Cell Phone Service Provider. $25 million in annual sales. $50 million in secured debt. $1 million annual EBITDA. Over 1.1 million service population. Family-owned business.
- This highly leveraged business had poor financial reporting, weak management and business systems and a strong-willed, entrepreneurial owner.
- Its debt had reached $50 million and several creditors were threatening an involuntary bankruptcy.
- Operations, costs and systems were poorly managed.
- MorrisAnderson consultant engaged as interim COO.
- Cut costs, helped convert to new core-business systems, negotiated major creditor disputes, restructured agreements with several telecom vendors and expanded roaming revenue sources by limiting revenue leakage while consolidating pricing and service offerings.
- The company moved from $1 million annual EBITDA loss to a $1 million EBITDA profit.
- The core business system upgrade/conversion reduced costs, increased revenue, accelerated invoicing, and significantly improved customer service and operational control.
- Lender paid down $7.4 million on its debt.
- Permanent COO was retained.