Case
Study: Telemessaging Centers
Crisis Management, Cash Flow Management
Company: $40 million inbound telemessaging centers,
serving doctors, lawyers, construction companies and others needing instant
messaging
Situation/ Tasks Performed: The Company was a roll
up of individually owned message and call centers. The Company overpaid
for its acquisitions and grew too quickly. The operating costs and corporate
overhead outstripped the Company's capital base. Management was more concerned
with revenue growth than profitability. TRG was brought in when cash levels
had been virtually exhausted. The goal was to maintain viability while
consolidation could occur or a buyer could be found.
Results: TRG successfully kept the Company alive
as interim CFO for nearly four months beyond when cash was expected to
be depleted. During this time, TRG helped facilitate the sale of the business
to a competitor who then reached an understanding with the creditor group.
TRG expects that each unsecured creditor reached terms with the new owner
and the secured lender will ultimately be paid in full. All parties were
pleased with the outcome, given the dire circumstances the company was
facing.
Nature of Assignment:
Primary: Crisis Management
Secondary: Cash Flow Management
Industry: Information Technology; Telecommunications
|
