Tuesday, June 16, 2009

FamCo Advisory Services - Overview

FamCo Advisory Services

Interim Turnaround Managers, Business Workouts, Restructurings

“Solutions for Corporate Renewal” sm


FamCo has participated in over 150 corporate debt restructurings.

Now, FamCo Advisory provides one-stop service whose experience you can depend on for

· Interim, Turnaround or Crisis Managers

· Chief Restructuring Officers

· Debtor or Creditor Committee Advisement, both in and out of Chapter 11

· Capital raising and/or debt exchanges

· Board Membership and other Independent Counseling on Corporate Governance and Value-Creation

FamCo Advisory believes in moving fast. And we don’t just say that; we put our money where our mouth is by back-ending the largest part of our fees until we’ve earned them.

FamCo Advisory offers capital market experience, expertise with various types of investors and capital sources, as well as hands-on management with a friendly face. We believe in getting the job done without destroying your company’s culture, and then replacing ourselves as soon as possible. While we espouse a philosophy of being realistic, we’re tough negotiators. We have experience in most industries.

When is FamCo Advisory Services and FamCo’s Solutions for Corporate Renewalsm your perfect choice?

When you have either of these two very different types of companies, FamCo Advisory can best help you: When you have

1) A Good Company, but with too much Interest Expense and Debt; it has

· Positive EBITDA

· High Leverage but with no easy re-financing options

· A situation where Interest Expense or eventual Covenant Breach is likely to sink the company

· A management team who was able to grow, then able to cut back, but is now ready to grow again

· A stable market share, with clear future opportunities to take advantage of. If only….

OR, you have

2) An Underperforming Company that has too much Debt, too many Costs, and not enough Revenues despite the promises; one with

· Negative EBITDA

· Very high Leverage and no possibility of re-financing, with breaches of debt covenants imminent

· A management team unable to put costs in sync with revenues, one which has aggravated an already bad situation

· No possibility of surviving under both the present circumstances and the present leadership

· A declining market share, with declining operating and financial ratios, and thus a declining value


The depth and quickness of this recession reminds many of the 1930s. Certainly, nothing this severe has happened since the Great Bull Market began in 1982. And yet, unlike then, it is low interest rates and deflation that threatens businesses. In other words, you cannot just sell your way out of this one.

· Recovery won’t occur for years, perhaps a decade; so businesses & managers must right-size operations & balance sheets to revenues now, or risk bankruptcy and dissolution.

· Most companies will be unable to find additional credit on their own, and despite government efforts banks will write off over $1 trillion in loans.

Corporate credit spreads foretell default rates higher than any previous in our lifetimes. Bad news for employees and consumers. And bad news for managers who can’t adjust.

Issues your Company may be Facing, ones that FamCo Advisory can help you with:

· Flat or declining revenues

· Debt Covenant breaches

· Liquidity concerns

· Owners’ personal guarantees

· Lack of good plans/reliable forecasts

· Health of customers, vendors, or lenders

· Rising costs of raw material and/or good labor

· Poor quality of financial information and/or other data

· Current management’s inability to implement renewal

· Uncertainty about the business’s survival

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