M-Corporations

Situation

M-Corporations, Inc. (“M-Corp” or the “Company”), located in Westerville, Ohio, provides electrical, mechanical, industrial, structural and technology design, administration and overall consulting services to the construction industry.

As a result of mounting losses and an increasing debt burden, the Company’s lender mandated hiring a financial advisor to lead the restructuring efforts of the business.

Solution

Amherst Partners (“Amherst”) was retained by M-Corp as its Chief Restructuring Officer and charged with right-sizing the business and taking corrective measures to improve operating performance.

New billing and collections procedures were implemented and resulted in improved cash flow; non-performing overseas units were closed and unprofitable clients were shed.

Results

Within months of engaging Amherst, M-Corp reported a return to positive operating earnings.

On the heels of reporting improved results, the Company engaged Amherst to facilitate a sale of the business to the existing management team.

The sale and resulting capital structure improvements satisfied the requirements of the Company’s lender and restored financial stability.