Case Studies

CASE STUDY I

LINE OF CREDIT REFINANCE PROJECT

Problem

Our client was asked to refinance their working capital line of credit due to repeated covenant violations

Role

As CEO of Quantum Partners, I was retained by the Company as a commercial lending subject matter expert.

Solution

Identify, negotiate with and recommend a lender with terms and conditions most favorable to the Company (to include no financial covenants).

Action Taken

  • Created a package of information that included: a) accrual based historical financial statements in compliance with GAAP; b) three years of projections depicting anticipated revenue growth using funds from the lines of credit; c) and independent market research on the growth of the outsourced court reporter market.
  • Identified potential lenders and negotiated several term sheets on behalf of the Company
  • Arranged meetings with Company management and lenders
  • Recommended the lender with the terms and conditions most favorable to the Company

Results

The Company closed on the credit facilities with the recommended lender with no covenants.

CASE STUDY II

BUSINESS FORMATION CONSULTING PROJECT

Problem

My client wanted to establish a consulting business in the scientific journal publishing industry that would 1) be  in full compliance with all federal, state and local regulations, and 2) fully operational from a banking, payroll, retirement and budget standpoint within 30 days of the start of the formation process.

Role

The Company retained me to develop and implement a business formation plan as described above.

Solution

I recommended an S Corporation as the best corporate structure for ease of accounting, tax regulations and personal liability.

Action Taken

  • Reviewed all documents prepared by counsel
  • Set up a payroll account
  • Set up a SEP retirement plan
  • Created a monthly cashflow/P&L financial model
  • Developed an independent contractor agreement for use with the Company’s clients
  • Recommended an accountant to file corporate and personal tax returns

Provided ongoing consulting on business and financial matters

Results

The Company was open for business within 30 days of the start of the assignment in full compliance with all federal, state and local regulations, banking account opened, and retirement account set up.

CASE STUDY III

SECURED LINES OF CREDIT TO FINANCE ORGANIC GROWTH PROJECT

Problem

A litigation support company (the “Company”) wanted to expand its revenue organically using debt rather than equity. They estimated their capital requirements for the expansion to be $420,000 in the form of a line of credit with an option to term out the facility over three years at maturity; and a $2,500,000 accounts receivable line of credit for working capital.

Role

Quantum Partners was retained by the Company as a commercial lending subject matter expert.

 Solution

Identify, negotiate with and recommend a lender with terms and conditions most favorable to the Company and that would assure the Company it had adequate capital to fund its growth plan.

Action Taken

  • Created a package of information that included: a) accrual based historical financial statements in compliance with GAAP; b) three years of projections depicting anticipated revenue growth using funds from the lines of credit; c) and independent market research on the growth of the outsourced court reporter market.
  • Identified potential lenders and negotiated several term sheets on behalf of the Company
  • Arranged meetings with Company management and lenders
  • Recommended the lender with the terms and conditions most favorable to the Company

Results

The Company closed on the credit facilities with the recommended lender which enabled them o launch their organic growth plan.