In the state of nature profit is the measure of right. -Hobbes

Maximizing the value of a distressed company is challenging on many levels; it requires a thorough examination of the business, the market in which it participates, an insider’s understanding of the numbers and, most importantly, speed. ThreeCore’s multi-disciplined team of consultants can provide financial institutions the data they need to make timely decisions that maximize value. Our extensive domain experience in operations provides our clients with a unique resource that can identify liabilities not readily discerned from a balance sheet.

ThreeCore provides on-demand resources that can quickly gain an understanding of a company’s current condition and provide a recommended set of actions based on the client’s needs. Our team is hands on and is sensitive to issues involving employees, customers or other stakeholders associated with the business. While we help our clients develop strategies, we have the business experience to direct or assist in the implementation plan as well.

A typical financial workout involves the following:

Organizational Review

Our people are experienced and efficient. Our consultants review:

  • Business Strategy
  • Competitive Environment
  • Organizational Structure
  • Management Team
  • Key Employees
  • Sales and Marketing Organization
  • Product Develop Pipeline

Manufacturing Assessment

For manufacturing companies we provide detailed analysis of their current state of operation including:

  • Inventory Analysis
  • Supply Chain Design and Exposure
  • Procurement Practices
  • Production System and Efficiency
  • Quality Issues
  • Service Liability

Financial Analysis

ThreeCore’s operational expertise enables our clients to gain a better understanding of the risks that lie dormant in a company’s financial reports. While it may be very difficult for anybody to understand all the financial risks associated with a business, our consultants know the questions to ask and the places to look for issues. A typical financial review would include:

P&L

  • Multi-Year Trend Analysis
  • Industry Benchmarking Analysis
  • Variable Margin Analysis
  • Overhead Absorption Factors
  • Gross Margin Inflection Points
  • Labor Costs
  • SG&A Cost Issues
  • Profit Quality
  • Tax Issues

Balance Sheet

  • Multi-Year Trends Analysis
  • Industry Benchmarking Analysis
  • Receivables Quality
  • Issues with Payables
  • Inventory Movement and Risk Analysis
  • Warranty Claim History
  • Long and Short-Term Debt Constraints
  • Capitalization Table Impacts

Cash Flow

  • Short-Term Cash Flow Analysis
  • Forecasted 12-month Cash
  • Major Cash Related Risks and Mitigation Strategies