Industry: Commercial and Residential Property Management
Challenge: The bank had lost faith in the ownership group to properly manage and operate the portfolio of properties covered under the property management agreement controlled by the bank. The company was bleeding cash and unable to meet current obligations including servicing its debt and property taxes. Lender was increasingly skeptical of management’s ability to properly run the operations, provide accurate and timely financial information, and maintain the properties in good working order.
Solution: Hired as financial advisor to act as interim CEO to evaluate the competency of management and restructure the company in order for the ownership group to maintain operations of the properties and the property management contract.
Results: Successfully completed the restructuring of the company by replacing middle management with competent employees. Introduced weekly and monthly reporting requirements to be submitted to the bank. Brought the bank in to act as a partner rather than an adversary. After one year the company is flourishing both financially and operationally. Capital improvements are being scheduled and maintained and all debt obligations are current.