Case Studies
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This retail computer hardware business was purchased in 2006 using a $1.5M SBA loan. In the first several months of operating the business, sales did not match financial projections, and the downturn in the economy in 2007 led to increasing difficulty and eventual inability to support their monthly debt service. They floundered for several years, liquidating all personal funds in order to keep the business alive. By early 2010 the owners came to us because they wanted out of the business but were still facing over $1M in personally guaranteed debt to the SBA. We wound down the company and negotiated with all creditors to settle the owner’s personal guarantees.
Total Debt Outstanding: $1,073,000
Payoff of Personal Guarantee: $20,000
Total Debt Forgiveness: $1,053,000
Attachments:
Computer Hardware RetailerFlorida
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A once profitable telecommunication and network solutions business in Texas experienced significant declines in revenue beginning in 2008, as construction and spending significantly slowed. Being a new project based company, it was extremely sensitive to economic decline and therefore found itself in a position where it could no longer support it’s SBA debt. We reorganized this organization and successfully stripped over 1.5 million dollars in debt without interruption of the business. Further, the personal guaranty of the owner was settled for less than 3% of the outstanding balance owed to the SBA.
Total Debt Outstanding: $1,758,337
Payoff of Personal Guaranty: $50,000
Total Debt Forgiveness: $1,520,334
Attachments:
Telecommunications FirmTexas
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In 2007, the client purchased his business from the previous owner. After settling into the business he noticed major discrepancies in the revenue produced when held against the projections used in the business sale. The client tried many different ways of increasing his sales, but the revenue never came close to the projected amount and so he could not meet the loan payments associated with the purchase from the business profits. In 2006 there was an average of $230,000 in sales. That number dropped to $85,000 by January 2010, showing a 60% decline in the Florida market. Different factors such as the many businesses around him and the advertising in publications brought all of his business in. Through the course of ownership the magazines changed to a limited exposure online format and the dealerships, which brought his foot traffic in all closed, leaving the business surrounded by vacant lots. Second Wind Consultants was brought in to assist in the reorganization of this business. We provided guidance and strategy and were able the turn the company profitable. In addition we removed hundreds of thousands of dollars of debt.
Total Debt Outstanding: $849,438
Settlement of Personal Guarantee: $25,000
Total Debt Forgiveness: $804,938
Attachments:
Equipment DealerFlorida
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