EMAGroup brings decades of restructuring and insolvency leadership experience among its senior professionals, involving some of the most complex cases in both in-court and out-of-court proceedings. This level of experience is critical to achieving the best possible outcomes for businesses facing financial restructuring or a potential wind-down of business operations. Our Certified Insolvency and Restructuring Advisors will triage the business, identify strategic options to maximize enterprise value to the estate, minimize liability to the stakeholders and, as appropriate, assist in the implementation of agreed-upon strategic options. These options may include:
In support of the strategic plan to restructure or wind down the business, EMAGroup can also provide interim management solutions, serve as Chief Restructuring Officer, negotiate Restructuring Support Agreements, or be the assignee.
What differentiates the EMAGroup team is experience in complex operating and business matters where recovery or preservation of value can be meaningful to all parties involved. Often the value proposition is in having experienced the situation before, or in deep knowledge of the industry and business issues. Having served both as a fiduciary and as a financial advisor to fiduciaries, EMAGroup professionals are highly qualified to assist where a fiduciary is needed. EMAGroup professionals have experience in the following roles either directly or as financial advisors:
EMAGroup has provided services to fiduciaries including forensic accounting, claims resolution, asset dispositions, intercompany analysis, preference and avoidance action analyses, claims and disbursement management, and accounting support.
EMAGroup helps clients manage and assist with leadership through a complicated process that can involve a hostile creditors’ committee, a contentious bank or bondholder group, or a legal process that is complex and far beyond the normal course of business for any executive team. Professionals at EMAGroup have been involved in the bankruptcy proceedings of hundreds of companies, from large corporate entities to small family businesses.
EMAGroup will provide comprehensive case management services, including pre-bankruptcy planning, assistance and oversight of financial information preparation including schedules in support of first day motions and ongoing bankruptcy reporting, maintenance of cash collateral budgets, assistance with 363 sales, sell-side due diligence support, communications with parties-in-interest, litigation support for preference and avoidance actions, and coordination with other professionals to avoid duplication of effort.
Forensic Accounting and Investigations
The most common theme in distressed middle-market companies revolves around the lack of accurate and timely financial statements. And, sometimes there is a thin line between intended and unintended fraudulent reporting. Even with audited financial statements that capture year-end corrections, adjustments, and selected restatements, there is a big gap in having useful information to evaluate and properly operate the business.
A successful turnaround and restructuring process requires having access to detailed quality information and reporting. So, for companies in transition, we work with the management team to reconfigure detailed financial information in a useful manner. We work to reconcile the financial general ledger to the production ledger to the operating detail, so it supports the data analytics needed to evaluate period results in a timely manner. With that baseline, we can better understand the historical results, perform data analytics, and find the root causes of deteriorating performance. It is off that baseline EMAGroup can help guide the company in preparing a budget that is measurable, meaningful, and can support a reconciliation against improved working capital and profitability.
For lenders, debt holders and creditors, we investigate the historical comparable detail to understand what happened to the business. We analyze and evaluate the historical quality of earnings reported and assess the changes and adjustments that may have been made to reporting. We find answers to key questions that help obtain a better recovery: What happened to the collateral base and working capital availability? How do the earnings tie to depletion of cash and working capital? Was the inventory value overstated because of improperly capitalized costs? Were monthly cut-offs and accruals appropriately managed and prepared? Were there changes in accounting methods and practices that allowed earnings to temporarily appear better?
EMAGroup team members are Certified Public Accountants, Certified Insolvency & Restructuring Advisors (CIRA), Certified Public Accountants with a financial forensics specialization credential (CPA/CFF), Certified Global Management Accountants (CGMA) and Certified Fraud Examiners (CFE).