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Interim Management & Turnaround of Cell Phone Service Provider

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Home·Interim Management & Turnaround of Cell Phone Service Provider

The Situation

Cell Phone Service Provider. $25 million in annual sales. $50 million in secured debt. $1 million annual EBITDA. Over 1.1 million service population. Family-owned business.

  • This highly leveraged business had poor financial reporting, weak management and business systems, and a strong-willed, entrepreneurial owner.
  • Its debt had reached $50 million, and several creditors were threatening to file for involuntary bankruptcy.
  • Operations, costs, and systems were poorly managed.

How We Advised

Our experts engaged as interim COO.

  • Cut costs, helped convert to new core-business systems, negotiated major creditor disputes, restructured agreements with several telecom vendors, and expanded roaming revenue sources by limiting revenue leakage while consolidating pricing and service offerings.
  • The company moved from $1 million annual EBITDA loss to a $1 million EBITDA profit.
  • The core business system upgrade/conversion reduced costs, increased revenue, accelerated invoicing, and significantly improved customer service and operational control.
  • Lender paid down $7.4 million on its debt.
  • Permanent COO was retained.

Key Contact

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

Related Practice Areas

> Chief Restructuring Officer (CRO) and Interim Management Services 
Our experienced C-suite interim executives advise and support companies in financial distress, experiencing hypergrowth, or that are challenged by critical vacancies among senior leadership. Whether the leadership void results from operating challenges, a recent officer resignation, the need for added support during busy periods, or during an extended job search for the right permanent hire, our experienced executives provide immediate relief and value. 

 

> 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. 

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