Oil & Gas Equipment and Services Provider
Company:Oil & Gas Equipment & Services Company
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 Management Group was engaged to perform a situation analysis of the Company and perform the necessary measures to maximize recovery.
- 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
- 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.