In this case, a legal services company went into default on its loan. The PE sponsor was forced by the company’s lender to bring in a turnaround firm to serve as a CRO and to provide the bank with clarity on the company’s finances. After the initial financial evaluation it became clear that marketing and sales issues were at the heart of the company’s problems. The turnaround firm on the case was subsequently able to generate significant additional revenues on the project because it possessed its own marketing and sales advisory.
- The Client – A $20 million legal business services company
- The Lender – A large regional US bank
- The PE Sponsor
- The Turnaround Management Firm – One of the industry’s “finest”
- Michael Roth Advisors (MRA)
- After a 3 day assessment, the company received a detailed sales and marketing action plan. The plan included a pro-active telemarketing and sales campaign that increased RFP activity by 500% in just 3 weeks (without the need for any new spending or resources). Because of the new activity, the company was able to renegotiate the repayment terms of its loan with its lender.
- The lenders in this case received payment in full on its loan.
- The PE sponsor in this case was able to salvage its portfolio company investment and was also able to transfer the telemarketing program learning to other companies within its portfolio.
- The TM Firm managing the case saw an initial CRO and financial assessment assignment case blossom into a long-term marketing and sales implementation case that generated significant incremental revenues for the firm.
- MRA again helped multiple constituencies to benefit from its specialized marketing and sales advisory. In this case the TM firm generated incremental billings, the client generated immediate sales momentum and additional time from its lenders to repay its over-advance, the bank got out “whole” from a distressed situation and the PE sponsor gained valuable management insights which it was able to extend to other companies in its portfolio.