Case Studies

Turnaround of Waste Management & Landfill Company

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

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Home·Turnaround of Waste Management & Landfill Company

The Situation

The third-largest privately held waste management and landfill company. $300 million in annual revenues. $100 million debt. 

  • Over-expansion (high capex) and poor management oversight caused EBITDA decline, negative cash flow, and covenant defaults.
  • The company was in default under its loan agreement.
  • Geographic expansion and focus on top-line revenue led to a decline in EBITDA.
  • Senior management is slow to react to deteriorating cash flows and profit margins.
  • Family governance issues compounded problems – two cousins as co-CEOs and 90 family members involved in the business.

How We Advised

Our experts engaged as the Financial Advisor and subsequently the interim COO.

  • Refocused the company on core operations and on EBITDA improvement.
  • Sold off non-core assets (low revenue geographies and landfills), which generated $40 million in net proceeds and had minimal impact on EBITDA.
  • Improved reporting, integrating 52 P&L centers into 8 market segments.
  • Enacted a significant long-term management succession plan for the family-owned enterprise.
  • Improved EBITDA by 25% and increased free cash flow by over $15 million.
  • Implemented a new management structure with a single CEO.
  • Debt refinanced on a 100% senior basis, eliminating $60 million sub-debt.
  • Reduced annual interest expense by $7 million.
  • Bank repaid 100% upon refinancing and participated in the new financing.

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. 

Key Contact

For additional information about the engagement or to learn more about our services, contact:

Our Experts