Case Studies

 

 

Multi-Brand Casual Dining Restaurant Company

 

The private equity firm Centerbridge Partners had an immediate need to engage a Turnaround Consultant who could also act as Interim Chief Financial Officer for a multi-brand restaurant company operating approximately 130 restaurants and 50 franchised locations. Two months into the initial engagement, we then assumed the additional role of interim Chief Executive Officer. The principal objectives of the assignment were to stabilize the financial and operational aspects of the company in order to preserve enterprise value while helping to facilitate a merger transaction which would allow for a recapitalization of the combined business. All objectives were accomplished over an approximate eight-month period which then resulted in a successful merger. Over this interim period the business improved to the point where positive comparative sales was accomplished for the major brand, operating cash flow increased and stability was brought to the work force, thereby increasing the value of the enterprise as a merger partner.  

 

Mid-Size Fast Casual Dining Restaurant Company  

 

The private equity firm Freeman Spogli had recently invested in a Midwest fast casual dining scalable restaurant concept that did not have the financial controls nor the financial and operational reporting capabilities required to effectively manage a rapidly growing company. We were engaged to work with the Chief Executive Officer and his senior management team to assess the required organizational changes, system deficiencies and financial and operational reporting improvements necessary to achieve the required managerial control. During this ten-month engagement it was necessary for us to assume the Interim Chief Financial Officer position and to participate in the recruitment of a permanent CFO. A comprehensive set of dashboard reports was implemented, and a complete comprehensive management reporting package was installed which was not only instrumental in improving the controls and management process within the company but also to the ongoing oversight requirements of Freeman Spogli.  

 

Mid-Size Fast Casual Dining Restaurant Company

 

The private equity firm Argonne Capital engaged us to assume the senior management roles, stabilize the financial and operational performance of the company, all while assisting in determining and facilitating a new strategic direction. This had historically been a troubled investment for Argonne which was reaching the end of its holding period for the firm. As a result, we assumed the CEO, CFO and COO roles and over an approximate eight-month period operated the business to break even cash flow, relocated its headquarters and helped to orchestrate the sale of the business to an experienced restaurant operating group.

 

Fully Integrated Poultry Processing Company    

 

This engagement involved a privately held large poultry processing company based in Georgetown, Delaware. We were initially asked to become an independent board member by the bank group which had assumed control of the business under a Forbearance Agreement. After a period of approximately two months we were then asked to replace the then turnaround consultant and also to assume the Chief Executive Officer role.  After assuming this role, over the next six months we spearheaded an effort to sell the business but as a result of increasing corn and soy meal prices it became evident that filing a reorganization plan under Chapter 11 in the Delaware Courts and then orchestrating a 363 Bankruptcy sale process was the best course of action to increase value for the senior lenders. This process did result in the lenders realizing significantly more in proceeds than originally planned.