EMAGroup/Enterprise Management Advisors, LLC | Assisting Companies in Transition
EMAGroup advises companies in transition, focusing on Special Situations, Capital Solutions, Enterprise Performance and Insolvency options to create value-driven solutions.
Turnaround & Business Restructuring, Enterprise Performance Improvement, Capital Solutions
Situation
Deep covenant default resulting from substantial operating loss, excessive leverage, and non-compliance of loan and financial reporting requirements. Management had prepared a plan to remediate the business operations but was unable to reconcile planned improvements to obtain profitability. Company asked to exit bank because of excessive debt and significant operating losses.
Accomplishments
Completed detailed historical financial data analytics to determine root causes of operating losses.
Evaluated the company’s existing turnaround plan; monitored and communicated progress to lenders and stakeholders.
Developed, implemented, and monitored 13-week forecast model as a tool to monitor cash collateral roll-forward on working capital, and debt service and amortization on a complex $98 million debt structure for the lender group.
Assisted the company in developing a detailed budget model, based on a roll-up of 31 locations and operating unit detail, including encounters, adjustments to rates, staffing levels, and tracking of Medical, Medicare, and governmental grants.
Completed a thorough analysis of operations to identify additional performance improvement processes, including reduction of labor costs, improvement of service efficiency, establishing performance objectives by service division.
Developed and managed exit financing presentation and diligence materials for a $17 million refinancing with potential lenders.
Using combined financial and operating data analytics, EMAGroup was able to evaluate trends from comparative historical performance, and to evaluate service line and operating unit profitability.
Advised senior management team on strategic decision making; providing management with appropriate data and associated analytics to make informed decisions.