Middle market advisory firm Abraxas Group completed the successful turnaround and restructuring of a private-equity backed industrial services company with an international reach.
The company was struggling with severe capital structure and financial performance issues. Key stakeholders were losing faith, the best employees were leaving and a bunker mentality had set in.
Abraxas Group was brought in to assess the viability of a path forward. Over the course of a six-month engagement, David Johnson, founder and managing partner of Abraxas Group, served first as financial advisor and then as interim CFO during the restructuring.
Results included:
- $60 million out-of-court restructuring completed
- Q1 EBITDA increased 300% compared to prior year period
- Implemented $6 million in annualized cost savings
- Increased enterprise value by 75% (per a third-party valuation)
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“This case presented a number of challenges, but the team pulled together, and we were able to put the company on a course to profitable growth in 2018 and beyond,” said Johnson.
