Burke Capital Corporation (“BCC”) recently completed a successful client project which resulted in a sale valued at 12X trailing EBITDA, the lender realizing an IRR of 30% and the retention of all employees and customers in a newly energized, growing company.
We’re often asked, “How?”
During the eleven month engagement, the client successfully utilized all four Burke Capital service offerings:
Governance & Strategy
Crisis Management & Insolvency
Value Accretion, Growth & Exits, and,
Capital Formation & Restructuring
BCC was introduced to the company by its senior lender, who was at wit’s end. The borrower had consistently missed covenants and forbearance terms and while a new, more stringent forbearance had been offered, they had refused to sign for over six months. BCC was called in to find a mutually acceptable solution to an untenable, deteriorating situation.
Following a rapid, yet comprehensive business assessment, BCC negotiated a forbearance acceptable to both parties. It included a complete exit for the lender within ten months. That deadline forced management, with BCC guidance and support, to “right the ship” and quickly achieve monthly sales and profit forecasts to gain market credibility.
The plan and negotiated forbearance also included: 1) Implementation of the BCC 13 week Cash Management Regimen™, which led to greater discipline and quick profit gains. 2) New, independent Board and updated governance procedures for the strategic visioning and oversight of the company. 3) Changes to the senior management team and procedures which included new reporting and performance assessment policies. 4) New branding and marketing tools as well as a new sales compensation plan. 5) The hiring of a prestigious investment bank to assist in maximizing value and expediting the recapitalization.
At project completion, it was a homerun for the shareholders, the lender, the employees and customers. Burke Capital was able to foster a team effort between management, the lender and BCC that created value that no one initially believed was possible.
The Burke Capital team of highly experienced professionals focus on two things: fixing problem companies and generating profitable, sustainable growth. Opportunities to engage company principals are limited, so it’s important to act decisively. A quick phone call or e-mail unleashes the power of Burke Capital for your organization.