Focus Management Group

Energy Industry Experience

Oil & Gas Equipment and Services Provider

Industry:

Energy

Company:

Oil & Gas Equipment & Services Company

Situation:

An oil and gas equipment and service provider was formed upon the completion of a highly leveraged roll up of 3 separate companies into public shell entity.  Almost immediately after inception, all of the Company’s operations experienced a sharp decline in revenues due to market conditions. The Company defaulted on its debt covenants with its Lender, resulting in the Lender being faced with the decision to approve over advances on revolver debt or allow the Company to go out of business.

Focus Scope:

Focus Management Group was engaged to perform a situation analysis of the Company and perform the necessary measures to maximize recovery.

Tasks Performed:

  • Analyzed and evaluated Company’s business model and assessed Company’s financial projection and cash flow forecast for reasonableness and attainability
  • Reviewed cost control initiatives already undertaken by the Company and determined opportunities for efficiency improvement and additional cost rationalization
  • Assisted the Company in developing and enhancing its liquidity
  • Assisted the Company in the hiring of a CFO/Controller

Results:

  • Focus’ involvement resulted in the Company turning around annualized EBITDA performance within a nine month timeframe from negative $2.0 million to positive $1.5 million, bringing its loan facility back into compliance in the process.
  • Focus Professionals maximized the lender's recovery, who was repaid in full.
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