPA, CLPF
Senior Managing Director
Strategic Advisory Practice
+1 213 235 0601
[email protected]
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