Successes

A direct mail printer suffered significant revenue declines from $65 million to $20 million over a four year period as direct marketing expenditures across all industries were cut and redirected to newer media. A multi-million dollar investment in new equipment, acquired in anticipation of potential work under a new business model which would take several years to develop, proved to be ill-timed and severely impacted the company’s viability.

Under pressure from the senior lender to exit the credit, Kinsella Group was engaged to stabilize the business and then move to market.  Within 60 days of engagement, headcounts were dramatically reduced, expenses slashed, cash flows turned to positive and the lender extended its forbearance agreement.

Kinsella Group conducted a focused sale of the Company’s core product line.  The buyer, a division of a global corporation, acquired a package of new customers and unique equipment and processes, creating new opportunities.  The sale generated cash to retire bank debt, consulting and non-compete agreements for the majority owners, and allowed for liquidation of other assets of lesser value.

Kinsella Group’s long history of turnaround and restructuring work has equipped us with the unique skills required to identify opportunities in challenged situations, where a value on sale well in excess of a “multiple of adjusted ebitda” or “net liquidation value” can often be obtained.

After taking over the operations of the family business—a retail store selling nurses’ uniforms—the second-generation owners successfully transitioned the business into a $55-million direct marketer of medical apparel. The company became a nationally recognized leading cataloger with a superb reputation for customer service.

A long-established manufacturer of laminations for the wire and cable, aerospace and flexible-packaging industries was facing apparently insurmountable hurdles: Revenues had declined from $45 million to $22 million, losses were mounting, senior-debt covenants had been violated, subordinated debt was in default and payments to unsecured creditors were substantially past due. Furthermore, on the day that Kinsella Group was engaged by the company, the senior lender announced that it would not enter into what would have been its eighth forbearance agreement and would begin liquidation proceedings in 60 days. 

A large Midwestern mechanical contractor with three separate operating divisions was pressured by its lender to sell its one unprofitable division. The division had lost money for three full years and was generating losses going into the fourth year. After learning that the general manager of the division had made an offer to buy the business at a fire-sale price, Kinsella Group persuaded the owner to allow it to market the business through a disciplined effort that focused on key competitors for whom the division’s customers and unique personnel capabilities would have particular value. 

A New York-area specialty printer, with operations in the vicinity of the World Trade Center, suffered a loss of 30% of its annual revenue in the 12 months following the terrorist attacks of 9/11. Mounting losses and substantial debt, some of which were the result of well-intentioned post-9/11 lending programs, further crippled the company and nearly ended its existence altogether. 

As a result of significant financial losses and its default on a number of loan covenants, a $15-million designer and fabricator of specialty equipment, grain silos and dust-collection equipment for the grain-handling industry had been transferred to the workout section of its bank. Given the company’s inadequate financial controls and partially implemented MRP software, which was masking significant inventory and production problems, the bank was pressing for liquidation.