Boverman & Associates advises or provides interim management to operating companies, as well as directly to creditors or equity holders with regard to a given company or situation.
Services provided include:
Please see Case Studies for descriptions for a summary of situations in which Mr. Boverman has provided these services.
Companies or their stakeholders often desire an independent evaluation of a company or a situation to supplement or reevaluate current strategy and business practices. Our goal in an assessment is to bring objectivity and structure to the decision making process to improve outcomes for stakeholders.
Each assessment engagement is structured to meet the priorities at hand, while ensuring a comprehensive review is undertaken to uncover all significant issues and opportunities. The industry sectors in which the company is involved and the strengths and weakness of the company as a participant in its marketplace are closely examined. Opportunities for improvement in strategy, operations and financial position are evaluated. Critical issues and decisions are identified and evaluated and the objectives, rights and responsibilities of its stakeholders are identified and discussed.
Some assessments are limited to a short period of interaction with the company followed by delivery of observations and recommendations for implementation by the client. In other cases Mr. Boverman and his associates have been retained to implement recommendations as advisors or interim management.
Companies often have experienced and qualified executive management in place, but require additional advice and capacity to execute quickly during critical situations. For good reasons, companies recruit and retain executives with deep knowledge of the industry in which it operates, but these executives may not have the extensive experience with crisis management, restructurings, turnarounds and insolvency Boverman & Associates provides. In addition to his experience as an advisor, Mr. Boverman has served as executive management, director, investor and lender and this provides us with the ability to objectively understand the various perspectives among these key stakeholders to improve communication, decision making and outcomes.
Advisory roles are flexible depending on the needs of the client. Some advisory assignments are focused on a specific project or objective, such as a refinancing, business sale or acquisition, or evaluation of a specific business decision such as a significant capital expenditure or entry into new markets. Advisory roles have also included assistance in executing operational improvement opportunities in areas such as sales management, distribution, supply chain management, manufacturing efficiency or cost reductions in general. In many cases, advisory assignments are focused on financial management and can include assistance with cash forecasting, cash management, borrowing base preparation, budgeting, accounting, financial reporting, covenant compliance and other matters associated with the office of the client’s chief financial officer.
In certain cases, the parties involved require that the terms of an advisory assignment may include direct responsibilities similar to those of executive management, but also desire that incumbent executive management remain in place. In such cases the extent of responsibility is set forth in the engagement agreement and can be limited to certain areas or can be broad, such as when a Chief Restructuring Advisor is required.
In some situations there is a need for an addition or replacement of one or more executive managers. In such cases Mr. Boverman or one of his associates becomes Interim Chief Financial Officer, Interim Chief Executive Officer or Chief Restructuring Officer. Such interim roles allow clients to quickly put in place an executive qualified to manage the company who also has the crisis management, turnaround and insolvency experience.
Some interim management assignments are of relatively short duration, such as during a refinancing, a sale of the business or a portion thereof, or a liquidation. Other assignments are longer, such as those involving execution of an operational turnaround. Often we assist our client in recruitment of our replacement and provide initial transition guidance to the new executive.
Mr. Boverman has extensive experience in mergers, acquisitions and joint ventures as an investment banker, equity investor, CFO and restructuring & turnaround advisor. Services are offered to both “buy-side” and “sell-side” clients. In most situations the objective of a business combination assignment is to assist investors or operating management with the extensive amount of work and focus required to execute a proper purchase or sale, allowing them to be less consumed with associated matters and maintain focus on operations and results.
Services offered to companies and investors on the “buy-side” include assistance with comprehensive due diligence, strategic planning, financial modeling, financing and documentation. Services offered on the “sell side” include process management; preparation of pro-forma financial information, executive summaries, information memoranda, and due diligence materials for prospective buyers; evaluation of strategic fit and synergies; assistance with buyer presentations and interactions and assistance in evaluating and negotiating transaction terms and documentation.
Our extensive experience in mergers and acquisitions is often very helpful in thorough evaluation of alternatives available in a given circumstance and in helping stakeholders select the best the course of action, even where a merger or acquisition is not part of that action plan.
Risk of insolvency is often a crucial matter and Mr. Boverman has extensive experience in evaluating financial condition, including capital structure, liquidity and cash flow and other financial projections. Expectations for compliance with financial covenants and borrowing base requirements can also be critical. In cases where insolvency is apparent or expected, Mr. Boverman has the experience necessary to evaluate the situation and advise with regard to how the company should proceed.
In the majority the potential insolvency situations Mr. Boverman has been involved with, his analysis has led to a recommendation that a restructuring and turnaround of the underlying business had greater value to stakeholders than a liquidation of its assets. A thorough liquidation analysis is required to make this determination, including the decision path and timing. Such analysis is often critical in securing the support of lenders and other stakeholders for a restructuring and in negotiating the terms thereof. However, in some cases, the expected value and debt service capability of the business following a restructuring and turnaround is not considered to be high enough to justify the risk of success and the expected cost, or adequate capital cannot be obtained for such a course of action, and liquidation of assets may be determined to be the best course of action to maximize value. In such cases, objectively assisting the company and stakeholders in acknowledging this situation can dramatically improve overall outcome by commencing with liquidation in a timely and well planned manner.
In his turnaround and restructuring experience, Boverman has found that avoiding bankruptcy where possible is generally the preferred approach. Bankruptcy is, however, sometimes unavoidable, or can be the appropriate course of action for a given party under certain circumstances. Mr. Boverman has substantial experience with bankruptcies and can provide critical assistance in evaluating whether bankruptcy may be necessary and in preparation, filing and administration and in development and confirmation of a plan. This understanding of the bankruptcy process is also critical to developing and implementing plans to remain out of court and to negotiating with stakeholders for forbearance, consent, restructuring or other assistance that may be required.
Please see Case Examples for a summary of certain situations in which Mr. Boverman has provided these services.