Why Clients Use Rife
• Proven results |
• Integrity, credibility, and respect |
Rife & Associates is Your Partner for Success.
SAMPLE CASE STUDIES:
Bank Advisory Engagement
Profile:
Bank with $11mm of exposure with a $25mm masonry contractor.
Situation:
Borrower was not making loan payments and repeatedly overdrafting cash accounts.
• Borrower experienced significant operational losses.
• Borrower management exhibited questionable behavior.
Procedure:
• Developed financial projections model to determine viability of business and give bank strategic plan options.
• Arbitrated relationships between principals of construction business and banking client (first position secured creditor) to maximize debt recovery.
• Managed relationships with key vendors, union representatives, employees, general contractors, and project owners.
• Negotiated payment arrangements and settlements with unions and vendors.
• Oversaw and supervised the completion of all remaining contracts and the collection of all receivables on behalf of the bank.
• Provided monthly and on-demand financial reporting of debt recovery status, cash flow of business, projected recovery of funds, collections, and project revenues and expenses.
Results:
• Advised bank to proceed with orderly liquidation, maximize sale of equipment, and maximize collection of receivables through completion of long term contracts.
• Led company through wind-down process, liquidated assets of borrower in orderly fashion and maximized loan recovery for bank.
Residential Home Development Project
Profile:
Turnaround of a 273-home residential development project.
Situation:
• First six months operating loss of $200k.
• Developer required intensive restructuring of project costing procedures and pricing model.
Procedure:
• Implemented activity-based costing system model to determine true cost of base construction as well as structural and cosmetic options.
• Led developer in executing strategic initiatives, reporting unit costs, and in reducing costs and increasing per unit sales price.
Results:
• Project immediately turned profitable and returned $6mm in 2 years on the original $1.5mm investment.
Musical Instrument Distributor
Profile:
Turnaround of a $9mm musical instrument distribution company.
Situation:
• Company was highly over-advanced on bank line of credit (asset based formula).
• Significant vendor debt threatened bankruptcy.
• Majority owner/operator was absent from business due to health problems.
Procedure:
• Initiated full-scale changes to business operations to increase margins and continue operations.
• Negotiated long-term contract to sell for manufacturers and distributors.
• Closed exclusive distribution deal with Japanese manufacturer and West Coast distributor.
• Developed business valuation using historical and projected pro forma financial data.
• Negotiated sale of company to third-party, leveraging the increased value of the new distribution agreements.
Results:
• Sale of company netting shareholders $625k.
• Extinguished all bank debt obligations in full, obtaining release of all personal assets.
Dinner Theatre & Country Club
Profile:
Orderly liquidation of $8 mm Dinner Theatre and $3mm Golf Course.
Situation:
• Entertainment business with massive advanced ticket sales and vendor liabilities.
• Golf Course property with large vendor liability and need to maintain going concern status through property sale.
Procedure:
• Developed financial projections model for use in determining future performance of the businesses and for use in strategic decision-making.
• Operated business to minimize liability.
• Liquidated business assets to pay off secured creditors and obtain release of shareholder personal assets.
• Acquired two levels of working capital financing (bridge loans) necessary to operate the business through the wind-down.
Results:
• Led company through an orderly wind-down process
• Secured release of personal assets for shareholders.
Egg Farm
Profile:
Agricultural concern (large egg farm conglomerate) with $20mm sales and total debt of $20mm (line of credit, mortgages and term loans).
Situation:
• Farm was experiencing shrinking margins due to a sharp reduction in commodity prices in a fixed expense industry environment.
• Farm lacked ability to service large mortgage payments as business lacked sufficient cash flow.
Procedure:
• Managed cash flow.
• Supported owners in decision-making and vendor management.
• Led search for candidates to refinance and restructure debt, to purchase land, and/or to purchase business enterprise as a going concern.
• Managed collection of large insurance claim providing cash flow to continue operations through sale date.
• Negotiated deal to liquidate farmland, machinery, and livestock assets.
Results:
• 100% payoff of secured creditors.
• Obtained full release of shareholder’s personal assets and consulting contract for shareholders.
Crane & Rigging Company
Profile:
Turnaround of crane company with $15mm in sales and total debt of $15mm (line of credit, mortgages and equipment loans).
Situation:
• Company was unable to make debt service payment.
• Company experienced shrinking margins and large vendor debt.
• Bank considered liquidating on a forced liquidation value that would create an estimated $8mm loss.
Procedure:
• Acted as CFO and CRO (Chief Restructuring Officer).
• Developed financial models and projections, as well as sales, productivity, costing, and profitability performance measures.
• Led execution of long-term financial and operational restructuring.
• Negotiated with 12 secured creditors, unions, and numerous unsecured creditors to stabilize cash flow and secure payment concessions and savings.
Results:
• Within 9 months, led company to EBITDA increase on a trailing twelve-month basis from $1.66mm to $4.2mm, enabling business to service restructured monthly debt payments.
• Provided for repayment of $2mm in debt principal to senior lender.
• Company continues to thrive and was able to expand into crane dealership market.
