"Sometimes having too many opportunities can be more of a problem than having too few." "At the end of the day, people are the main reason for success or failure."
Public Home Builder and New Community Developer
The major investors were locked into a real estate business that was struggling with down markets and high leverage. As CEO and Board Member executed a turnaround; prepared and implemented business plans to exit homebuilding, paydown debt, and sell the company. Provided leadership during a turnaround and was the primary spokesperson for the company. Major accomplishments included reorganizing management - clarifying responsibilities and reducing employees by 50%, changing the approach to the business by becoming a general contractor, reducing unit homebuilding costs and getting better control of schedule and quality, selling non-strategic assets, and avoiding litigation. Also assumed CFO responsibilities to focus on cash management, financial planning, and maintaining banking and investor relationships. The company was sold to private investors.
Major Commercial Bank / Home Builder and Land Developer
As consultant with a national turnaround consulting firm, provided financial advisory services and negotiating support to a real estate lending syndicate comprised of a top tier bank and local banks during the workout of a distressed and non-performing loan facility with an east coast home builder and land developer. Assessed the situation, prepared short term property by property and company level cash flow projections and liquidation analyses, and evaluated alternative recovery strategies and methods. Assisted with borrower negotiations.
Private Entrepreneurial Commercial Real Estate Development Company
This rapidly growing commercial real estate development company acquired and developed land, office, industrial, retail, and housing projects and assembled and entitled land and required a constant stream of capital. Starting with a small balance sheet, raised about $100 million of equity and debt to fund company growth over a four year period.
As Development Partner and V.P - Finance, assisted with the general management the company. Provided accounting and financial management. Sourced and developed specific projects. Managed individual properties.The company was subsequently liquidated during the real esate recession in Southern California during the 1990's.
Estate of Iconic Individual Engaged in Gaming, Real Estate, and Aviation
The Board of Directors of the Estate requested business planning and strategy services for a valuable and large scale urban real estate development subsidiary. The Estate was under pressure as it was illiquid and subject to uncertainty regarding tax matters.
As Director - Finance, worked with a team of consultants and management to develope a solid fact base; evaluate various organizational, market, and financial alternatives; and estimate the present and future market value of the venture. The Estate was advised that the capital costs to pursue the venture were quite high, the time to revenue quite long, the organizational costs also quite high, and success was not certain. The Estate was advised to consider managing its risk by bringing in financial and operating partners. The Estate ultimately and wisely entered into a series of joint ventures that reduced its exposure to the venture, reducing cash outflows and generating cash. The Estate decided to concentrate on its other lines of business and this proved to be a successful long term strategy resulting in liquidity for the heirs.
Major Bank / Regional Apartment Owner / Manager
As consultant with a national turnaround consulting firm - workout a situation with a portfolio of distressed mortgage loans in the NYC region: assess the situations, manage and control cash, develop property by property financial analyses and 13 week cash flow projections, and assist with liquidation. The subject properties were a regional portfolio of apartment projects that were mortgaged to a major bank and in distress. The portfolio was over-leveraged, producing negative cash flow and the company was not well organized. The accounting / control, information systems, administrative, property management, and marketing functions were not functioning effectivley. Basic services were being shut - off, judgment creditors including the IRS were a threat, and constant litigation was the norm. We instituted daily cash management and began to pay vital services and kept the doors open while avoiding litigation. As Consensual Receiver we played the role of asset manager (and specific property manager in some cases) and hired third party property managers to manage and provide accounting services for most of the portfolio, and then assisted with liquidation.
Public Company Engaged in Media Support Services, Home Building, and Land Development
The Board of Directors wanted an independent evaluation of the real estate activities (including over 95,000 acres and about 20 business parks and retail centers) of the company and also advice on the organizational structure of the company as a whole. As consultant, worked independently and directed senior management and external consultants. The engagement included a review and evaluation of the form of organization and related tax issues, property by property financial, market and operational analyses, and the creation of a market driven business plan and strategy with to guide the real estate activities of the company moving forward. After a review of the whole market, the client, who was only serving the entry level market, was advised to broaden its offerings - add different products and products in higher price ranges. The company was also advised to expand its contractor relationships to better manage costs. The engagement also included market research, an evaluation of management and compensation practices, a review and evaluation of: financial reporting, project profitability and cost allocation, management information systems, business practices, water resources, and operations; and a valuation of the company's real estate business. The common stock of this company doubled shortly after completion of the work.
Commercial Mortgage Origination and Servicing Subsidiary of a Global 50 Manufacturing and Financial Services Company
Corporate management and business unit management wanted to determine how to commercialize internal real estate services and technology subsidiaries, maximize the value of the commercial opportunities, and transact the entities. The engagements included evaluating and advising on organizational structure, identifying competitive advantages and disadvantages, identifying and assessing new markets, identifying market penetration opportunities and methods, creating business plans to guide growth and entity valuations. One company was advised to add a series of product and service enhancements (i.e. solutions) to its core software product in order to satisfy customer needs, enter related market segments, and increase revenue. Another company was advised to focus on its core business, expand its valuable and unique service platform and de-emphasize the software technology product that never gained traction due to conflicts with customer standard practice. Also identified product profitability and evaluated product costs and pricing. The companies were acquired by strategic buyers.
Software Development, Sales, and Services Company
Senior management of this small rapidly growing company requested general management and financial management services in preparation for and during a series of strategic buy and sell transactions. General management consulting services included business planning, strategy, and general advice on a variety of topics including business practices, market penetration, organizational matters, and negotiating. The client, who had limited resources, needed to acquire related technology and products in order to survive product competition, so acquisitions were structured using earnout and equity formats. A target market penetration strategy was recommended. A small set of segmented target markets were selected based on the client's product's ability to satisfy key purchase drivers / customer needs. Direct sales using commissioned salespersons aligned sale costs with revenue. Revenues doubled. Financial management services included hands-on accounting and finance support provided on a consistent basis: budgeting, financial analysis and planning, regular supervision and month end accounting, financial statement preparation, maintenance of supporting schedules such as the cap table and services liability schedule, bank reconciliations, cash management, and transaction support. The company has a fairly complicated set of financial matters to deal with on a regular basis and also receives higher level financial and transactions advice. Monthly services were tailored to meet the changing needs of the company. The company was sold to a strategic buyer backed by venture capital using an asset sale format.