2nd Generation Financial Group 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 themseves in financial distress. Management needs to react quickly to 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. TIME IS CRITICAL! Let us take a look.
Company Turnarounds/Restructurings $10 – $100 million range
Out-of-Court Workouts and Settlements
Board Change Management
Contracts Review for Non-Legal Professionals Webinars
Acquisition and M&A
Bank, PE, VC portfolio companies
Strategic board to enhance oversight and corporate governance.
- Revenue: $10m- $100 million range
- Equity/Debt: $5 – $25 million
- Management Buyouts
- Acquisition or Growth Refinancing
- Business Services
- Software/Tech Services
- Distribution and Logistics
- Healthcare Services
- Industrial and Niche Manufacturing
Big Problems with EBITDA
EBITDA based investments, lending and 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 .
Review troubled commercial bank portfolios, PE and VC investments, community bank and credit union portfolio’s in an unbiased manner.
Implement strategies for maximizing recoveries and minimizing losses for manufacturers, wholesalers, service companies, law firms, tech and software companies, universities colleges, community colleges, cities and counties.
Review contracts, negotiate out-of-court settlements with lenders and investors with new capital structures.
Coordinate and manage legal counsel. Review legal fees. Work with external professionals.
Prepare restructuring and financial plan, amendments and waivers.
Developing strategic relationships and source new investment opportunities for distressed situations.