Engagements
ABTV has deep experience in a range of industries and across a variety of service areas. Below are summaries and a sampling of some of our engagements that demonstrate how we apply creative, practical solutions to critical challenges to ensure the best possible outcomes for our clients.
Food Production & Packaging Company
An out-of-state, court-appointed Receiver engaged ABTV to assess the company’s process capability, adherence to regulatory standards, development of cost and performance standards, and inventory controls. We were engaged to act in an advisory capacity to the Receiver. In addition, ABTV performed SKU cost and production analysis by brand and made recommendations on production and inventory targets. As a result, the company received the TMA Small Business Turnaround of the Year Award in 2015.
Multi-Hotel Financial Assessment
ABTV was retained by the lender to analyze company financials for a multi-property hotel group in order to determine viability, cash usage, accuracy and applicability of financial statements. We also assessed the ability of the properties to service debt and reach positive results in a reasonable period of time. We performed as complete an analysis as possible—given very limited accurate information sources—on property operations, financial statements, benchmark data, bank records, and tax returns.
Large Multi-Specialty Healthcare Provider/Physicians Practice
A large multi-specialty healthcare company faced challenges when its primary lender expressed concerns about its viability, collateral reporting, cash forecasting and utilization capabilities, and payables management. ABTV was engaged to act in an advisory capacity, focusing on the identified issues. ABTV’s involvement was later expanded by management to assist in managing the incumbent lender relationship and successfully locating and obtaining replacement financing. ABTV implemented a number of operational improvements of a multi-phase financial restructuring plan that incorporated a broad-based expense reduction plan, allowing for the use of additional collateral, which resulted in significant improvement of overall liquidity.
Direct Sales Women's Apparel Company
ABTV was engaged as interim Chief Restructuring Officer and business advisor for a direct sales women’s apparel company, which maintains a national sales presence with manufacturing operations in China and Hong Kong. The company was in violation of loan covenants and was in a liquidity crisis and had lost creditability with its largest lender. ABTV has worked and is working with the company management to develop a reliable weekly cash flow model, strategic and detailed operational plans along and helping improve the company’s relationship with its lenders.
Large, Diversified Agri-Business Company
A privately held agri-business company experienced rapid growth for several years, which had progressively strained its organizational, operational and financial structures. ABTV was retained to provide interim management services to guide the company through the process of a corporate restructuring, successful refinancing of its bank indebtedness, and a total overhaul of its operational and management processes, and business systems. ABTV also developed and implemented an integrated business enterprise software system. ABTV remains engaged and is actively working with family ownership on estate and business management transition planning.
Private Equity Firm’s Portfolio Company
Engaged by two private equity firms to develop a restructuring strategic plan for the consolidated and multi-divisional operations of a severely underperforming portfolio manufacturing company with locations in Atlanta, Georgia and Memphis, Tennessee. The plan encompassed execution plan strategies and implementation steps and timetables for all marketing (branding, market positioning and target marketing programs), sales (organization, customer/sales network and pricing methods), operations (lean manufacturing, quality control programs, development of materials management and production capacity planning systems), and setting up financial performance metrics and benchmarking, cash flow forecasting and liquidity management models and methods.
Water Bottling & Distribution Company
Selected to execute a feasibility and situational analysis of multi-location companies in Jackson, Mississippi involving a complete business analysis and evaluation of its organizational, marketing, sales, operational and financial segments. This work included developing go-forward strategies for a “what if” scenario of the newly restructured business and/or executing a “sale strategy” to targeted strategic buyers.
Middle Market Apparel Manufacturer
An apparel manufacturer that had suffered a failed acquisition and deep losses over the prior three years had been placed in special assets by its lender; there was significant obsolete inventory; and, the organization had become dysfunctional over its 50-year history. ABTV, retained as long-term financial advisor, recommended an aggressive asset management program to reduce inventory in order to improve the bankability of the company. ABTV prepared a strategic plan that required divesting the failed business segment, removing a problem officer/shareholder, aggressively reducing inventory to improve bankability, and pruning customers and products to improve margins. After taking these actions and liquidating the inventory from the failed acquisition, ABTV successfully arranged refinancing. These actions solved the major functional issues, eliminated the losses and provided the liquidity needed to continue operations. ABTV continues today as a member of the board of directors.
Long-Time, Large Textile Manufacturer
A bank had hired another turnaround company to evaluate this 100-year-old family-owned textile manufacturer due to sudden large losses, which were not totally understood by the company. The bank and the company were dissatisfied with the report and proposed actions, and ABTV was engaged to replace them. The client company was pleased with ABTV’s analysis and proposed solutions and hired ABTV to implement the plan as the first CEO outside the family. ABTV served as interim CEO, brought in a replacement lender, significantly strengthened the company’s balance sheet and cash position, successfully refinanced its debt structure and hired and trained the replacement CEO.
Large Regional Home Builder
ABTV was engaged to work and guide the privately held company’s next- generation CEO through the development of a strategic plan encompassing all of its marketing, sales, operational and financial segments. ABTV participated in and coordinated an assessment and evaluation of the company’s existing financing and debt structures in order to arrive at optimal financing and debt arrangements that best fit the company. This also included ABTV’s participation in monthly operational and financial management meetings with the company’s management team, along with training and mentoring the company’s new CFO and providing an overview of financial operations, systems and reporting.
Home Furnishings Manufacturer, Importer, Wholesaler and Retailer
This multi-divisional long-time family-owned business was looking for alternatives to liquidation and hired ABTV to identify and evaluate options. ABTV developed short-term and mid-term liquidity models and detailed operating budget, determined that the business is viable, successfully refinanced the existing debt, and cut 75% of the debt by selling surplus assets and implementing management and operational changes. ABTV served as the President and CEO of the client for some time after to help the family.
Fortune 50 Company
A leading Fortune 50 company engaged ABTV to act as senior financial liaison for one of its large medical technology divisions that they were in the process of deciding whether to sell or develop and implement a turnaround program over a multi-phase engagement. ABTV provided financial due diligence responses to bidders, prepared financials and supporting documentation, put together schedules and analysis for financial statement representations in the purchase agreement, prepared various supporting schedules upon requests of bidders, and developed a fully loaded, standalone financial statement for the division along with supporting documentation and analysis. ABTV assisted corporate management in evaluating bids, including identifying and quantifying the operational and financial synergies of bidders. ABTV prepared the financial, operational and overall business information schedules and analysis that was uploaded to the proposed deal data site. ABTV worked with corporate and division leaders throughout the due diligence process with the selected bidder/ultimate buyer along with preparation for the pro forma financial projections, deal and pricing negotiations, conferences and meetings leading up to the successful sale of the division.
Recycling Company, Market Downturn
Facing a severe market downturn in scrap metal prices and seven consecutive months of significant cash losses, a 100-year-old, fourth generation-owned scrap metal recycling company engaged ABTV under a bank forbearance agreement. ABTV conducted a comprehensive assessment and concluded the company could not survive without the resources of a much larger parent company. ABTV spearheaded the search for a suitable buyer along with implementing a margin management program, recommending a sizable reduction in the workforce and making changes in the management team. The stabilization of operating losses happened almost immediately. The company avoided liquidation by managing margins and expenses and successfully negotiated a chain of forbearance renewals with the bank. Within a year, the company was sold to a much larger, multi-national steel company. The sale resulted in a premium price that was paid to shareholders and the retention of most of the remaining jobs. In addition, all secured and unsecured debts were either paid at the sale closing or assumed by new owner.
Headwinds for an Ethanol Manufacturer
After an investment of $120 million, persistent start-up troubles and low market prices combined to doom a new ethanol manufacturing company within a year of its launch. ABTV was hired as the financial advisor to usher the company through a difficult Chapter 11 reorganization effort and contentious negotiations with its syndicated lending group. Economic conditions made the reorganization untenable, and the company was ultimately sold through a 363 sale.
Undercapitalized Precast Concrete Contractor
A highly competitive market proved too much for an undercapitalized precast concrete contractor to remain competitive when a number of projects encountered problems. ABTV was appointed by the court as a Receiver for the $10 million firm and successfully guided it through an orderly wind-down and asset sale.
Family-Owned Food Company
A successful $100 million family-owned nut and fruit company encountered a rough patch when its inventory grew unexpectedly, worrying its lender and threatening its funding. ABTV was hired as a financial advisor to assess the situation, help the company establish controls and reporting mechanisms for managing its operation, ultimately leading to more stable cash flows and profitability. This allowed ABTV to secure several proposals for new financing that improved liquidity and lowered financing costs.
Specialty Yarn Manufacturer
A 116-year-old yarn manufacturer encountered significant cash challenges from several years of losses and the effects of rapid expansion. Relations with the company’s senior creditor were strained. The $60 million company hired ABTV as a financial advisor to conduct a comprehensive assessment of its finances and operations, and worked with management to implement initiatives to stabilize the company, improve cash flow and return it to profitability. ABTV was able work with the senior lender and successfully completed a difficult refinancing process that provided more flexibility at a lower cost.
186-Year-Old Private College
A series of leadership missteps and increasing competition created an unexpected drop in enrollment for this historically successful institution, leading to significant losses and a cash crisis. ABTV was hired to perform a comprehensive assessment of the college’s finances and existing initiatives to determine the likelihood of success, and to identify additional opportunities for improvement. ABTV successfully facilitated communications with the college’s secured lender and continues as a resource for the institution as it improves enrollment and works to restore its financial footing.
108-Year-Old Textile Manufacturer
After 108 years, this multi-location yarn manufacturer yielded to relentless foreign competition and a lack of capital. An ABTV advisor was hired to work with its creditors and successfully led a creative wind-down and out-of-court liquidation process that resulted in full recovery for the secured lender and significant recovery for its 300 unsecured creditors.
175-Year-Old Private College
The great recession left this institution reeling with lower enrollment, falling donations and an endowment worth half of its pre-recession value. This “perfect storm” resulted in a severe cash and leadership crisis. A senior ABTV advisor was engaged as the Chief Restructuring Officer to work with its board of trustees and senior management team. With the support of the college’s lender, ABTV led a highly successful turnaround that put the college on sounder footing and today it continues to grow and looks forward to its 200-year milestone.