MCA Financial Group was engaged by a private equity-backed transportation management software and freight brokerage firm, with the support of its secured lender, to navigate a complex financial fraud. The engagement began when the company’s principal shareholder misappropriated funds and abruptly disappeared, leaving behind a $15 million balance, undisclosed borrowing, and a tangled web of financial irregularities. With the company in disarray, MCA stepped in as Chief Restructuring Officer (CRO) to stabilize operations, assess the financial damage, and chart a path forward.
MCA’s forensic accounting team reconstructed financial records and worked with legal teams to build a case against the former principal. Amidst multiple lienholders and competing claims, MCA successfully structured and executed an asset sale, separating the brokerage and software divisions. The brokerage assets were sold to a third party, while the lender exercised its credit bid rights to acquire the software assets, forming a new standalone business.
Following the transaction, MCA was retained as Interim CFO to establish financial and operational infrastructure for the newly independent software entity. Over the next four years, MCA provided financial support to the company through a period of significant expansion in the software business.
This engagement presented unique challenges, including financial mismanagement, fraud, and legal complexities in a multi-party negotiation. MCA’s expertise in forensic accounting, financial restructuring, and operational leadership played a pivotal role in not only stabilizing and monetizing the business but also enabling the transformation of the software business into a successful enterprise.
The lender’s long-term reliance on MCA underscores the firm’s ability to drive successful turnarounds and build lasting value in distressed situations. From crisis intervention to long-term growth, MCA’s impact on this engagement highlights its deep expertise in financial restructuring, strategic leadership, and operational excellence.