Negotiating the Hidden Curves on the Road to Success
(Operations Consulting/Litigation Support) – An 80-year-old company run by third generation family members was beset by a series of problems during its sale. The cost of raw materials had soared, employee theft was suspected, and there were unresolved tax, environmental and union obligations. Janas consultants acted as financial advisors and as a temporary CFO, tightening financial and operating controls, and resolving the tax issues prior to the company being sold for 10 times EBITDA. The owners retained $2.3 million of environmental and union liabilities. Janas created compelling arguments that brought together relevant economic, financial and personal considerations, to create a persuasive analysis. The end result was a settlement of liabilities that resulted in net client savings of almost $1.9 million or 82% of the projected $2.3 million expense.