Situation Analysis of a Private Secondary Education School
Service:Financial Advisor to Debtor
Company:Private Secondary Education School
The school is a modern Orthodox yeshiva located in New York, made up of four divisions: Pre-K, Elementary (Grades K-5), Middle School (Grades 6-8) and High School (Grades 9-12). This private high school was faced with an imminent default under its bond financed mortgage obligation.
At the request of the letter of credit provider, Focus Management Group was engaged by the school as Financial Advisor to evaluate its near-term and intermediate-term financial situation, make recommendations to increase operational efficiency and provide recommendations on a course of action to right-size operations.
• Prepared a situation and cash-flow analysis for the school Board’s use as well as for presenting to the lending institution. The analysis included both one-year and five-year cash forecasts.
• The report proposed detailed actions to minimize the cash shortfall.
• Recommended detailed corporate business office changes to enhance budgetary and cash controls, as well as improve financial reporting and cash forecasting abilities.
• Provided recommendations to the school with regards to its relationship with the lender.
With Focus' recommendations, the school was able to satisfy its lender with respect to its go-forward operating strategy.