Overcome Your Cash Flow Challenge Paul Trost Will Bloom Alan - - PowerPoint PPT Presentation

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Mar 20, 2023 429 likes •557 views

Overcome Your Cash Flow Challenge Paul Trost Will Bloom Alan Carlyle Managing Director Managing Director Senior Consultant Professional Fiduciary Services Chartwell Fifth Third Bank OVERCOME YOUR CASH FLOW CHALLENGE I Situational

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Overcome Your Cash Flow Challenge

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Alan Carlyle Managing Director Fifth Third Bank Paul Trost Senior Consultant Professional Fiduciary Services Will Bloom Managing Director Chartwell

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OVERCOME YOUR CASH FLOW CHALLENGE TODAY’S AGENDA

Proactive Internal Financial Review & Initiatives

II

Third-Party Funding Resource Management

III

ESOP Repurchase Obligations

IV

Situational Assessment

I

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Situational Assessment

I

Are you in a mandatory shut-down State/County? Will you be? Are you an Essential Business that can remain open? Will your suppliers continue to supply? Will your customers continue to buy?

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Proactive Internal Financial Review and Initiatives

▪ Conserve Cash – Prioritize Fixed & Variable Costs ▪ Accelerate Accounts Receivable ▪ Extend Payables ▪ Inventory Management (if applicable)

Churn rate
Seek lower cost of

goods ▪ Budget Review ▪ Rent Abatement Options ▪ Variable Cost Reductions ▪ Reduce Service Levels ▪ Defer Growth CAPEX ▪ Prioritize Maintenance CAPEX ▪ Measure Sensitivities

II

Working Capital Management

CAPEX Review Expense Control

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Third-party Funding Resource Management

III

REVOLVER DRAW INTEREST ABATEMENT WAIVE EXCESS CASH FLOW RECAPTURE PRINCIPAL PAYMENT HOLIDAY COVENANT WAIVERS

1 2 3 4 5

Traditional Financing Sources – Commercial Banks:

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Third-party Funding Resource Management (Cont’d)

III

Non-Bank Loan Market: Private Equity:

Traditional Financing Sources (Cont’d):

Stretch Asset-Based Lending Distressed Liquidity Lines Mezzanine Financing Institutional Retail

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Third-party Funding Resource Management (Cont’d)

III

Resources*

*Please consult your legal and tax advisors for detailed information on any programs mentioned herein

Government Programs

Secondary Financing Sources:

▪ U.S. Department of Labor: https://www.dol.gov/coronavirus ▪ U.S. Small Business Administration: https://www.irs.gov/coronavirus ▪ IRS Coronavirus Tax Relief: https://www.sba.gov/disaster-assistance/coronavirus-covid-19

SBA Disaster Relief Loans Paycheck Protection Program (PPP) Payroll Tax Deferral Payroll Tax Credit Commercial Business Interruption Insurance

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Third-party Funding Resource Management (Cont’d)

III

Fin-Tech SMB Bridge Loans Factoring Facilities ESOP Seller Notes Senior Management Team Reinvestment

Secondary Financing Sources

Secondary Financing Sources (Cont’d):

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RO Management Options: ▪ Plan Document Review ▪ Distribution Planning & Timing ▪ Termination, Diversification, & Segregation Practices ▪ Interim Valuation ▪ Covenant Waiver Requests ▪ Conversion to Notes Key Considerations: ▪ Communications

Plan Participants
Trustee
Advisors: ESOP Counsel, TPA,

Financial Advisor ▪ Historical Practices & Distribution Policy ▪ Plan Amendment ▪ Fairness Considerations ▪ IRS Discrimination Test ▪ Associated Fees

ESOP Repurchase Obligations

IV

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Thank You

Will Bloom, Alan Carlyle, Paul Trost will.bloom@chartwellfa.com alan.carlyle@53.com Trost@professional-fiduciary.com