2nd Generation Financial Group’s clients are private/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!

Services


  • 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                                                                              2nd Generation Financial Group                                                                        4747 Research Forest Dr., Suite 180                                                                  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 .