industry
Technology, Media & Telecommunications

Refinancing & improving performance for a technology-managed services provider

Key metrics:
  • Identified new revenue opportunities
  • Identified $5MM in operating costs reduction
  • Successful renegotiation of debt facilities​​
Value levers pulled:
  • Business plan assessment
  • Financial and operational performance improvement
  • Refinancing

Picture this...

You’re a Top 10-ranked company by SDM Magazine, providing secured network services, physical/video security services, and business analytics tools (consumer, retail, and restaurant sectors). After losing a key contract/customer, you’re facing debt breach covenants and need to improve performance.​

You turn to Accordion.

We step in to identify, rectify, and evaluate new opportunities while also targeting debt covenants. Specifically, we:

  • Assess your business plan, including the development of a dynamic financial model, identification of revenue enhancement and cost reductions opportunities, and identification of alternative sources of equipment financing.
  • Analyze customer acquisition costs, customer profitability, stability and scalability of the fixed-cost structure, and up-front customer equipment cash requirements with the view of reducing annual cash requirements.
  • Assist in evaluating new markets and products to increase RMR and improve your valuation.
  • Develop a highly dynamic financial model with numerous “toggles” to evaluate different business opportunitieswhich becomes the primary model used to determine future cash requirements from both private equity and senior financing partners.
  • Help in the renegotiation of senior debt facilities, including resetting debt covenants.
  • Identify more than $5MM in annual operating cost reductions, as well as potential lenders to provide third-party vendor financing to reduce cash requirements.

Your value is enhanced.

You now have new revenue opportunities and more than $5MM in operating cost reductions. We also resolve debt covenants and refinance your senior debt facilities. Our team stays on in Phase 2 to assist in the transformation of your current technology and creation of a roadmap to a new technology platform.

 

Enhanced value:

Through the transformation process, you:

  • Identified new revenue opportunities
  • Identified $5MM in operating costs reduction
  • Successful renegotiation of debt facilities