Case Studies

Winner of 2011 TMA “Turnaround of the Year - Small Company” award
Industry: Business Services
Analytics, Inc.

Winner of 2011 TMA “Turnaround of the Year - Small Company” award

MorrisAnderson partnered with Company management to develop a consolidated business plan creating one unified company out of the three operating units, improving EBITDA 40% from $3.0 million in 2009 to $4.2 million in 2010.

The Challenge

  • Company placed into Federal Receivership by senior lender due to loan defaults by parent company and loan guarantees of the three operating companies.
  • Flat or declining sales at two of the three business units.
  • Lack of a comprehensive business strategy.
  • Low employee morale (fear, uncertainty, doubt) amongst highly educated staff.
  • Inexperienced management team.
  • Trade creditors reluctant or unwilling to extend credit and strategic customers unsettled by Receivership.

The Solution

  • MorrisAnderson partnered with Company management to develop a consolidated business plan creating one unified company out of the three operating units.
  • Developed a reliable cash management process to operate from internal cash flows and re-invested in growth expenditures increasing overall enterprise value.
  • Supported the new growth strategy by investing in a new IT infrastructure, purchasing new equipment and hiring additional staff.
  • Managed the investment banking process including; marketing, management presentations, due diligence and final negotiations required for closing.

The Results

  • EBITDA improved 40% from $3.0 million in 2009 to $4.2 million in 2010.
  • Trailing twelve month improvement of sales by 23%.
  • 53 NDAs signed, with nine letters of intent received from prospective bidders.
  • Company sold for $23.0 million to stalking horse bidder approximately one-year after receivership process began.
  • Senior lender improved recovery by $18.0 million (from $5 million) after restructuring fees.
  • All jobs were saved and company is poised for significant future growth.