Case Studies

Creating Cash Out of Excess Working Capital

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

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The Situation

Manufacturer of material handling equipment for commercial bakeries. $20 million in annual sale. $3 million bank debt.

  • Second generation Family Business with weak Financial and manufacturing management.
  • Multi-year sales growth with addition of international customer, but international sales volume faded and associated SG&A costs did not.
  • Several larger jobs had lost money.
  • Customer collection practices poor.
  • Bank lender 30% over-advanced on collateral value.
  • Business not saleable in its weak condition.
  • Owner had personal guarantee and liquidation represented a sure loss for the lender.

How We Advised

  • J.S. Held engaged as CRO to provide Assessment and create Turnaround Plan.
  • Company downsized, inserted new controls on bidding and job management, collected AR hard, reduced plant WIP inventory to generate cash.
  • Discovered manufacturing management involved in theft and fired top 3 managers and re-staffed management.
  • Negotiated with major suppliers to keep raw materials flowing.
  • Company EBITDA improved from $1 million to $1.5 million annually.
  • Refinanced company to a new lender.

Key Contact

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

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