Helping Owner Salvage Value After Industry Collaspe


Dayton, Ohio


Machine shop manufacturer of precision tooling and parts primarily for aerospace and packaging industries. $160 million in annual sales. $60 million credit facility, five bank lenders. $13 million equipment leases, four lessors.

  • Company grew via acquisitions funded by bank debt – high leverage and tight liquidity.
  • Company incurred loss issues with integrating two of the recent tuck-under acquisitions. Delays in transitioning accounts resulted in push-out of shipments/revenue causing a significant miss to financial projections and triggering defaults to FCC and Leverage covenants.
  • Lenders decided to exit the credit, forbear on defaults with tight timeline for refinancing. Company obtained terms from non-bank to refinance in 90 days.
  • Then a dramatic decline in business and leisure travel (caused by Covid) halted refinancing prospects for the aerospace business. Without a viable exit, the Lenders had to hold until capital markets returned.
  • COVID ultimately reduced annual revenue by 25% and EBITDA by 50%. Company was on trajectory to exhaust cash, impairing Lenders’ 100% recovery.


  • Developed plan to reduce fixed costs that included closing two facilities and obtaining rent concessions from landlords.
  • Advised management to ignore customers’ requests to continue to build inventory orders at pre-COVID demand levels, preserving cash. Subsequent workdown of Inventory, adjusting for new revenue run-rate, helped provide cash liquidity.
  • Established diligent Accounts Receivable monitoring and collections that mitigated an increase in charge-offs and DSO.
  • Identified pricing issues, made recommendations to improve bidding process and costing methodologies.
  • Obtained $10 million loan through the Payroll Protection Program.
  • Negotiated forbearances and attainable amendments to debt service with Lenders.
  • Periodically tested capital markets, restarted financing initiative when closing amounts could be reasonably attained.
  • Maintained weekly financial projections and communications with Lenders and Lessors on initiatives and liquidity.


  • Cost-savings and efficiency initiatives resulted with stabilization of the Aerospace business EBITDA to break-even by year end.
  • Improvement in working capital generated over $6 million cash liquidity, a lower, and sustainable, cash conversion cycle.
  • 6 months later attracted capital proposals sufficient to payoff 100% bank debt plus provide go-forward liquidity.
  • The Company closed on its recapitalization with a new 80% owner, repaying the bank debt and injecting the business with sufficient liquidity to endure and rebound.
  • Equipment lessors, satisfied with liquidity forecasts, consented to continue.
  • Bank lenders endured twelve months of forbearances (5), progressed from an impaired situation to a full recovery.
  • Owner avoided a Chapter 11 which would have been personally devastating.

Daniel F. Dooley

Dan Dooley, CTP, is a Principal and CEO at MorrisAnderson based out of Chicago. He has a strong national reputation in crisis management, operations improvement, debt refinancing/restructuring and C-level positions. He is a frequent speaker at industry conferences and a regular author for industry periodicals. Dan has served on the Board of Directors of both Read More

Daniel Wiggins

Daniel Wiggins is a Principal at MorrisAnderson with notable turnaround and transaction experience. In building value for his clients Daniel focuses on enhancing stakeholder relationships that optimize business continuity and he frequently leads negotiations with clients’ key suppliers, customers, and lenders – particularly during restructuring initiatives. An additional focus of Daniel’s engagements is mentoring management Read More

Michael G. Boudreau 

Michael Boudreau CPA, CTP and CFF is a Director at Morris Anderson.  Mike has over 25 years experience delivering professional services and exceeding expectations.  Mike’s expertise includes Workout & Restructuring, Corporate Finance / Debt Refinancing, Operations /Enterprise Improvement and C-level positions. Mike is a frequent author for industry periodicals and speaker at industry conferences. SERVICES Read More