Industries

Construction Management and Restructuring

How do you build a profitable enterprise in the construction industry? There are many challenges that construction firms and utility companies can face, from liquidity concerns and disagreements internally and with lenders, to poor budgeting, inaccurate financial records, and employee turnover. In addition to these challenges, many unknowns exist, including economic conditions and supply chain issues. Staying ahead of new technology trends, being acutely tuned to homebuyer preferences, navigating regulatory issues, and handling workforce concerns are essential. Therefore, companies must create realistic and viable business plans with a strategic vision for long-term success.

SierraConstellation Partners helps construction and utility companies identify their unique operational and financial challenges and develop comprehensive, sustainable construction industry solutions. SCP has guided organizations through leadership transitions and financial restructuring during liquidity crises, M&A activities, and changes of ownership. Learn how we can help your company.

Construction Interim Management

For construction companies experiencing a downturn or leadership vacuum, an interim manager can get the business moving forward again. They develop strategies and spearhead marketing initiatives that target new customer segments. By recommending changes in operations or suggesting new product offerings, they can help the company capitalize on emerging industry trends. 

SCP’s seasoned professionals work hand in hand with companies to ensure that they stay competitive in a changing marketplace.

Construction Financial Restructuring

A company may need business restructuring when it’s experiencing financial distress or a structural change. It may be insufficient cash flow, unprofitability, or bankruptcy. Owners may have trouble getting a bank loan. What are the challenges for financial restructuring in the construction industry? There could be upfront costs for materials and labor and slow returns, cash flow problems, incorrect estimates, unexpected expenses, or a lack of project documentation. These are just a few issues that could put restructuring plans at risk. 

SCP understands the unique challenges and opportunities for construction companies. We can help you create and execute a comprehensive strategy to successfully restructure your business.

Construction Turnaround Management

Saving a business that is in trouble depends on a sound turnaround strategy. At SCP, our turnaround experts take a deep dive into your construction business to create a sustainable business plan. They’ll look at current and future construction projects, balance sheets and other financials, operations, staffing, debt and liabilities, outstanding customer invoices, and more. 

But we don’t stop there. Our professionals work alongside your team to help restructure and renew your business operations and improve your company’s financial health and profitability. We define and analyze the problems your company is facing, stabilize the situation, and create a strategic plan. We help you to outline your long-term goals and vision clearly. We then develop and implement an action plan, guiding your team through the entire process. Our team conducts regular reviews and adjusts strategies as needed for optimal success.

Construction Performance Improvement

To improve a construction business’s performance, you must identify and correct all issues that affect the quality of your products, the efficiency of your operations and workforce, and your company’s profitability. This involves every aspect of your organization, and bringing in a professional gives you the wide-angle view that you need to make important changes.

Our SCP performance improvement experts do this type of deep analysis for companies often, so they know what to look at and how to work within your organization to bring about lasting positive change. Improving performance helps construction businesses navigate challenging environments, whether it’s overdue customer payments, a slowdown of new construction projects, supply chain or supplier issues, low team morale, or macroeconomic uncertainty. The SCP team will look at areas that could be improved, whether it’s working with suppliers to lower material costs, finding new revenue streams to navigate through difficult economic conditions, or working with lenders to renegotiate payment terms.

Construction Talent & Culture

Our talent and culture professionals focus on the most important asset of your construction firm: your team. Hiring and retaining dedicated staff is especially a challenge in construction, and your business relies on your team pulling together. We create a strategic plan to attract the best people to your team, help guide your organization through leadership transitions, and execute smooth integrations during acquisitions and mergers. We provide compensation planning, strategic workforce planning, and in-depth data intelligence, and we’ll help your company stay in compliance while adhering to best practices throughout the hiring and onboarding process.

Frequently Asked Questions

How can I build a viable business plan for my construction company?

A construction company’s business plan includes an executive summary and company description, market analysis, operations plan, strategies for advertising and marketing, and financial projections. Tying all of this together into a successful presentation requires strategic thought and an expert hand. At SierraConstellation Partners, we have deep experience in creating sustainable business plans for construction companies.

If a project falls though, how can I recoup my financial losses?

A canceled construction project can mean a tremendous loss for a construction company, especially if you’ve already paid for materials and permitting. What can be done? It may be possible to salvage the project through negotiations with the client or a financier who has suddenly pulled out. You want a savvy professional to have those difficult conversations. Our team of professionals have acted as a liaison between companies, clients, and lenders, and can find solutions for the most challenging problems.

SCP Will Set Your Construction Company on a Path to Success

SierraConstellation Partners is an interim management and advisory firm with decades of experience. Our team of former CEOs, COOs, CFOs, private equity investors, and investment bankers have real-world experience and have helped construction businesses overcome seemingly impossible challenges to succeed. They take a hands-on approach and work within your organization to help guide your company toward greater efficiency and profitability. 

Get in touch with one of your construction financial advisors today to begin building a better future for your business.

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Case Studies

Construction Industry Team Members

Bob Riiska

Managing Director

Bill Partridge

Managing Director

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Bob Riiska

Managing Director

Los Angeles, CA

BiographyNotable AssignmentsMedia & Awards

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Industry Expertise

Robert O. Riiska, a Managing Director at SierraConstellation Partners, has over 25 years of turnaround and advisory experience, including serving in interim senior management capacities for clients and performing numerous value-added consulting assignments. Clients have included multigenerational family businesses, sponsor-backed roll-ups and large publicly traded corporations.

Mr. Riiska is a Certified Turnaround Professional (CTP), Certified Public Accountant (CPA) and Chartered Global Management Accountant (CGMA). He received a Bachelor of Science Degree in Economics from the Wharton School of the University of Pennsylvania, and an M.B.A. in Finance and Marketing from the University of Chicago Booth School of Business.

Mr. Riiska serves on the boards of several leading industry associations including the Executive Committee of the Turnaround Management Association’s Southern California Chapter, the Advisory Board of the American Bankruptcy Institute’s Bankruptcy Battleground West and as a Secured Finance Network member director.

In 2019, Mr. Riiska received the Turnaround Atlas Award for his work as Chief Restructuring Officer of LORAC Cosmetics prior to joining SCP in 2018.

Mr. Riiska’s recent engagements have been in diverse industries, including automotive dealerships, transportation, furniture manufacturing and retailers, apparel, mining, cryptocurrency lending, nonprofits, consumer products, restaurants and industrials.

  • Served as CRO of a gold mine located in the Southwest U.S., spearheading out-of-court restructuring efforts which led to a successful sale.
  • Served as financial advisor to a manufacturer and distributor of commercial office furniture, negotiating a forbearance agreement which would give the company sufficient operational runway to recover from the issues mainly caused by the pandemic.
  • As CRO of a prestige cosmetics company based in Los Angeles, oversaw all aspects of day-to-day operations, including directly interfacing with large national retailers and suppliers, and developing and executing liquidation strategies for excess inventory, while also coordinating successful sale efforts.
  • As financial advisor to a consumer packaging company, negotiated a new financing solution to provide liquidity to maintain core operations and pursue growth initiatives, while also achieving a successful sale of one of the divisions in an expedited timeframe.
  • As financial advisor to a $500 million long-haul trucking company, developed a successful turnaround plan and convinced the lenders to provide a significant structured loan overadvance to facilitate execution of the plan.
  • Served as financial advisor to a $300 million family-owned grocery wholesaler and developed a comprehensive turnaround plan to return the business to profitability.
  • Served as CRO of a $900 million publicly-traded staffing company with over 30,000 temporary employees. Successfully sold several business units after a massive tax fraud related to an affiliated company had been discovered.
  • Acted as Financial Advisor to one of the largest manufacturers of recreational vehicles while it operated in Chapter 11, leading to a successful asset sale.

Media

Awards

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Bill Partridge

Managing Director

San Francisco, CA

BiographyNotable AssignmentsMedia & Awards

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Industry Expertise

Bill Partridge, a Managing Director at SierraConstellation Partners, has over 25 years of corporate finance, restructuring and capital markets expertise, across multiple industries including technology, biotech, media, energy and construction. Since joining SCP, Bill has worked closely with management teams, boards of directors, and stakeholders through many complex situations, leading them to successful results.

Prior to SCP, Bill spent several years as an interim executive and turnaround consultant taking on many unique and challenging engagements for private companies throughout the U.S.

Bill’s experience also includes leadership roles in private equity, banking, and as management at several operating businesses including Suntech, where he worked on its successful restructuring. His private equity and banking experience includes JP Morgan Partners, Credit Suisse and ABN AMRO Bank.

Bill’s work has yielded positive outcomes and earned him several recent industry awards:

  • In 2022, Bill was recognized in Global M&A Network’s 9th annual list of Top 100 Restructuring Professionals.
  • In 2022, Bill won the 14th Annual Turnaround Atlas Awards under the category of Private Equity Acquisition Deal of the Year.
  • In 2021, Bill won the 15th Annual M&A Advisor Turnaround Award under the category of ‘Information Technology Deal of the Year’ for his work with Wave Computing.

Bill received a BBA in Finance from the Mendoza College of Business at the University of Notre Dame and an MBA from the Marshall School of Business at the University of Southern California.

  • Financial advisor to the board of Embark Technology, Inc, a publicly traded autonomous trucking software company sold to Applied Intuition.
  • Financial advisor to board and CEO team leader for IT services and solutions provider based in Canada and US.
  • Financial advisor to board of a data center and fiber to the home outsourced service provider.
  • Financial advisor to board and Trustee to Debtor in Chapter 11 of publicly traded bio-pharma company, Zosano Pharma Inc.
  • Financial advisor in sale of private equity backed healthcare AI driven SaaS provider JVION to health analytics company, Lightbeam.
  • Financial advisor to Weldmac, a steel fabrication company, in its successful sale to TriMas (NASDAQ: TRS).
  • CRO team leader for business services company, Metco, in accelerated private sale process.
  • CRO team leader for Wave Computing, Inc. Chapter 11 reorganization. Debtor is a Silicon Valley based fabless semiconductor and AI technology company that owns MIPS IP core technology. Successfully orchestrated a plan of reorganization that provided liquidity for new product growth, while satisfying allowed creditor claims.
  • As interim CFO at a private B-corporation, improved liquidity through refinancing and the securitization of $40 million capital lease financings funded by a consortium of family offices and non-bank lenders.
  • Served as interim CFO at renewable energy company during refinancing and entry into foreign market. Bill led the expansion of the finance and accounting departments and successfully structured and raised corporate capital and off-balance-sheet project financing.
  • Financial advisor to rebar fabrication and construction company.
  • Financial advisor to stakeholders in a discount grocery store chain.
  • Financial advisor to board of a data center and fiber to the home outsourced service provider.
  • Represented debtor in restructuring of $2 billion multinational manufacturing company with headquarters in China.
  • Prior member of general partnership managing $360 million portfolio of private equity investments in technology companies.

Awards

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Confidential Fiber Communications Installation Company

SITUATION

  • A typically $20-30M per year revenue company had a series of missteps as they attempted expansion into the middle and last mile fiber installation, accepting new contracts valued at over $100M in late 2021.
  • Company was a negative book balance when we arrived in July 2022, having just received $7.5M from existing equity investors in January 2022.
  • Company was not focused on near-term liquidity and management struggled with implementing cost controls, project budgeting, cost over-runs, and employee issues.
  • Equity had lost trust in interim CEO who did not accurately project cash flow and liquidity and did not address the gravity of the situation.

SCP'S SOLUTION

  • Opened communication lines amongst board and leadership to objectively present the dire situation.
  • Immediately controlled cash disbursement scrutiny in anticipation of a significant liquidity shortfall.
  • Presented all possible options:
    • Going concern: would require an immediate $5M from Equity to bridge to a sale
    • Chapter 11: would require an immediate $2-5M from Equity to fund a filing
    • General Assignment: reduces D&O exposure and provides immediate resolution to ballooning liabilities

RESULTs

  • Quick action, leadership and advice of SCP preserved value to stakeholders which maximized recovery.
  • Equity decided not to invest due to rampant employee insubordination issues, unfavorable potential working capital terms, and ongoing litigation.
  • Five weeks after SCP’s engagement, Company ceased operations and entered a General Assignment to recover as much value for stakeholders.
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Landscape Design, Installation & Maintenance Business

SITUATION

  • This Denver Colorado area landscape design, installation and maintenance business was founded in 1987 by a sole proprietor, who boot-strapped the business to a $71 million revenue business. The Company’s revenues came from primarily two business divisions: 70% from commercial and production landscape design and construction for new home communities and commercial business, and 30% from landscape maintenance services including mowing, leaf removal and snow removal.
  • Was purchased by a private equity sponsor in 2018. A bank provided debt for a dividend recapitalization in 2019. After a significantly dry winter season with lower than usual snow removal and inflation in labor rates and materials costs, the Company experienced meaningful declines in profits. This combined with massive employee and management turnover, left the Company with a liquidity shortfall. This was exacerbated by the antiquated record keeping, job tracking and billing processes employed by the Company. Become in default with its lender, who sought to find a way to reduce its exposure to the borrower.

SCP'S SOLUTION

  • SCP was retained as Chief Restructuring Officer by Metco.
  • Once engaged, working closely with the management team, SCP implemented improved FP&A reporting and processes including a budgeting tool, improved WIP reports, labor utilization and job costing that enabled execution of a strategy to stabilize the operations, retain key employees and customers and improve communication with vendors to ensure operations continued as normal.
  • SCP focused on reducing costs, improving reporting including job costing, allocations, billing processing times, labor utilization, budgeting and job estimating with KPIs that held employees accountable and focused on Company profit goals.
  • SCP, with its improvements to the operations, worked closely with an investment bank to support the sale of the Company an expedited two-month process.

RESULTs

  • Under SCP’s leadership, the company executed a successful sale to a private equity sponsor. SCP brought discipline, competence and attention to detail that the Company needed.
  • SCP accurately forecasted cash disbursements, and cash receipts.
  • SCP managed the production of accurate financial statements, compiled schedules and statements, retained key customers and ensured retention of key employees.
  • SCP was able to identify critical issues regarding prior contracts, jobs and WIP.
  • SCP, with the assistance of an investment bank, successfully sold Company resulting in a purchase price that satisfied the secure lender and transferred the liabilities to the new owner, who sought to inject more capital to improve systems and processes that could help return the company to profitability.
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Electrical Contractor

SITUATION

  • A $45 million electrical contractor was unprofitable and significant disagreements within ownership were hurting the business.
  • Management thought the Company had sufficient liquidity and time to return to profitability.
  • A detailed review of cash flow projections found numerous errors and the Company was likely to run out of cash within weeks.

SCP'S SOLUTION

  • SCP developed an operational restructuring plan that reduced costs, eliminated unprofitable jobs, and returned the company to viability.
  • Negotiated with the secured lender for additional funding.
  • Developed an offering memorandum to bring in permanent financing.

Results

  • SCP assisted in negotiating the sale of the Company to a NYSE company.
  • Ownership retained their jobs and thrived in the new entity.
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Building Materials Company

SITUATION

  • Facing significant liquidity constraints as a glut of aged inventory was about to become ineligible on the Company’s borrowing base certificate.
  • Aged inventory balances had crept up as a result of the COVID-19 pandemic, which impacted key customer operations and their ability to bring in product on schedule.
  • The Company was only three weeks away from a projected liquidity deficit and had been unsuccessful in negotiating a concession with its lender, U.S. Bank.

SCP'S SOLUTION

  • SCP developed a rolling 13-week cash flow forecast which provided clear visibility into short-term liquidity needs.
  • Included detailed working capital roll forwards tied to SKU-level shipping date schedules to accurately project liquidity and quickly illustrate potential loan structure amendment scenarios.
  • Reviewed and analyzed the Company’s financial projections, liquidity management tools, credit insurance policies, and related information.
  • Completed a division-level historical financial review with a comparison to forecast and year-over-year analysis.

RESULTs

  • SCP and management successfully negotiated an amendment with U.S. Bank to allow for temporary relief around aged inventory requirements.
  • The Company was able to capitalize on the surge in demand for building products and sold off a significant chunk of its aged inventory at premium prices.
  • Shamrock’s liquidity position has meaningfully improved since the end of its engagement with SCP, climbing steadily throughout 2020.
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Plumbing and Heating Company

SITUATION

  • This ~$50 million plumbing and heating contractor was experiencing severe liquidity issues, yet management thought that the Company was profitable.
  • The Company’s financial controls and records were not current and provided no guidance for action.

SCP'S SOLUTION

  • SCP evaluated the viability and financial position and found the Company was losing $2 million per year.
  • Many jobs were found to be unprofitable and administrative costs were out of control.

RESULTs

  • SCP negotiated with the secured lender and trade creditors for a moratorium and long-term restructuring of obligations.
  • Developed and implemented a turnaround plan that eliminated unprofitable customers and type of work.
  • Reduced administrative costs and improved financial and job cost accounting.
  • Obtained replacement financing and paid secured lender in full.