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Case Study

Evaluating Restructuring Alternatives in Distressed Sale

Team Size
1 Managing Director, 1 Director, 1 Vice President
Project Duration
4 months

The Challenge

A $250mm revenue sales and services training company experienced a severe liquidity crisis and was facing a potential shutdown after executing five bolt-on acquisitions without realizing full synergy benefits. This sponsor-backed company was in default with its lenders and delinquent in its sponsor reporting. Internal liquidity forecasts proved unreliable given limited resources and turnover in the treasury department. Accordion was called on to be a partner in this critical time.

Services

Process & Controls Implementation

Actionable Business Analytics

13-Week Liquidity Forecasting

The Execution

  • Met with the CFO and coordinated with the lender committee to align on reporting requirements.
    • Immediately analyzed key cash outlays, identified multiple liquidity enhancements in working capital and payroll, buying much-needed runway for decision making.
    • Worked with department heads across multiple business segments and geographies to develop standardized reporting metrics for cash and liquidity forecasting.
    • Coordinated with various internal teams to pressure-test and finalize next fiscal year budgets.
    • Re-engineered internal cash and liquidity forecast model with improved forecast methodologies and dynamic update capabilities for AR/AP activities.
    • Implemented new weekly cash and liquidity reporting framework for management and lender committee and led weekly update meetings with the lender committee.
  • Provided guidance to the CFO throughout negotiation of the credit agreement, analyzing the impact on the cash forecast given the various scenarios.
  • Reduced the project staffing levels to meet the client’s needs as the re-engineered cash and liquidity forecast model was implemented.

The Results

Accordion’s team provided the Company and lender meaningful reporting and analysis that helped monitor and drive decision making during the company’s restructuring. We delivered a flexible resource deployment to meet the client’s ever-changing resource requirement. As a new credit agreement was signed and long-term staffing needs were filled, we ensured the seamless transition of our contributions to the Company employees.