Focus Management Group

Industry:

Publishing & Media

Service:

Cash Flow Management

Company:

Urban Magazine Publisher

Situation:

A magazine publisher with an urban distribution was losing money and unable to secure financial backing or restructure a huge debt. Declines in the music industry and in advertising worked against the business. Foreclosure or liquidation was imminent, which would have resulted in a significant and unpalatable loss for its lender.

Focus Scope:

Focus Management Group was retained by the Company's lender to undertake an in-depth financial analysis of the business and to determine the best course of action with a view to maximize the lender's recovery.

Tasks Performed:

• Conducted a detailed 13-week cash flow analysis of the business, including the review of the Company's financial forecasts
• Reviewed revenue and cost structures
• Identified areas for cost rationalization
• Provided feedback to the lender on the appropriateness of various business development strategies

Results:

• Following Focus' analysis, the company significantly reduced cash burn while it continued to seek a strategic buyer.
• Ultimately, the company was sold to a leading competitor in the industry at a significantly higher price than expected. A liquidation was averted, which helped to maximize the lender's recovery.