Turnaround Atlas Awards

Turnaround Atlas Awards Announced – LM+Co earns three, including Boutique Consulting Firm of the Year

May 21, 2019: Winners throughout the restructuring and M&A communities were honored at the 11th Annual Turnaround Atlas Awards Gala and ceremony celebration, hosted by the Global M&A Network, and held in New York. The independently governed awards recognize excellence in categories of transactions, outstanding firms, top U.S.A professionals and legendary leaders in law, investment banking, restructuring advisory and private equity.

“The Turnaround Atlas Awards validate excellence, tireless work of professionals and firms from the industry. Winners should take pride for effectuating successful restructurings, proving their creativity, expertise and differentiated talents” said Shanta Kumari, CEO and Global Group Editor at Global M&A Network.

Loughlin Management Partners received three awards.  The Firm won Outstanding Healthcare Services Restructuring of 2018 for the restructuring and refinancing of ProCure Proton Therapy Center.  

The LM+Co team implemented operational and financial strategies to grow patient volume, increase reimbursement per treatment, improve collections and mend relationships with the local physician group. These strategies helped the Center increase revenue and profitability. With the successful operational turnaround, LM+Co advised the Center on completing a $150 million tax-exempt bond and subordinated bond transaction. Proceeds of the financing were used to refinance debt and to buyout the Center’s former ownership group by the Public Finance Authority.  With access to longer

LM+Co Capital’s leadership as advisor to the debtor throughout the Xpress Global Systems restructuring and its acquisition by Aterian Investment Partners earned the Firm recognition for 2018 Logistics & Transportation Restructuring of the Year.

XGS is the leading specialized LTL provider of time-definite surface transportation, warehousing, distribution and related value-added services to the Floor Covering Industry. The Company operates 28 service centers across the United States and services more than 3,000 customers. XGS is the leading specialized LTL provider of time-definite surface transportation, warehousing, distribution and related value-added services to the Floor Covering Industry. The Company operates 28 service centers across the United States and services more than 3,000 customers.  The completion of this sale preserved hundreds of jobs, and established a solid platform to explore and launch additional growth initiatives.

XGS Chief Executive Officer Darrel Harris previously noted, “The LM+Co team was instrumental in managing the various complexities of this transaction. They provided strong support and expertise throughout the sale process.”

LM+Co was named USA Boutique Consulting Firm of the Year.

“The entire Loughlin Management team is proud of our colleagues who were honored for their fine work”, commented Jim Loughlin, founding partner and managing director. “We are very pleased that our Firm has been recognized once again for our success creating sustainable value for our clients.

About Loughlin Management Partners + Co
In Private Equity Value Creation, Turnaround + Restructuring and Corporate Finance, LM+Co has distinguished itself by focusing on identifying and implementing actionable solutions and delivering results that maximize enterprise value. LM+Co has a dedicated healthcare team that can assist companies to improve operations through revenue enhancement, cost reduction and working capital improvements.  The firm provides interim management solutions, with an emphasis on revenue cycle, performance improvement, and regulatory/ compliance projects.  For further information, please see www.lmcopartners.com

Ares Commercial Finance Provides $32MM Facility to Confluence Outdoor

LM+Co advised new ownership on this transaction.

ABF JOURNAL

Ares Commercial Finance provided a $32 million senior secured revolving line of credit to Confluence Outdoor.

The proceeds of the transaction will be used to refinance the company’s existing debt and to provide ongoing working capital to support the company’s growth.

Located in Greenville, SC, Confluence Outdoor is a portfolio of seven premier watersport brands including Wilderness Systems, Perception Kayaks, Dagger, Mad River Canoe, Adventure Technology Paddles, Harmony Gear Accessories, and Boardworks Surf.

Ares Commercial Finance is the asset-based lending group of Ares Management. It provides asset-based revolving lines of credit, term loans and stretch loans to middle market and lower-middle market companies.

Her Justice Annual Photography Auction and Benefit raised $2.1 million that will provide for free legal help for women living in poverty in NYC.

Loughlin Management Partners was proud to serve as a silver sponsor of this event

Pictured left to right: Timothy R. Coleman, Amy Barasch, this year’s Honoree Matthew A. Feldman, and Rachel C. Strickland.

Thank you for making this year’s Her Justice Annual Photography Auction & Benefit a terrific success! Thanks to your generous support, we raised over $2.1 million for free legal help for women living in poverty in NYC. 

“In helping its clients, Her Justice is able to help entire families over multiple generations live better, more productive lives. Each of you is on the front lines of helping these women and children.”
– Matthew A. Feldman, Esq.

Join us on the front lines of justice by making a contribution today. View photos from the event! More to come this week in our newsletter and on our website.

LM+Co Capital Completes Sale of Xpress Global Systems

Press Release

Chattanooga, Tennessee – December 21, 2018 – LM+Co Capital, a New York-based middle market investment banking firm, is pleased to announce the sale of its client Xpress Global Systems (“XGS” or the “Company”) to Aterian Investment Partners (“Aterian”). Weil Gotshal & Manges LLP advised Aterian, and Reed Smith LLP advised XGS. Financial terms of the transaction were not disclosed.

XGS is the leading specialized LTL provider of time-definite surface transportation, warehousing, distribution and related value-added services to the Floor Covering Industry. The Company operates 28 service centers across the United States and services more than 3,000 customers.

Richard Zytkowicz, Managing Director with LM+Co Capital, stated “LM+Co Capital is very excited for Darrel Harris and his management team as they embark on the next chapter with the Company. Mr. Harris is a very successful CEO and operator with a proven track record in the Transportation Industry. The completion of this sale establishes a solid platform to explore and launch additional growth initiatives. We are honored to have been involved in such an exciting transaction”.

XGS Chief Executive Officer Darrel Harris noted, “Rick and the LM+Co team were instrumental in managing the various complexities of this transaction. They provided strong support and expertise throughout the sale process.”

About LM+Co Capital

LM+Co Capital is an independently operated affiliate of Loughlin Management Partners + Company, a multi-disciplinary professional services firm focused on the middle market. LM+Co Capital, a registered broker dealer and member of FINRA/SIPC, is solely focused on the middle market, providing investment banking and advisory services to corporations, investors, private equity groups and business owners. LM+Co Capital offers its clients years of experience in Mergers + Acquisitions, Capital Advisory, Financial Restructuring and Business Valuations.

About Aterian Investment Partners

Aterian Investment Partners is an operationally-focused middle market private equity firm that provides resources to companies to further enhance growth, operations and investment initiatives. The firm invests in businesses generating $25 million to $500 million of annual revenue with strong, proven franchises.

LM+Co COMPLETES SUCCESSFUL REFINANCING OF THE PROCURE PROTON THERAPY CENTER IN NEW JERSEY

Somerset, New Jersey (September 19, 2018) — Loughlin Management + Company, a New York-based firm, focused on operational and financial turnarounds, announced the successful refinancing of its client, ProCure Proton Therapy Center (“ProCure”), located in Somerset, New Jersey.  

The LM+Co team implemented operational and financial strategies to grow patient volume, increase reimbursement per treatment, improve collections and mend relationships with the local physician group. These strategies have helped the Center increase revenue and profitability.  With the successful operational turnaound, LM+Co advised the Center on completing a $150 million tax-exempt bond and subordinated bond transaction. Proceeds of the financing were used to refinance debt and to buyout the Centers’ former ownership group by the Pubic Finance Authority.  With access to longer term financing, the Center is well positioned for future growth. 

About ProCure Proton Therapy Center in Somerset, New Jersey
ProCure Proton Therapy Center, was the first proton treatment center in the NY/NJ/CT tri-state area and the 10th facility in the United States. ProCure has treated over 3,000 patients since opening its doors in 2012, providing access to cancer patients from New Jersey and across the world, with this life-changing treatment.  Today, ProCure remains the only multi-room proton center in the tri-state area and is the only center with the precise pencil beam scanning capabilities. 

Proton therapy is an advanced form of radiation that destroys cancer cells by preventing them from dividing and growing. Unlike standard X-ray radiation, it uses protons – positively charged sub-atomic particles – which precisely target tumors. Proton therapy reduces the risk of damage to healthy tissue and organs near the tumor, and potentially allows patients to receive higher, more effective doses of radiation, but with fewer side effects.

About Loughlin Management Partners + Co
In Private Equity Value Creation, Turnaround + Restructuring and Corporate Finance, LM+Co has distinguished itself by focusing on identifying and implementing actionable solutions and delivering results that maximize enterprise value. LM+Co has a dedicated healthcare team that can assist companies to improve operations through revenue enhancement, cost reduction and working capital improvements.  The firm provides interim management solutions, with an emphasis on revenue cycle, performance improvement, and regulatory/ compliance projects.  For further information, please see www.lmcopartners.com

LM+Co Capital’s Q2 2018 Newsletter


newsletter

We are pleased to present LM+Co Capital’s Q2 2018 Middle-Market Update. This newsletter offers a recap of 1H 2018 activity and an overview of key trends impacting current US Mergers and Acquisitions (M+A) and Capital Markets for the balance of 2018.

 

*LM+Co Capital is an independently operated affiliate of LM+Co. A licensed broker dealer, LM+Co Capital is registered with FINRA, SIPC.

Physicians at California Protons Cancer Therapy Center, provide life-saving therapy when insurance denies claim. LM+Co is currently advising California Protons.

Channel KGTV in San Diego reports of a 22-year-old breast cancer patient in California was denied insurance coverage for Proton Therapy, an advanced form of radiation therapy that carefully targets cancer cells and does less damage to surrounding tissue. This patient has a genetic mutation predisposing her to developing cancer, and with traditional radiation therapy, secondary cancers are likely to develop later on in life. While she appeals her insurance company’s denial of the claim, California Protons Cancer Therapy Center was able to make an exception and move forward with the therapy she needed. In the patient’s own words, “You can’t wait when your life is at risk.” A team of restructuring professionals from LM+Co is currently serving the treatment center.

Learn More

California Proton Therapy Center, LLC Re-Launches California Protons

SAN DIEGO, Dec. 7, 2017 /PRNewswire/ — California Proton Therapy Center, LLC today announced the official re-launch of California Protons, a cancer treatment center located at 9730 Summers Ridge Road in San Diego. California Protons features an expanded physician group and new management team and ownership, effectively positioning the Center for continued excellent patient care, as well as growth and success.

All of the treatment rooms at California Protons are equipped with the most advanced proton beam technology, allowing doctors to treat even the most complex and aggressive cancers. The Center uses pencil-beam scanning technology to precisely target tumors while protecting healthy, normal tissue and surrounding organs. Protons can be delivered within an accuracy of less than two millimeters, making this treatment especially effective at combatting cancer in sensitive areas such as the brain, spine, lung, breast and prostate, and is widely regarded as the best option for treating pediatric patients with cancer.

Dr. Andrew L. Chang, the department Chief of Pediatric Cancers at California Protons, is president of the Proton Doctors Professional Corporation (PDPC), the oncologist group providing clinical leadership at the Center. Dr. Carl Rossi, who has treated more than 9,000 prostate cancer patients with proton therapy—more than any other physician in the world—is the Medical Director of the Center. The Center’s physicians have more than 50 years of collective proton therapy experience.

“At California Protons, we are committed to continuing the delivery of outstanding and effective patient care,” says Dr. Carl Rossi. “By expanding our existing affiliations with the University of California, Rady Children’s Hospital in San Diego and other healthcare institutions throughout the state, we will increase patient access to the Center and, among other things, enhance our ability to participate in clinical trials and research.”

“The Center has been recapitalized and the investor group has provided additional financial support to allow the Center to grow,” says James J. Loughlin, Jr., Managing Partner at Loughlin Management Partners + Co., the healthcare turnaround specialists who are working with the physicians and ownership on the transition plan. “The re-launch of the Center as California Protons is an exciting event and we look forward to a highly successful future working with the team of expert proton physicians, nurses, physicists, technologists and dosimetrists at the Center to make this state-of-the-art cancer fighting tool available to all of the residents of San Diego and California.”

About California Protons
One of only two proton therapy centers in California and 25 nationwide, California Protons combines cutting-edge proton treatment capabilities with a team of radiation oncologists who amass more than 50 years of collective proton therapy experience. The Center leverages revolutionary intensity-modulated pencil-beam scanning technology to release a high dose of cancer-killing radiation that conforms precisely to the unique shape and size of the tumor. This approach effectively targets and treats even the most complex and aggressive cancers, sparing surrounding healthy tissues and organs. For more information, please visit www.CaliforniaProtons.com.

About Loughlin Management Partners + Co
In Private Equity Value Creation, Turnaround + Restructuring and Corporate Finance, LM+Co has distinguished itself with management teams and investors for more than a decade by focusing on actionable solutions across a broad range of industries, and delivering results that maximize value. LM+Co provides a full range of advisory services to companies and their investors, as volatility continues in global energy markets. LM+Co’s Energy + Power team can help companies adjust their strategies, restructure their operations and capital structures to confront turbulent market conditions. For further information, please see www.lmcopartners.com

LM+Co Capital’s Q3 2017 Newsletter


We are pleased to present LM+Co Capital’s Q3 2017 Middle-Market Update. This newsletter offers a recap of 1H 2017 activity, and an overview of key trends impacting current US Mergers and Acquisitions (M+A) and Capital Markets for the balance of 2017.

 

*LM+Co Capital is an independently operated affiliate of LM+Co. A licensed broker dealer, LM+Co Capital is registered with FINRA, SIPC.

Will Grocers Succumb to the Current Retail Crisis?

We’ve recently seen an unprecedented number of retail store closings. Retail bankruptcies in just the first half of 2017 have already surpassed the number of retail bankruptcies for the entire year of 2016. If supermarkets follow in the footsteps of other retail segments, then 2017 could be disastrous. Joining the list of bankrupt companies are Marsh Supermarkets Holding, LLC and Central Grocers, Inc., both of which filed for Chapter 11 bankruptcy in May 2017. What does the future hold for grocers? Are supermarkets facing the same demise as other brick-and-mortar retailers?

The good news is that food is a necessity and not a luxury.  The bad news is that margins are razor thin and competition is relentless. Grocery stores, not unlike brick-and-mortar retailers, are hanging on by a thread, not just trying to thrive but simply survive in this environment. What is driving such intense competition for grocery stores?

  • Food deflation contributed to price wars as grocers passed along savings to consumers; although consumers benefited, the result was even lower margins for grocers
  • Expanding and competing retail channels for groceries including other options such as meal delivery service
  • Invasion of foreign discount supermarket chains in the US; Lidl is a new entrant while Aldi has announced aggressive expansion plans
  • Changing consumer behavior and expectations including convergence of brick-and-mortar and online shopping; delivering perishable and refrigerated goods has some unique challenges

Supermarkets have been somewhat insulated from the online pressures contributing to the demise of some brick-and-mortar retailers. But grocers are no longer immune. As a supermarket operator, are you experiencing these tell-tale signs?

  • Unable to meet sales forecast and experiencing declining same store sales
  • Struggling with cash flow and forced to stretch payables to vendors or requesting an accrual of interest payments
  • Experiencing high turnover including the loss of key management
  • Negotiating with Lenders only willing to extend maturity dates on a short-term basis
  • Cutting your capex spend in half so you have sufficient cash to continue to operate and service debt

If you are spending more time putting out fires than performing your day-to-day duties, then it probably means that your business is in trouble.

The time frame to act is getting shorter and retailers need to conserve cash — to ensure that the runway is long enough to allow for an operational turnaround of the business or debt restructuring, or risk liquidation. Recognizing the warning signs and taking action early will ensure the best possible outcome and preservation of value.

Stop Hemorrhaging Cash

The first step is gaining control of your cash. This may require applying a tourniquet to stop the bleeding.  Be realistic about the performance of your business and understand your cash needs.

  • Develop realistic financial projections so you do not fail before you even begin
  • Understand your cash needs; prepare a rolling 13-week cash flow forecast to understand immediate cash needs and a long-term cash flow forecast to account for one-time payments
  • Optimize liquidity through effective management of accounts receivable and payable; don’t leave money on the table; a simple phone call may be all that’s needed to prompt customers to pay past due amounts
  • Involve the entire organization; ask your employees for creative ways to save money; reward them with a pat on the back or provide monetary incentives

Operational Restructuring

The second step is fixing the business.  Companies need to assess operations and take the necessary action steps to ensure the survival of the business.

  • Identify the problems and find solutions
  • Maximize operating efficiency
  • Improve margins and profitability
  • Stabilize the business
  • Set realistic goals and manage stakeholder expectations
  • Restore the trust and credibility of creditors and employees

Financial Restructuring

Lastly, you may be operating at higher efficiency, but this may still not be enough to service your debt especially for companies that are highly leveraged. A debt restructuring may be necessary to ensure the company’s long-term viability.

  • Develop a plan which maximizes recovery
  • Be transparent and provide clear communication to all parties; be cognizant that lenders or investors may be losing all or part of their investment
  • Assess whether a debt restructuring can be done out-of-court; this will require consensus which may be difficult given different interests among creditors
  • Retain professionals to assist

Summary

Our experience tells us time is of the essence. Companies often wait until they have burned through their cash and depleted other resources before taking action. A turnaround specialist or Chief Restructuring Officer (“CRO”) has the independence and can make the hard decisions. Often a company in crisis will have lost credibility and the trust of its creditors and employees. A CRO can build the consensus necessary for a successful turnaround of the business, leaving Management to focus on operations, safeguard the business and prevent further deterioration.

The entry of Lidl in the US, aggressive domestic expansion plans of Aldi and the combined forces of Amazon and Whole Foods will only make it more difficult and disruptive for grocery operators in 2017 and beyond.

Loughlin Management Partners + Company (“LM+Co”) has a team of turnaround and retail specialists that can assist companies in navigating the complexities of the corporate restructuring process.