Third largest privately held waste management and landfill company. $300 million in annual revenues. $100 million debt.
- Over expansion (high capex) and poor management oversight caused EBITDA decline, negative cash flow and covenant defaults
- Company was in default under its loan agreement.
- Geographic expansion and focus on top line revenue led to decline in EBITDA.
- Senior management slow to react to deteriorating cash flows and profit margins.
- Family governance issues compounded problems – two cousins as co-CEOs and 90 family members involved in the business.
- Engaged as Financial Advisor and subsequently interim COO
- Refocused company on core operations and on EBITDA improvement.
- Sold off non-core assets (low revenue geographies and land fills), which generated $40 million in net proceeds and had minimal impact on EBITDA.
- Improved reporting, integrating 52 P&L centers into 8 market segments.
- Enacted significant long-term management succession plan for the family-owned enterprise.
- Improved EBITDA by 25% and increased free cash flow by over $15 million.
- Implemented new management structure with single CEO.
- Debt refinanced on 100% senior basis, eliminating $60 million sub-debt.
- Reduced annual interest expense by $7 million.
- Bank repaid 100% upon refinancing and participated in the new financing.