2nd Generation Financial Group’s clients are private and public clients are private and public companies with revenues of $5mm to $100mm with financing requests in the $2.5mm to $50mm range.  We offer a full range of financial solutions and the expertise of commercial lenders and turnaround experts who are focused on their clients’ success. Reviews are conducted in an unbiased manner without the same vested interest that you have. 2G has decades of strong relationships with non-bank lenders and private investors. Due to tough economic times, middle-market companies find themselves in financial distress. Management needs to react quickly financial and business issues to improve survival chances. Our professionals know where to find corporate skeletons that are preventing you from realizing the full potential of your equity investment or commercial loan and we’re not afraid to ask hard questions. We have the ability to perform contract reviews to find differences between what companies are told, your financial analysts’ expectations and reality. We quickly identify the issues, design a turnaround or refinancing plan, and then roll up our sleeves and implement immediate short and long term actions to stop the hemorrhaging, rehabilitate operations and improve corporate performance, resulting in the increased profitability that will help to insure stability and long-term growth from the equity investment or commercial loan.

We assist private & distressed equity funds, private investors, VC, commercial loan portfolio companies back to health and profitability by taking a interim hands-on approach.  Quickly analyze and stabilize the situation, working with investors, commercial lenders, creditors, suppliers, customers, and work with CEO’s CFO’s and management to implement results-oriented tasks to assure the future success of the business. Whatever the circumstances, we bring about the best outcomes. Let us take a look!

Experienced Professionals (Click here)

Services

  • Interim CEO

  • Chief Restructuring Officer

  • Board Change Management

  • Crisis Management

  • Stealth Troubleshooting

  • Contracts Review for Non-Legal Professionals                      Webinars Available 

  • Out-of-Court Workouts

  • Business Analysis

  • Strategic Planning

  • Acquisition and M&A

  • Due Diligence

 

For a free, discreet and confidential (up to one-hour) review contact:                

Barry Cohen, Managing Partner                                                            4747Research Forest Dr., Suite180                                                                  The Woodlands, Texas 77381                                                                            713-805-4466                                                                              barry@2gfinancial.com

FINANCIAL ADVISORY

Access to sources of debt and equity capital from non-bank lenders and private investors around the country.

BOARD DEVELOPMENT

Strategic board to enhance oversight and corporate governance.

CRITERIA

Revenue  $5mm- $100mm

Equity/Debt  $5 – $25 million

Management Buyouts

Recapitalizations

Acquisition or Growth Refinancing

Business Services

Tech Services

Distribution and Logistics

Healthcare Services

Industrial and Niche Manufacturing

Problems with EBITDA – Time to get back to basics

EBITDA based acquisitions = fudged forecasts, unrealistic, expectations and restated financials.

Previous to the explosion in leveraged buy-out transactions (“LBOs”) in the eighties, EBITDA was a financial measurement rarely used either to measure debt service burden capacity or value. With the onset of the great bull marketing bonds and increased demand for higher yielding (but necessarily lower quality) fixed income securities, the use of EBITDA became increasingly more common. The principal promoters of EBITDA were the buyout firms and the Wall Street brokerage houses which both advised on the transactions as well as sold the high yield securities that supported the promising buy-out economics. Their advocacy simply was to inflate the debt service capacity of acquired firms and then its future valuation using a measure only speciously tied to actual cash flow. the measurement itself offers very limited insight into a given firm’s real costs to operate and as such deserves much scrutiny as a credible financial measurement.” Michael P. Durante .