Case Studies

Success Stories

Start Ups

Situation

❑Early crypto founder developed proprietary trading algorithms for his own use and success

❑Established a company to develop FinTech software and platforms for trading

❑FinTech company fell behind on the development of a crypto exchange for the institutional trading market

❑MLA hired to assess the situation

❑Significant and embedded strategic misalignment identified between CTO and founder

Actions

❑Assumed interim COO role to lead business and determine a path forward

❑Simultaneously dissolved development organization and shifted strategic focus to investment management

Results

❑Entity recruited and hired CEO and traders to become a successful crypto investment firm

Situation

❑Outpatient interventional radiology practice, a dynamic physician with 1 location, 10 staff, ~$1MM revenue, break-even.

❑Performing a wide range of services: biopsies, incontinence, and venous reflux.

Actions

❑Refocused business on a niche strategy, developed with the goal to win in outcomes and earnings.

❑Developed, implemented, and continuously refined a marketing machine to educate physicians and patients.

❑Established operational processes that optimized the treatment of patients with diagnosed needs.

❑Fostered a culture of high quality, warmth, and transparency during rapid growth.

Results

❑Grew to $20MM+ in revenue in 4 years.

❑Expanded to 3 major cities, 100+ staff.

❑Published outcomes well-exceeding national averages.

Situation

❑$800MM specialty pharmacy in distress due to lack of focus on collection.

Actions

❑Prioritized collection of aged accounts with strict rules on working balance to zero.

❑Significantly improved controls before products were shipped that collected payment up front and limited risk of collection.

❑Retained patients by keeping mechanisms for patients with financial need to continue obtaining medication.

Results

❑29% revenue and 15% volume increase year over year.

❑Collected $9.7MM of AR >120 days old in one quarter, 140% over the prior period.

❑A viable, profitable entity emerged

Situation

❑A health services company experiencing rapid growth, with a controlling ownership stake recently acquired by a Private Equity Group (“PEG”).

❑Within a year after the acquisition by the PEG, the company had doubled its number of sites of service and significantly increased its geographic footprint.

❑Direct Labor costs had increased by 26%, with a corresponding drop in Gross Margin.

Actions

❑MLA performed a 2-week assessment to understand the situation and develop a path forward

❑To quickly improve operating performance, MLA built an interim labor reporting system, including the following actions:

Identified and addressed significant data quality issues; sharing these with all users

On an organization-wide basis, identified the need for visibility into the daily schedule for the upcoming week and active management of Clinical Therapists (i.e., hourly, variable labor) as key points of management focus

Developed a vision for process improvement; identifying key activities to be performed and associated owners, along with the impact on systems and operations

Results

❑Within three months, weekly reports by the site of services and clinician were able to be produced by the second business day following the end of each week, and a daily flash report on labor for each site of service.

❑The organization realized enhanced information quality, timeliness, and availability, which drove a 10% increase in Gross Margin on $48m in annualized revenue.

Situation

❑A regional MSO working with a large Practice with attached labs and pharmacies found itself in financial distress.

❑A busted sale process left the MSO in an out-of-court liquidation.

❑Medtronic stepped up to create a new MSO to take over as manager for the Practice.

❑The original MSO claimed (at the 11th hour) that the terms of their MSA entitled them to a large payment.

❑Medtronic was forced to consider loaning the Practice sufficient funds to cover the liability.

Actions

❑MLA assessed the Practice’s liability from several directions.

❑Regulatory questions around the potential for the Medtronic loan to be seen as a kickback to the physicians in the practice were analyzed.

❑Forensic accounting techniques were used to analyze the Practice’s financial performance over the life of the MSA.

Results

❑MLA resolved the value of the liability in one week and prevented a delay that might have killed the deal.

❑MLA (with the help of legal counsel) determined that Medtronic could safely negotiate with the Practice and close the deal.

❑Medtronic was able to pursue their strategy without undue risk.

Situation

❑Precious metals refinery reported unexpected inventory adjustment and collateral diminution

❑The operational cause of collateral loss was unknown

❑CRO appointed

Actions

❑CRO established operational and liquidity controls

❑Collateral loss root cause investigated, and asset recovery initiated

❑Filed Chapter 11 and pursued sale transaction

Results

❑Productive Assets were sold in a robust 363 process to a strategic player

❑Generated price equal to net tangible assets

Situation

❑A suddenly successful CEO of a public body armor company leads his organization into the Inferno

❑SEC, IRS, and DOJ investigations lead to the imprisonment of the CEO and the appointment of a CRO

Actions

❑Established operational and financial control of the Company

❑Negotiated settlements between Company and SEC, IRS and DOJ

❑Negotiated DIP financing for Chapter 11 filing and subsequent 363 sale

Results

❑Successful 363 sale transaction to a competitor

❑Liquidation of residual estate and forfeited assets created a full recovery for unsecured creditors and a 15% recovery for equity

Situation

❑An independent production studio had become a neglected asset saddled with poor leadership

❑Lack of focus on client service and business profitability

❑The organization and facilities starved for investment and development

Actions

❑Assumed key leadership positions

❑Rebranded the studio and secured top-tier movie and television productions (Agents of S.H.I.E.L.D, Betas, Silicon Valley, James Franco Roast)

❑Invigorated client focus within the organization

❑Supported team members to be successful in their positions

❑Instituted operational and financial processes to focus accountability on P&L by operating division

❑Implemented dozens of client-focused physical and process improvements that created long-term relationships with productions

Results

❑The company returned to profitability within 12 months

❑Sale of business generated returns exceeding the brightest expectations of owners

❑The legacy of the studio and the pride of the team was reinvigorated

Situation

❑$100MM specialty pharmacy chain in distress due to serious fraud.

❑Business model operating on the ragged edge of the regulatory environment.

Actions

❑Assessed the overall business model using our specialized regulatory compliance team.

❑Discovered significant fraud committed by the company’s major creditors.

Results

❑Successfully negotiated a series of complex settlements with creditors.

Situation

❑Private equity controlled distressed media company

❑The private equity sponsor required an independent board member to oversee the restructuring

Actions

❑ MLA took over as an independent board member and oversaw the sale of several departments per the restructuring plan

Results

❑The company was able was able to pay off the senior lender in full

❑The board returned to full private equity control

Select Industry Experience

Healthcare

$350MM Lab, Pharmacy, and Hospital Operator
$200MM Helicopter Medevac Company
$20MM Physician-Owned Hospital
$15MM Pathology Group

Manufacturing

$1B Precious Metals Refining Business
ABCO Industries
Pace Industries
MD Helicopters

Supply Chain

$1B Trucking Company
$350MM Consumer Products Distributor
$220MM Value Added Cellular Distributor

Energy - Oil & Gas

$350MM Mid-Stream O&G Company
$50MM O&G Services Company

Financial Services

$150MM Overseas Remittance Company
Startup – Crypto Asset Technology Provider

Food & Beverage

$500MM Phosphate Fertilizer Producer
$140MM Protein Bar Producer
$80MM Snack Food Producer

Engineering & Construction

$330MM Electrical Infrastructure Producer
Tecta America

High Tech

$500MM Network Infrastructure Company
$125MM Cellular Infrastructure Company

Marketing

TMP Directional Marketing
Uniflex

Consumer Products

$1B Vertically Integrated Carpet and Flooring Company
$400MM Product Design and Brand Management Company
Focus Products Group

Media and Entertainment

Culver Studios
General Media
Todd Soundelux

Professional Services

$1.5B Staffing Company
$290MM Technology Services Firm