Case Study
Implementing a Business Plan, Improving Performance, and Conducting a Refinancing
The Situation
A Top 10 SDM Magazine ranked company providing secured network services, physical/video security services and business analytics tools (consumer, retail and restaurant sectors), was facing debt breach covenants after the loss of a key contract/customer.
Services
Business Plan Assessment
Performance Improvement
Refinancing
The Execution
- Assessed the Company’s 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.
- Analyzed 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.
- Assisted the Company in evaluating new markets and products to increase RMR and improve the Company’s valuation.
- Developed a highly dynamic financial model with numerous “toggles” to evaluate different business opportunities – which became the primary model used to determine future cash requirements from both its private equity and senior financing partners.
- Assisted the Company in the renegotiation of its senior debt facilities including resetting its debt covenants
Identified more than $5MM in annual operating cost reductions and identified potential lenders to provide 3rd party vendor financing to reduce the Company’s cash requirements.
The Results
Our team identified new revenue opportunities and more than $5MM in operating cost reductions. We also resolved debt covenants and re-financed the Company’s senior debt facilities. As a result of our work, our team was engaged in Phase 2 to assist the Company in the transformation of its current technology and roadmap to a new technology platform.