Case Study 1
Situation
The owner of a profitable company had a goal of cashing out a portion of the equity in the company and returning to his home in the UK. He did not know if he could maximize his equity by expanding quickly with available cash flows. The company’s tax advisors did not understand international tax implications for the company, nor did its owner.
Action
I analyzed cash flows and showed the owner that expansion could be done in a cash positive way. The owner and I interviewed and selected potential investment bankers and international tax advisors. I worked with the owner, investment bankers and tax advisors to leverage the company and cash out 25% of the equity to the owner.
Result
The owner had turned down an offer of $4 million for 100% of the company the day before I started. After 3.5 years, the owner left for the UK with tax free distribution of $20 million for 25% of his company. This was a 20x increase in value, and an even higher return after tax.
Benefit
Leading companies to grow shareholder value.
Case Study 2
Situation
At one company a recent acquisition had not processed any invoices, or paid any payables since the acquisition. The acquisitions sales were falling and the owner did not know how much the acquisition was costing him vs the cash generated from his existing business.
Action
I created a priority list for my work and discussed it with the owner. We agreed a cash flow projection was top of the list and agreed on tasks would have to wait.
I created the first ever cash flow forecasts for the existing company and the new entity. This projection showed that the current loss rates of the new entity would have put the whole company out of business if allowed to continued. Working with the President, it was agreed we did not have the resources to turn the acquisition around, and it was decided to shut down the new acquisition.
I worked with the President to sell the subscriber list, the acquisition’s most valuable asset.
Result
The company survived and several years later the company was sold for
$12 million after taxes.
Benefit
I am skilled at setting priorities, analyzing data, understanding cash flow and working with senior management to avoid crises.
Case Study 3
Situation
One company embarked on a rapid series of four acquisitions in ten
months as part of a plan to increase company value.
Action
I worked with the owner to evaluate acquisitions, perform due diligence
and communicate necessary information to bankers. We worked with 3 sets of
company lawyers, investment banker lawyers and bank lawyers to complete
transactions.
Result
Acquisitions added $11 million to revenue and $5 million to gross profit in
10 months.
Benefit
Leading companies to evaluate acquisitions, create and complete due
diligence, negotiate agreements and create shareholder value.
