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CPA Success

A marine construction company contacted CPA regarding the sale of their business.  They had met with multiple business brokers who had determined that the maximum price that could be expected was $7.5m.  Upon our review, CPA discovered several factors that made this deal a prime candidate for our Exit Strategy Analysis, which resulted in numerous recommendations.   We worked through these recommendations with the company for a year and the owner realized $11.3m upon the sale.. More >>

 

A customer of Commercial Bank was unable to repay their line of credit and was therefore in default on an approximately $3.8m of debt.  CPA was able to evaluate the company, propose a restructuring plan and work with Commerce Bank to provide the necessary time to sell the company.  The Commercial Bank was paid in full and the owner netted approximately $4m.  This turn around from insolvency to the owner’s receipt of $4m was a result of the aggressive and creative solutions of a CPA restructuring plan.  More >>

Examples of CPA success:

A customer of Commercial Bank was unable to repay their line of credit and was therefore in default on an approximately $3.8m of debt.  CPA was able to evaluate the company, propose a restructuring plan and work with Commerce Bank to provide the necessary time to sell the company.  The Commercial Bank was paid in full and the owner netted approximately $4m.  This turn around from insolvency to the owner’s receipt of $4m was a result of the aggressive and creative solutions of a CPA restructuring plan.

A customer of Commercial Bank with $1.1m of debt was in default on a loan and an equipment lease.  Commerce Bank restructured the loan, which was essential to allow CPA time to sell a majority share of the company.  This company had the capability to generate a considerable amount of additional sales, but lacked the capital to fulfil these sales and shop product.  The company needed a higher valuation to sell for a price that would satisfy the debt obligations and the owner’s needs.  Therefore, CPA proposed a restructuring plan: if the company could book these additional sales to show potential Buyers the considerable increase in the Orders Received and the Work Backlog and CPA prepared a Capacity Report showing the steps needed to accommodate these additional sales, then Buyers would pay for this obvious growth.  Although the company still needed resources to fulfil these orders, the company’s orders Received and Run Rate increased and CPA closed this transaction at a higher sale price than anticipated because of this documented growth.  With the addition of an equity partner who brought capital and new financing to the company, the owner paid the company debt, received a substantial amount of cash, was able to stay on at the company and the Orders in House were fulfilled.

The owner of a company had died and the widow was left with the company and its debt obligations.  The widow contacted CPA for assistance.  The critical issue in this case was acting quickly as the company will lose significant value if it is haphazardly operate without an experienced owner.  CPA sold this company a completed the transaction in 36 days.  As a result, the widow fulfilled the debt obligations and received cash.