Outdoor Advertising

The Situation

  • Outdoor-advertising agency violated lender covenants prior to 2019 after multiple operational issues and the unsuccessful integration of add-on business
  • Reduced lead times led to increased cost to service customers, reduced duration of advertising campaigns, reduced profit in several growing business lines, and loss of a large customer contract due to execution issues
  • The company enacted price increases to maintain gross margin from prior years, and the lender was concerned the price increases and increased operational complexity would place achievement of the business plan at risk

Role(s)

  • Financial Advisor to the secured lender

The Work

  • Reviewed and provided insights regarding company’s operations
  • Assessed strategic and financial condition of company’s business lines
  • Reviewed overhead and costs structure
  • Assessed the company’s sales and marketing process
  • Reviewed P&L projection in the context of the capital structure to determine if the borrower’s debt load was sustainable
  • Worked with the borrower to generate risks and opportunities to the P&L and balance sheet in order to determine their impact on financial and loan-covenant performance
  • Provided ongoing advisory services to the lender in conjunction with resolution of the credit

The Results

  • Delivered assessment to the lender
  • Provided key components of the deliverable to the borrower
  • Shared insights with both parties that would help improve the company’s performance and enable the lender to monitor the company’s performance in the future​

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Overview

  • Media
  • Performance Improvement

Engagement Team