Corporate Finance Solutions
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Comprehensive corporate finance
Background - Building materials manufacturing company with term debt and working capital debt at the corporate, subsidiary and divisional levels wanted to increase funding capacity for growth and minimize costs and risk.
Solution - Identified opportunities to improve cash flow and minimize risk of the indebtedness in the current state and increase the funding capacity for growth in the proposed state, including consolidation and refinance alternatives, restructuring financing terms, equity opportunities and steps to take out hidden costs. Developed the current state improvements by matching the term and amounts of the debt service requirements to the remaining useful lives of the underlying assets, and highlighting mismatches of terms and values of the assets and the debts.
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Financing alternatives
Background - Temporary housing company with multiple term debt obligations had challenges meeting debt service and other cash flow requirements, and needed to improve cash flow and return on invested funds.
Solution - Determined the debt service requirements and terms of the current state debt instruments and amounts, patterns and terms of rental collections, and identified cash flow challenges created from the mismatched debt service requirements and cash flow. Developed a comprehensive refinancing structure to improve cash flow and return on invested funds through several alternative company wide debt refinancing solutions, sale-leaseback opportunities and a secondary equity instrument.
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Debt restructuring
Background - Health care system experienced cash flow difficulties from a combination of growth, inefficient operations and pressures from third party payors. The company was obligated to multiple mortgages, equipment term debt instruments, and working capital debt for operations and in connection with the growth.
Solution - Identified opportunities to improve cash flow through a system wide debt consolidation and restructuring, and improvements to the billing and collection processes. Determined the root causes of the accounts receivable collection delays for balances due from third party payors, and developed an accounts receivable improvement plan with action steps to improve internal billing and monitoring processes, and accelerate collection from payors. This solution also included a performance improvement review of the health care system operations that developed improvements to the planning and oversight processes, and operational changes to lower costs.