Industries

Healthcare Industry Management and Restructuring

What are the major disruptive changes in healthcare today? The most significant disruptions are rapid technological advancements, especially in artificial intelligence (AI) and automation, rising costs, greater demand for medical supplies, big mergers, legal changes, and lingering pandemic costs in patient care, testing, and vaccine administration.

Various issues can arise if you have a financial stake in a healthcare organization, whether as an owner, executive, director, shareholder, or lender. If that occurs, you may seek an outside professional with industry expertise. Advisors must be able to diagnose and execute financial restructuring for healthcare companies in volatile markets and engage in lengthy restructuring negotiations.

What are the major recent financial changes in the healthcare system? In recent years, the healthcare industry has battled workforce shortage, higher wages, and increased supply costs. There have also been reimbursement gaps, inflation concerns, a growing administration burden, and a decline in investment.

SierraConstellation Partners’ healthcare team knows the industry and has helped many businesses in this sector to navigate financial difficulties and challenging transitions.

Healthcare Industry Interim Management

In times of a leadership crisis, which may arise due to an executive leaving the organization, industry headwinds, liquidity challenges, or a merger or acquisition, SierraConstellation Partners (SCP) can step in temporarily to lead the company through uncharted waters. Our lean deal teams work closely with management to guide the daily business operations and provide continuity of leadership. Through our interim CEO, COO, CFO, CRO, and general managerial services, we offer a hands-on management style and operational mindset.

We specialize in small, integrated, hands-on teams that can make fast, strategic decisions for healthcare companies. We’ve smoothly navigated many problems faced by hospitals, medical facilities, medical equipment manufacturers, and others in this sector, from missed loan payments and bankruptcy declarations to mergers and lawsuits.

Healthcare Industry Financial Restructuring

Some signs that a healthcare organization needs financial restructuring services include missed covenants, concerns about Directors & Officer’s Liabilities (D&Os) claims, a bankruptcy filing, a lawsuit, or a default letter from a bank. The SCP healthcare team has handled these situations many times. We provide tailored end-to-end solutions based on the organization’s needs. We do deep analysis and can advise a board of directors on potential restructuring scenarios that may include a bankruptcy process or liquidation strategy.

When a company engages SCP as a Chief Restructuring Officer (CRO), we evaluate the situation, make proposals, create a weekly cash flow forecast, and communicate with the company’s board and other stakeholders. We can negotiate financing for adequate liquidity management before a Chapter 11 filing and eventual sale.

What is debt restructuring? This process enables a business experiencing financial distress and cash flow challenges to renegotiate delinquent debts to improve its liquidity and continue operating. In debt reorganization, SCP works closely with lenders to put a forbearance agreement in place so the company can reduce or delay its loan payments.

Healthcare Industry Turnaround Management

While a company undertakes financial restructuring when it has become insolvent, turnaround management occurs pre-insolvency. Typically, revenue has dropped, and the EBITDA is lower than anticipated, which indicates a loss of profitability. This decline in profitability could be attributed to a healthcare business not promptly paying its bills due to low cash flow, or possibly the sudden departure of its finance manager.

Our healthcare industry experts dive deeply into the organization’s operations and finances to identify the problem. Unlike a growth strategy for long-term profitability, turnaround for healthcare is, as it sounds, a bold strategy to deal with an emergency in the short term and quickly improve liquidity and profitability in a challenging market. SCP manages the cash flow to maintain liquidity, re-establishes communication between the business and its stakeholders, and proposes and reviews reorganization plans. We also determine the company’s and its assets’ valuation and examine current financial reporting.

Healthcare Industry Performance Improvement

Is a healthcare organization that you have a financial interest in underperforming? Tell-tale signs of trouble include cash flow problems, a decline in gross sales revenues, a loss of income due to inefficiencies, or higher operating costs.

SCP will assess and analyze current processes, systems, and organizational culture to determine what needs to be improved. We deliver actionable insights using advanced analytics so businesses can make strategic decisions. We focus on streamlining processes and making improvements that enhance operational efficiency and increase productivity while reducing costs. By doing this, we unlock a company’s hidden potential.

Our performance improvement services has already helped numerous businesses in the healthcare industry to achieve long-term growth.

Healthcare Industry Talent & Culture

A healthcare company’s success depends on its people and its vision. SCP supports and guides the human resources department at times of uncertainty to ensure that the team and company culture remains strong. Whether providing professional coaching, advising on employee retention, assisting in reductions in force, assessing organizational design and development, or facilitating smooth leadership transitions, SCP has deep experience building robust healthcare teams.

Our services include organizational development, post-acquisition integrations, strategic workforce planning and talent acquisition, risk management, and local, state, and federal HR compliance.

SCP Looks After the Financial Health of Healthcare Organizations

Turnaround strategies and financial restructuring for healthcare require deep industry expertise and financial savvy. SCP’s team of former C-Suite executives, investment bankers, and private equity investors have the necessary real-world knowledge and a hands-on approach to deliver effective financial solutions for our clients in the healthcare sector.

Contact us today and see why numerous other medical companies have already sought our assistance.

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Case Studies

Healthcare Industry Team Members

Roger Gorog

Senior Director

Timothy Bossidy

Managing Director

Philip Kaestle

Managing Director

Bob Riiska

Managing Director

Carl Moore

Managing Director

Kevin Santos

Director

John Halloran

Senior Director

Ben Smith

Senior Director

Curt Kroll

Partner

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Roger Gorog

Senior Director

Los Angeles, CA

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Industry Expertise

Roger Gorog, a Senior Director at SierraConstellation Partners, provides operational and financial advisory services to underperforming companies and companies in transition. His experience includes in- and out-of-court restructurings, business cost rationalizations, operational turnarounds, interim management, and transaction advisory services. Roger has experience across a variety of industries including, Aerospace & Defense, Business Services, Construction, Consumer Products & Retail, Energy, Financial Services, Food & Agriculture, Healthcare, Manufacturing, Real Estate, and Transportation & Logistics.

Before joining SCP, Roger was a Director at Alvarez & Marsal in their Healthcare Group where he worked on several large bankruptcy cases and numerous out of court restructurings. Prior to A&M, Roger worked in public accounting at Deloitte & Touche where he worked on financial statement audits of various corporations, both public and private.

Roger received his bachelor’s degree in economics and accounting from Claremont McKenna College and his Master of Business Administration (MBA) from The Peter Drucker School of Management at Claremont Graduate University. He is licensed as a Certified Public Accountant (CPA, inactive) and a Certified Insolvency & Restructuring Advisor (CIRA). He is an active member of the Association of Insolvency & Restructuring Advisors (AIRA) and the American Institute of CPAs (AICPA).

  • Interim CFO to a food manufacturer facing serious operational issues after losing its largest customer. He successfully reduced operating expenses and cash burn while negotiating with major vendors and the Company’s lender to extend their runway.
  • Officer for a leading cancer research institute where he was responsible for all finance and accounting related activities during a Ch. 11 bankruptcy and associated sale.
  • Financial advisor to large retail chain facing serious liquidity and liability issues. Communicated with all constituents, negotiated landlord concessions, and managed cash while we prepared for bankruptcy filing and associated liquidation sales.
  • Served as a financial advisor to a national ambulance company through a prepacked Chapter 11 bankruptcy that reduced balance sheet obligations by $350 million.
  • Financial advisor to an oil and gas E&P company where we successfully sold assets to strategic buyers, providing needed liquidity to maintain go-forward operations and successfully repay lenders and creditors.
  • Lead a due diligence assessment of a target company for a private equity firm that led to a successful transaction of medical information services provider. After the acquisition, he was further retained to assist in developing the integration plan, including development of various strategic initiatives to improve overall financial performance.

Awards

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Timothy Bossidy

Managing Director

Miami, FL

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Industry Expertise

Tim Bossidy is a Managing Director at SierraConstellation Partners with a significant track record of financial and operational consulting services to companies in transition. His advisory experience extends across turnaround management, mergers and acquisitions, capital raising and conducting financial modeling and forecasting across a variety of industries including: cannabis, consumer/retail, agriculture, media/entertainment, oil and gas, healthcare tech and healthcare services.

Prior to joining SCP, Tim worked as an investment banker at Goldman Sachs. There he focused on mergers and acquisitions, alongside initial public offerings, other equity transactions and debt financing. Prior to Goldman Sachs, Tim worked as a credit analyst at The Travelers Companies, where he covered high yield and investment grade bonds across the oil and gas and municipal sectors.

In 2020, Tim received the M&A Advisor’s Emerging Leader Award, which recognizes leading M&A, financial and turnaround professionals who have reached a significant level of success while still under the age of 40.

Tim holds a bachelor’s degree in economics and English from the University of Notre Dame and an MBA from Kellogg School of Management. He is originally from Connecticut and currently splits time between Los Angeles and Miami.

  • Interim management, advisory and financial modeling services to a cannabis company to organize and re-build finance and accounting departments, forecast cash flows for retail and cultivation entities, implement financial controls and prepare company for a capital raise.
  • Financial advisory to a cannabis company to implement cash management tools, oversee significant cost improvements, improve working capital and borrowing base management and repair lender relationship through improved forecasting.
  • Interim CFO role as part of CRO team for $500mm+ discount retail chain with international supply chain. Constructed operating model and turnaround plan to spearhead successful 363 sale of 85 stores out of bankruptcy. Led finance department, including cash management, in addition to daily operations across departments and over 5,000 employees to ensure maximum stakeholder recovery.
  • Interim CFO role for $40mm+ women’s fashion company. Oversaw restructuring, lender negotiations and Company-wide cost-cutting efforts to drive Company from significant losses towards profitability. Also led process for PO financing and additional rescue financing to give Company operational runway through a sales process. Implemented forecasting model and improved budgeting and financial controls to repair lender relationship and guide Company and lender through over-advance situation. Helped hire full-time CFO to lead Company upon SCP exit.
  • Advisor to a healthcare services company where executed a successful sale to a financial sponsor. Worked with company management to structure a deal to work around potential overhanging liabilities and identify synergies across potential buyers. Led diligence and valuation efforts ahead of transaction close.
  • Advisor to a retail company in financing and executing a management-led take private transaction. Led diligence and financial modeling efforts.
  • Informal advisor to several start-ups and lenders within cannabis landscape.

Awards

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Philip Kaestle

Managing Director

Seattle, WA

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Industry Expertise

Philip Kaestle is a Managing Director at SierraConstellation Partners, where he provides financial and operational advisory services to companies in transition. He has experience with balance sheet restructurings, interim executive management, operational turnarounds, identifying strategic opportunities, debt and equity capital raising, mergers and acquisitions, financial modeling and forecasting. Philip has worked in a variety of industries, including aerospace, apparel, automotive, distribution, entertainment, food and beverage, healthcare, industrial services, manufacturing, marketing, media, real estate, restaurants, retail and software.

Philip has served in a variety of senior-level positions including Chief Restructuring Officer, Financial Advisor, Investment Banker, Interim Chief Financial Officer, Interim President and Liquidating Trustee to numerous middle-market companies and is particularly skilled at assisting clients through challenging situations.

Prior to joining SCP, Philip was an associate vice president in OneWest Bank’s Media and Entertainment Finance Group where he was responsible for structuring, underwriting and executing new senior debt transactions and recapitalizations for media and entertainment companies. He was also a senior financial analyst in OneWest Bank’s Commercial Real Estate Group, responsible for managing and liquidating non-performing real estate assets.

Before joining OneWest Bank, Philip was an associate at Arch Bay Capital, a Southern California-based real estate investment fund. He started his career as an investment banking analyst with Imperial Capital, LLC in Los Angeles.

In 2020, Philip received the M&A Advisor’s Emerging Leader Award, which recognizes leading M&A, financial and turnaround professionals who have reached a significant level of success while still under the age of 40. In 2022, Philip was named to the Turnaround Management Association Northwest Chapter Board of Directors.

Philip holds a Bachelor’s degree in Financial Economics from Claremont McKenna College and is one of the co-leaders of the Claremont McKenna College Seattle Alumni Chapter.

  • As Chief Restructuring Officer for a producer and processor of dried fruits, efforts led to significantly improved liquidity and profitability, the sale of non-strategic real estate to reduce leverage, and a competitive refinancing process that resulted in full repayment to the senior lender despite ongoing litigation between the company and that lender.
  • Liquidating Trustee and Chief Restructuring Officer to a distributor of alcoholic and non-alcoholic beverages where he raised senior debt through a refinancing of the company's credit facility, then sold the assets of the company through a competitive process and completed the wind down despite ongoing litigation between the two shareholders.
  • Interim President and Chief Financial Officer to a dental laboratory manufacturing company where he rebuilt management and finance teams and significantly reduced operating expenses through a series of strategic initiatives despite a volatile operating environment.
  • Chief Restructuring Officer to a clinical-stage biopharmaceutical company which filed for Chapter 11 as a lawsuit with a former co-development partner was coming to a head. SCP led a settlement negotiation to resolve the litigation and completed an orderly wind down of the business, which resulted in full repayment to the pre- and post-petition lenders.
  • Chief Restructuring Officer and Interim Chief Financial Officer to an ethnic grocery store chain. Key responsibilities included cost reductions, vendor relations and cash management. He implemented a $12 million restructuring within a three-month timeframe which stabilized the business and allowed for a sale and subsequent recapitalization.

Media

Awards

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Bob Riiska

Managing Director

Los Angeles, CA

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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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Carl Moore

Managing Director

Dallas, TX

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Industry Expertise

Carl Moore, Managing Director and Head of the Texas region at SierraConstellation Partners, has over 20 years of experience in distressed investing, private equity portfolio management, and the provision of advisory services to underperforming companies and companies in transition.

Prior to joining SCP, Carl had a 15-year career in the private equity, distressed investment and restructuring groups at Highland Capital Management in Dallas. Most recently, Carl served as the Co-Head of Highland’s Private Equity group managing a portfolio of 7 industrial and healthcare companies with a collective enterprise value of $700M. During and after the financial crisis, Carl co-managed a team of legal and investment professionals that led credit restructuring, amendment and related negotiations for the firm’s $25B+ leveraged loan and high-yield bond portfolio.

Prior to joining Highland, Carl practiced law as an associate with the law firms Brobeck, Phleger and Harrison and Looper, Reed & McGraw with a focus on financing and M&A transactions.

Carl graduated from the University of Texas at Austin with a BA in the Plan II Honors Program and a BBA in Finance, and then received a JD from the University of Houston Law Center. He is a member of the State Bar of Texas, and was licensed as a Certified Public Accountant (currently inactive).

  • Served as Financial Advisor to Novan, Inc., a North Carolina-based publicly traded pharmaceutical company. Oversaw an extensive sale process, bankruptcy filing, and ultimate sale to a strategic buyer.
  • Served as Financial Advisor to Jenny Craig, a California-based health and wellness Company. Oversaw an extensive sale process and ultimate winddown of the Company.
  • Served on a SCP team that was the CRO for a Salt Lake City-based, publicly traded multi-level marketing company. In addition to customary bankruptcy-related matters, served as interim management following the departure of the Company’s Chief Financial Officer, oversaw a sale process that took the Company private and maintained its operations, and addressed issues with the SEC and DOJ regarding the Company’s foreign operations.
  • Served as CRO of GDC Technics, a Fort Worth aerospace company focused on complex interior modifications and connectivity solutions for wide-body aircraft. SCP helped the client navigate a contentious bankruptcy process during which it completed an expedited transition into two new lines of business, settled a major lawsuit with a former contract counterparty, and sourced exit financing from a sponsor-backed customer that supported its post-emergence business plan.
  • Served as Interim Management for a Dallas-based distributor of fuel and lubricants. The client faced significant pressure from fluctuating commodity prices, customer concentration in oilfield service clients, and a thinly-staffed central management team. SCP improved reporting and internal controls, led communications and negotiations with the client’s main vendor and asset-based lender, and assisted the sourcing and onboarding of a permanent CFO.
  • Served on a SCP team that was the CRO for a Silicon Valley-based digital medicine company. In addition to customary bankruptcy-related matters, oversaw an extensive IP sale and technology transfer process to a former strategic partner.
  • Served as Chairman of the Board of a major chauffeured transportation portfolio company. Took an operational role in efforts related to the transition from an independent operator to employee business model and related litigation in several jurisdictions, as well as a comprehensive strategic and SG&A overhaul resulting in significant EBITDA improvement.

Awards

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Kevin Santos

Director

San Francisco, CA

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Industry Expertise

Kevin Santos, a Director at SierraConstellation Partners, provides financial and operational advisory services to underperforming companies and companies undergoing transition. His over ten years’ experience includes in- and out-of-court restructurings, operational turnarounds, transaction advisory services, and conducting financial modeling and forecasting.

Kevin has experience in a variety of industry verticals, including construction, consumer retail, business services, distribution, food and beverage, industrials and manufacturing, media and entertainment, pharmaceuticals, and technology.

Prior to joining SCP, Kevin co-founded a finance and accounting solutions firm where he focused on building offshore full-service accounting teams that supported US-based companies. He was also a Senior Financial Analyst at a private roofing & solar construction firm where he supported restructuring efforts, developed and maintained financial models, and led an ERP implementation. Kevin started his career as a Financial Analyst at a public global media entertainment company, where he managed financial reporting of new and existing film, television, and online media production and distribution products.

In 2021, Kevin 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.

Kevin received his Bachelor of Science degree from the University of California, San Diego, where he majored in Management Science. He also successfully completed ACG’s Middle-Market Certification program. Kevin grew up in the Philippines and currently lives in the San Francisco Bay Area with his wife and dog.

  • Interim Chief Financial Officer to a producer and processor of dried fruits where he supported the Chief Restructuring Officer significantly improve liquidity and profitability, sold non-strategic real estate to reduce leverage, and conducted a competitive refinancing process which resulted in full repayment to the senior lender despite ongoing litigation between the company and the same lender.
  • Chief Restructuring Officer Support to a wholesale distributor of beer, wine, spirits, and non-alcoholic beverages where he assisted the CRO in raising senior debt through a refinancing of the company’s credit facility, then sold the assets of the company to one of the world’s largest brewing companies in a competitive process. He also assisted in maintaining the 13-week cash flow model, conducted extensive inventory analyses, and supported transaction diligence.
  • Financial Advisor Support for a consumer products company where he developed the 13-week cash flow model, supported a Series F equity raise along with a refinancing of an ABL facility.
  • Chief Restructuring Officer Support to a publicly traded clinical-stage biopharmaceutical company which filed for Chapter 11 bankruptcy. Supported the SCP team in settlement negotiations, created and maintained the 13-week cash flow model, and is in the process of effectuating an orderly wind down of the business, which has since resulted in full repayment to pre- and post-petition lenders.
  • Chief Restructuring Officer Support for Wave Computing, Inc. in their Chapter 11 reorganization. Responsibilities include maintaining 13-week cash flow, financial model projections, case management, and overall bankruptcy support.
  • Chief Restructuring Officer Support for a business services company in an accelerated private sale process. He developed and maintained the 13-week cash flow model, and supported the sale process including transaction diligence.
  • Financial Advisor Support for a medical device manufacturer that effectuated an Article IX foreclosure to the senior secured lender. Responsibilities include creating and maintaining the 13-week cash flow model, creating forecast models, and transition services.
  • Financial Advisor Support of a data center and fiber-to-the-home outsourced service provider.

Awards

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John Halloran

Senior Director

New York, NY

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Industry Expertise

John Halloran, a Senior Director at SierraConstellation Partners, provides interim management and operational and financial advisory services to underperforming companies and companies in transition. He leverages a growing track record at SCP and prior experience as a management consultant and private equity investor to help middle-market companies navigate through difficult business challenges. His experience includes exposure to various industries, such as pharmaceutical/biotechnology developers, consumer-facing brands, retailers, and distributors, media & entertainment providers, and information technology services and platforms.

John’s recent work at SCP has been recognized by industry awards, including:

  • In 2023, John was recognized by the Global M&A Network as an Americas “Rising Star Dealmaker,” which recognizes outstanding young dealmakers from the North and South American private equity, growth investing, lending, M&A and restructuring communities for their achievements in the space.
  • In 2023, John won the M&A Advisor’s Emerging Leader Award, which recognizes leading M&A, financial and turnaround professionals who have reached a significant level of success while still under the age of 40.
  • In 2023, John was recognized with colleagues by the Global M&A Network’s 15th Annual Turnaround Atlas Awards for the SCP team’s leadership of NewAge, Inc. in the category of Chapter 11 Restructuring of the Year (sm).

John has completed relevant professional education including the Chartered Financial Analyst (CFA) and Certified Insolvency & Restructuring Advisor (CIRA) designations.

Prior to joining SCP, John was an investor with Omaha Beach Capital. There, he supported management of private equity investment vehicles, with a focus on underwriting lower- and middle- market transactions. He began his career as a management consultant with Booz Allen Hamilton’s Strategic Innovation Group.

John holds a B.S. and M.S. degree in Political Science from the Massachusetts Institute of Technology (MIT). He is an alumnus of Chaminade High School in Long Island, New York.

  • Financial Advisor and Deputy Chief Restructuring Officer to a leading middle market sleep products brand. As a Financial Advisor, spearheaded vendor communications and supervised cash flow modeling and scenario analyses during period of financial distress. As Deputy Chief Restructuring Officer, coordinated the transaction process for a comprehensive recapitalization and exercised day-to-day oversight over cash management. To achieve an out of court transaction, engaged in extensive negotiations with creditors successfully delivering material AP reductions and lease terminations. The transaction resulted in the transfer of the business to the company's second lien lender and key supplier, and entirely deleveraged the company's balance sheet.
  • Interim Chief Financial Officer to one of the largest frozen shrimp distributors in the United States. Implemented credible process for projection of financial statements, 13-week cash flow forecasting, and borrowing base collateral. Enhanced communication with the company's senior lender to achieve forbearance agreements and loan amendments, thereby preserving the company's ABL loan facility and ensuring liquidity to operate. Collaborated with key company stakeholders to drive improved profitability and working capital management to enhance cash flow and allow additional opportunity for recovery in market conditions. During the initial 12 months' tenure, the company experienced a $28.5 million improvement in LTM Adj. EBITDA performance from $(10.3) million to $18.2 million.
  • Financial Advisor and Deputy Chief Restructuring Officer to a commercial-stage developer of branded OTC pharmaceutical products. As a Financial Advisor, analyzed cash flow assumptions, assisted the board in evaluating strategic alternatives, and conducted out of court negotiations regarding the settlement of liabilities. As Deputy Chief Restructuring Officer, facilitated negotiations to secure a stalking horse bidder, completed a sale of the company's assets through a 363 sale, and coordinated the Chapter 11 case requirements in Delaware.
  • Financial Advisor and Chief Restructuring Officer Support for a national dance events producer. Completed a review of company liquidity and business plan and assisted in negotiating a capital infusion from the senior lender to bridge the company to a sale transaction after events of default. Managed the company's cash flow and implemented cash controls on behalf of CRO and Board during the sale. The company was successfully sold to a private equity buyer in an out-of-court transaction.
  • Chief Restructuring Officer Support for the restructuring and sale of a global, publicly traded multi-level marketer of health and wellness products. Instrumental in ensuring that the company could prepare for and meet bankruptcy case requirements despite the limited budget and timeline. Key contributor on the SCP project team in their coordination of the company's finance function during the Chapter 11 proceedings in Delaware despite significant management turnover.
  • Interim CEO Support to a diversified IT services and solutions provider based in Canada and US. Assisted the CEO in overseeing company operations and communications with lenders regarding the company's capital needs in connection with a potential restructuring transaction. Oversaw the cash flow forecasting and reporting process for two independent operating entities and presented regular updates on behalf of company to lender group.
  • Chief Restructuring Officer and Liquidating Trustee Support to a wholesale distributor of beer, wine, spirits, and non-alcoholic beverages where he facilitated extensive transaction diligence for its acquisition by one of the world’s largest brewing companies and assisted the Liquidating Trustee in managing the satisfaction of all company obligations during its wind down post-close.

Awards

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Ben Smith

Senior Director

Chicago, IL

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Industry Expertise

Ben Smith, a Senior Director out of Chicago at SierraConstellation Partners, has over 20 years of experience providing financial advisory, restructuring and turnaround, and operational improvement services to companies across the transformation spectrum from those significantly distressed, to those stressed in specific segments of finance/operations, to those with targeted performance improvement initiatives.

He has experience with complex restructurings (both in and out of court), operational improvement initiatives, financial planning and analysis, budgeting and forecasting, cash flow management and modeling, business plan development and strategy.

Ben has experience in a variety of industries, including: airlines; automotive; distribution; healthcare; industrial and manufacturing; restaurants; and transportation and logistics.

Prior to joining SCP, Mr. Smith was most recently a Senior Director at Huron leading and supporting turnaround, restructuring and performance improvement engagements for companies of varying sizes in multiple industries.

Mr. Smith holds a bachelor’s degree in Government from Cornell University and earned his MBA from the University of Florida. He is also a Certified Insolvency and Restructuring Advisor (CIRA) and Certified Turnaround Professional (CTP).

  • Served as a financial advisor to a $300 million transportation and logistics company during their multi-year financial and operational restructuring.
  • Served as a financial advisor providing due diligence services for a merger between two regional trucking companies.
  • Served as a financial advisor for a $200 million distributor during its asset divesture and reorganization process.
  • Served as a financial advisor to a $100 million manufacturer during their winddown and eventual sale of remaining assets.
  • Served as financial advisor to several clients in the healthcare industry during their turnaround and restructuring processes.
  • Served as a financial advisor to a producer of storage systems from their pre-bankruptcy planning to their 363 sale.
  • Served as a financial advisor for a CBD producer from their pre-bankruptcy planning through their in-court restructuring.
  • Served as financial advisor to an airline during their bankruptcy process supporting sales of their main line operations, commuter assets and loyalty program.

Awards

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Curt Kroll

Partner

St Louis, MO

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Industry Expertise

Curt Kroll, a Partner at SierraConstellation Partners, provides interim management and operational and financial advisory services to underperforming companies and companies in transition. His experience includes challenging CRO roles, interim management, refinancings, distressed acquisitions and in- and out-of court restructurings. Mr. Kroll has held roles in various industries including retail, industrial manufacturing, real estate, financial services, and healthcare.

Prior to joining SCP, Mr. Kroll was the Chief Financial Officer and Chief Information Officer at Katy Industries, Inc., a publicly-traded manufacturer of consumer and industrial products with operations throughout the United States and Canada. While at Katy, he worked on numerous refinancings, acquisitions, operational integrations, and restructuring transactions. Prior to Katy, Mr. Kroll was a manager at Deloitte where we worked with middle-market and corporate clients across industries. Prior to Deloitte, he also spent 3 years in a regional public accounting firm working with middle-market companies.

In 2022, Curt won the M&A Advisor’s 16th Annual Turnaround Award (between $10mm and $100mm) for his work on the turnaround of francesca’s.

Mr. Kroll holds both a bachelor’s and master’s degree in accountancy from the University of Missouri. He is licensed as a Certified Public Accountant (CPA Inactive).

  • Served as CFO of a publicly traded-consumer product manufacturing company where he lead the company through a restructuring process that ultimately led to a return to investors through the sale of the business.
  • Served as a financial advisor to a $500 million outsourcing company through a sale process to a private equity group.
  • Served as a financial advisor for a $600 million oil and gas pipe manufacturer in a refinancing of its debt.
  • Served as a CRO to a $700 million national retail chain during its restructuring process.
  • Interim Chief Financial Officer to a national bridal retail company where he led the team post-bankruptcy to rebuild the Company’s brand image, employee morale and trust with key stakeholders including the debt holders.
  • Chief Restructuring Officer and Interim Chief Financial Officer to a national retail company where he executed a series of cost reductions and operational improvements to increase profitability despite a challenging operating environment. He also assisted with the sale of the company.
  • Was interim CFO to an 80-store candy retailer.
  • Served as a financial advisor to several clients within the healthcare industry on capital bond issuances raising over a billion dollars in capital.

Awards

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Dental Laboratory

Situation

  • A Los Angeles based, dental laboratory consortium experienced a rapid decline in liquidity driven by a mass exodus of employees causing a ~35% year-over-year revenue decline as well as significant functional gaps in production and amongst management ranks.
  • A failed refinancing process brought to light the magnitude of the operational issues and leadership deficiencies. SCP was retained to serve as the Interim President and Interim Chief Financial Officer, re-build the finance and management teams, drive supply chain improvement, right-size operating expenses through a series of strategic initiatives, re-capture lost sales and explore exit strategies to maximize recovery to all stakeholders.

SCP'S SOLUTION

  • Rebuilt the finance department from scratch and re-established best practices from the ground up.
  • Negotiated payment terms with over 100 suppliers that refused to ship product. Reduced A/R DSO by nearly two weeks.
  • Assumed all corporate and lab management responsibilities and drove significant operational improvements despite over 50% LTM turnover rates in two out of three facilities.
  • Prepared formal marketing materials and engaged an investment banker to broaden the pool of prospective buyers.
  • Sold the company as a going concern to a financial buyer through an Article 9 UCC foreclosure sale.

RESULTs

  • Despite the volatile operating environment and the ~35% decline in revenue, SCP led the business back to positive EBITDA prior to the sale.
  • SCP managed all functional areas of the business with a hands-on approach, by leading execution of operational initiatives, improving management engagement and leveraging economies of scale across all three labs.
  • Re-established confidence with all employees, customers, vendors, lenders and prospective buyers by maintaining open communication with all parties.
  • Drove 17% top line improvement from sales trough by re-capturing lost customers, promoting intra-oral scanning, targeted marketing campaigns, re-designed website landing page and continuing education seminars.
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Confidential Medical Device Company

Situation

  • This venture backed “unicorn” manufacturer of digital medical devices with nearly $1 Billion of invested capital had seized operations due to a dispute with a co-development partner.
    • The employees were on furlough at the time of SCP’s engagement, and the board was evaluating liquidating the Company.
    • SCP was hired to advise the board on the various strategic and restructuring alternatives available to the Company.

SCP'S SOLUTION

  • SCP quickly evaluated the time runway available based on the cash on hand.
  • With that runway established, the Company dual-tracked a Chapter 11 preparation and out-of-court restructuring strategy.
  • SCP quickly led an intense negotiation over the holiday period to bring in nearly $100 million in additional capital in 4 tranches to provide liquidity through a transaction.
  • SCP then analyzed a cost-reduction plan to extend the runway of the newfound cash and provide a long-term solution for the Company.

RESULTs

  • SCP successfully negotiated the financing and provided an 8-month runway to the Company and re-established good relations with the channel partner.
  • In addition, SCP worked with other partners to provide additional liquidity for the Company.
  • SCP then led the organizational restructuring of the Company in conjunction with the Chief Executive Officer based on the new model and reduced spend by nearly 60%.
  • The Company is positioned for long term sustainable growth and a sustainable revenue plan.
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Medical Group

Situation

  • This California based medical group saw rapid revenue growth with declining profitability.
  • The Company struggled to integrate across various acquired businesses and their IT/infrastructure spending programs did not match business opportunities.
  • They also struggled to implement a billing system with the ability to correctly track individual practitioner inputs.

SCP'S SOLUTION

  • SCP designed and implemented cash/working capital and treasury systems so that Group visibility was precise and accurate down to the individual SBU.
  • The plan separated teams to deal with day-to-day operations versus restructuring with reporting system to inform both teams.
  • SCP implemented Group-level business planning tools to implement a 3-year planning horizon.

RESULTs

  • As a result of SCP’s work, the Company managed cash to break-even while refinancing the balance sheet.
  • In addition, SCP helped develop a 3-year SBU business plan going forward.
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Biopharmaceutical Company

Situation

  • Clinical stage (pre-revenue), publicly traded biopharmaceutical company developing a transdermal microneedle drug delivery technology for use in migraine treatment applications.
  • The Company pursued a strategy to commercialize the technology in advance of receiving FDA approval, including staffing up its workforce, investing in commercial manufacturing equipment, and significant contractual obligations with Contract Manufacturing Organizations.
  • SCP was engaged to evaluate strategic alternatives as capital markets had become less supportive of the company given ongoing delays in obtaining FDA approval for its lead product candidate and a limited cash runway.
  • Shortly after SCP’s engagement, the FDA declined to consider the New Drug Application for the lead product candidate, casting significant doubt on the viability of the Company’s path forward for commercialization.

SCP'S SOLUTION

  • As an independent Financial Advisor, SCP was brought in to support the Board of Directors. Working closely with the executive leadership team and company counsel, SCP assisted the Board in evaluating the cash runway and potential strategic alternatives.
  • Based on SCP’s initial assessment, the Board decided to launch a sale process in advance of a potential restructuring process. SCP ran the sale process, including developing a teaser, confidential information memorandum, data room, and interested parties list. The sale process included robust outreach activities by the SCP team to a large variety of potential interested parties, including strategically relevant pharmaceutical companies and financial parties.
  • SCP guided the Company through a Chapter 11 process, including supporting preparation of the case and ongoing activities related to financial reporting, tracking cash flow, post-petition sale process activities, and preparation and participation in court hearings.

RESULTs

  • Successfully closed on the sale of substantially all the Company’s assets through a Bankruptcy Court approved sale.
  • Mitigated potential risks to Directors and Officers by advising on appropriate timing for the Chapter 11 filing, ensuring adequate D&O policy would be in place, facilitating engagement of appropriate restructuring counsel, and conducting a well documented strategic process to maximize value of the Company on behalf of all stakeholders.
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Chain of Skilled Nursing & Assisted Living Facilities

Situation

  • SCP was hired as Financial Advisor to a chain of 40+ privately held skilled nursing and assisted living facilities based on the West Coast.
  • The Company had burned through cash, maxed out their debt facilities and stretched payables to a near breaking point.
  • When SCP was first hired, the Company was close to a freefall bankruptcy filing because of liquidity issues. 

SCP'S SOLUTION

  • SCP created a detailed cash forecast that gave insight into the limited cash runway for the Company.
  • SCP implemented overhead reductions at the management Company and negotiated payment plans with major vendors.
  • SCP performed a 4-wall analysis on all of the facilities and identified 6 facilities for divestiture based on unfavorable leases or underperforming operations.
  • SCP communicated with the current lender to maintain borrowing capacity and ensure the Company had adequate liquidity to achieve the plan.

RESULTs

  • Reducing expenses and managing payables, extending the Company’s cash runway enough to run a competitive sales process for the divested facilities.
  • The sale of these facilities extinguished operating losses, generated liquidity from the sale, and further alleviated strain on the Company’s revolving credit facility.
  • The largest vendors agreed to payment plans and converted part of their past due balances to longer-term notes.
  • The Company continues to operate and maintain a high quality of care for its’ nearly 4,000 residents.