MCA Financial Group practices nationwide, serving clients from a variety of different industries. Our experience in various industries as well as technical expertise in Corporate Restructuring, Litigation Support & Expert Testimony, Mergers & Acquisitions, and Valuation Services enable us to provide quality solutions in a timely manner.
INDUSTRIES IN WHICH WE HAVE SIGNIFICANT EXPERIENCE INCLUDE:
The secured lender to a distressed transporter of bulk liquid commodities hired MCA to perform collateral review, analysis, and a valuation of the company. The PE investor decided to withhold additional funding and further complicated the workout. MCA maintained strong lines of communication with the lender and its counsel. The lender, following guidance based in our valuation and strategic and tactical input, pushed financing onto the prospective buyer, recovering the majority of its loan and avoiding litigation and a costly and unnecessary chapter 11.
Steel Fabrication & Erection; Construction Management
Before advancing additional funds, the senior lender engaged MCA to verify the borrower’s business operations and collateral. MCA worked with key personnel to attain information and data. We examined the accuracy of company-produced unaudited financials, borrowing base data, assets, and AR, reconciling cash activity and scrutinizing current contracts. We identified third-party customer contracts and validated existing equipment, inventory and operations. Swift deployment of MCA's talented team led to delivery of a thorough report to our client.
AZ, NV, UT, CA
Clinical Laboratory Testing
MCA was engaged by the defendant to provide litigation support and expert testimony in response to a lawsuit brought by a private lender regarding a dispute over the payments of principal and interest calculated pursuant to a promissory note. MCA initiated a plan to attack a multi-year accounting reconstruction, prepared a profit analysis, reviewed the plaintiff’s expert report, and delivered an expert rebuttal report. MCA’s analysis of the plaintiff's assumptions identified multiple flaws and errors in its calculation of damages.
Pet Cremation Services
MCA prepared a valuation for the purpose of determining a fair price for the business, assessed market conditions, identified and contacted credible buyers, facilitated due diligence reviews, and managed the sale process through the successful closing of the transaction. Despite an unforeseen wholesale change in the identity of the buyer in the middle of the sale process, MCA’s guidance resulted in upholding terms originally agreed to between MCA’s client and the original buyer.
Dermatology Medical Practice
MCA Financial's team identified risks and hurdles that could impact the valuation and acquisition. Requisite information on the target company and pertinent industry data were collected, verified, and analyzed within the context of both current and anticipated market conditions and against recent comparable medical practices and group transactions. A quick and efficient due diligence allowed our client to negotiate well in advance of closing and strengthened their position during the process. The client closed the deal with confidence and clarity.
MCA was retained to review and advise on a proposed merger. Working with professionals on both sides, MCA extracted data and information to determine the merger’s efficacy. Pre and post-merger shareholder interests, valuation methodology, merit of the transaction terms, and the merger agreement were scrutinized. MCA found that the treatment of its client was fair and reasonable and that their interests were represented in the agreement, Platinum's physician shareholders approved the merger.
MCA ran the operations and managed a fast, but complex, business sale process. MCA created a 13-week ABC budget with approval of the secured lender; identified key transition obstacles and generated practical solutions to avoid delays; ensured all parties adhered to the agreed upon plan and timeline; and led the smooth transition of merchant accounts, vendor relationships, employees, and employee benefits. The concern sale closed in less than 30 days.
Olive Farming & Processing
MCA extracted and analyzed pertinent data from a large data set, performed product and customer profit analyses, and evaluated overhead, staffing, and capital expenditure plans. Distressed valuation skills and the ability to work with Management in a high-pressure environment lead to the creation of an achievable turnaround plan, including detailed projections, key issues identification within the target’s standard costing system, and true value proposition of key customers and product lines.
Sub-Prime Lending & Rental Car Franchisee
An absentee owner hired MCA to investigate critical liquidity crunches at two companies. MCA’s experts discovered losses stemming from fraudulent. Nine secured lenders appointed MCA to an independent leadership role. MCA took control of the companies, managed cash and operations, and developed a Plan to maximize recovery for all lenders. MCA collected on loans, repossessed and sold equipment at auction, and recovered on malpractice and other litigation matters, resulting in recoveries for creditors and relief for the borrower.
$20MM Loan Receivables
$25MM Annual Revenue
Mobile Banking App
The secured lender engaged MCA Financial Group to verify the borrower’s Enterprise Value. MCA consulted with stakeholders, determined the scope and timing of the valuation, and launched into a thorough and focused assessment of the company’s industry, business model, and financial data. MCA interviewed management and investigated industry-specific M&A transactions, competitors, and financial metrics. MCA’s comprehensive valuation report established the loan balance was adequately secured, providing for future economic resilience.
The hospital opened without requisite working capital and soon faced a financial crisis. The secured debt was funded through an EB-5 Visa program, a USCIS program for foreign investors created to stimulate the U.S. economy through job creation and capital investment. Approximately 112 foreign families pursuing green cards comprised the $56 million EB5’s debt. MCA secured a senior real estate lender to fund operations and the restructuring plan.
Physician Group Medical Practice
Hired by both parties in a divorce, MCA’s professionals completed a business valuation of a multi-physician medical practice. MCA analyzed the financials, interviewed the parties, researched the industry and the market, addressed growth options, and selected a valuation approach. MCA’s attentive team delivered a thorough and objective business valuation that served as a basis for the divorce settlement.
After opening a second 500,000 sq. ft warehouse, the company ran out of cash and faced shutdown, as the secured lender was not willing to advance on operating losses. MCA implemented a plan to consolidate ops, reduce inventory, and adjust costs to regain break even cash flow. MCA secured real estate and ABL lenders through a successful sale process, resulting in full recoveries/recoveries for the secured/unsecured lenders.
MCA Financial was retained to review the annual forecast and conduct a business assessment. MCA analyzed the company’s data, revenue, cost inputs, projected financials and additionally identified opportunities for improvements within the operations. A 13-week cash flow and detailed analysis and more was presented, advising the company on a path toward liquidity and growth.
MCA was the court appointed receiver for a group of companies who provided blending, packaging, and production of real dairy and dairy substitutes. The company was over-advanced on its line of credit and out of cash. MCA developed and led a restructuring plan that reduced expenses and sold each facet of the business to different buyers, resulting in full payment to the bank and payment to certain unsecured creditors.
MCA was engaged by the lender in a non-dischargeability case against an individual Debtor for a judgment of $17MM. MCA investigated historical activity, and provided expert reports and testimony illustrating fraudulent financial statements and unauthorized use of loan proceeds. MCA’s independent and objective work researching the facts assisted the court in concluding that the debt was, in fact, non-dischargeable to the debtor.
The owners of the auto dealership engaged MCA Financial to review its LOI and the terms and documents of its prospective sale and building lease. MCA detailed findings in a report, which advised the seller on the terms of the sale and the proposed lease of the building to the prospective buyer, resulting in an increase in the sale price and to more favorable lease terms with the buyer.
MCA Financial Group was hired by a family office to perform due diligence and the valuation of a 200MM real estate investment opportunity. MCA’s team’s real estate industry experience was key in its ability to quickly and expediently evaluate and report on the investment opportunity, empowering its client to proceed with confidence and resolve.
$200MM TRANSACTION ON VALUE
MCA was engaged by counsel to serve as the economic damages expert and to analyze and rebut the plaintiff's claims for damages. MCA’s established material errors and flaws in the plaintiff's damages calculations and assisted the defendant’s legal counsel in prevailing on summary judgment, resulting in a dismissal for its client.
Retained by Secured Lender after payment default by borrower. MCA was appointed as a Responsible Party by the Bankruptcy Court in NY to oversee and maintain operations during the pendency of the Ch. 11 case. Lender credit bid to own business and retained MCA to manage and rebuild profitability and then manage the business sale process two years later.
NEW YORK, PENNSYLVANIA,
Oil Country Tubular Goods
MCA was retained to develop and implement an operational restructuring plan together with management and advise on loan restructuring and financing. With management, successfully reduced excess working capital, restructured or eliminated unprofitable customer relationships and improved EBITDA.
TEXAS/CENTRAL US REGION
Used Car Sales / Auto Finance
MCA investigated material loan defaults and potential fraud for the asset-based lender and was subsequently appointed receiver by the Chancery Court. MCA mobilized quickly to take control of finances, maximized collateral, and executed on the sale of the remaining loan portfolio.
Manufacturer of Mobile Antennas
MCA was appointed Receiver during a shareholder dispute to oversee and maintain operations and lead the company through a court ordered dissolution process. MCA lead operations and managed a successful sales and marketing effort for the business resulting in a Court approved sale.
Pawn Shop/Title Loan Chain
MCA Financial Group provided litigation consulting services and forensic accounting services. MCA issued an independent and compelling expert report, testified at trial, and successfully rebutted the opposing expert opinions. The court found in favor of MCA’s client.
METRO PHOENIX, ARIZONA
Bar/Liquid Soap Manufacturer
MCA was retained by secured lender to assist in navigating through a material loan default by its borrower on a $40 million loan commitment. Borrower was suffering losses and MCA developed strategies to trigger a recapitalization of the company including a 100% repayment to MCA's client.
Remanufacturer of Toner Cartridges
After material industry changes, MCA was appointed Receiver to manage operations and lead a sale process in an effort to repay creditors. MCA's efforts resulted in 100% recovery for all secured lenders and reduced recoveries for unsecured creditors. Neither would have been accomplished through a straight asset liquidation and MCA's ability to maintain the operations while leading a sale process greatly enhanced value.
Apparel Manufacturer and Direct Sales
Retained by Secured lender to assist and oversee business wind-down and sale of assets. MCA Financial Group’s retail industry expertise, keen handling of shifting market conditions, and commitment to collaboration with management were key in the successful development and execution of a revised liquidation strategy.
Physician Group Medical Practice
Retained to investigate inappropriate accounting and payments by a partner in this practice. MCA's report was utilized and relied upon by the physician group’s outside counsel in mediation to effectuate a settlement, saving the physician group considerable time and costs.
Attendant Healthcare Services
MCA completed the sale of an attendant care services company which was affiliated with Arizona’s medicaid program, AHCCCS. Retained by the owner, MCA’s team conducted a thorough valuation of the business, determined pricing, and created marketing material highlighting the business operations and financials and more.
Sand & Gravel Operations
MCA Financial served as the exclusive advisor to the owner of a large, strategically important construction aggregates operation. MCA’s team managed the entire sale process and facilitated the due diligence and negotiations with the buyer. Numerous purchase offers were received, and a successful transaction closed.
MCA developed a 36-month “pandemic” plan, which became critical for the survival of this restaurant operator that had been impacted severely by the pandemic. MCA’s forward-looking strategy included restructuring both the senior and subordinated lenders’ notes and ensuring survival and sustainability for the client, its lender partners, and its suppliers.
Merchant Services Processing
MCA was retained by management and shareholders to review the already negotiated terms of its sale to a much larger strategic player in the industry. Based on MCA's strong analysis, the client successfully renegotiated the terms of the transaction, resulting in a significantly increased purchase price and improved terms for the seller.
Fast Casual and QSR
MCA Financial played a key role in financing for a national restaurant chain with over 100 locations. The SBA’s Main Street Lending Program -- Expanded Loan Facility or MSELF provided an excellent restructuring solution for this pre-pandemic healthy company needing a bridge to better times.
Ticketing and Fan Engagement Technology
Retained to serve as CRO and as an independent director. MCA guided the continued operations of the business and procured a loan through the PPP program, recapitalized the company and effectuated an orderly transition with near full recovery of senior debt.
Sub-prime Automotive Dealer-Lender
MCA was appointed as a state court receiver over the business operations of a subprime automotive dealer/lender. The case relied upon MCA’s expertise in the automotive industry to investigate vehicle title transactions and movement throughout several states in order to prove fraud and other violations by the company’s owners. MCA assisted in asset recovery and obtaining judgments for the benefit of creditors.
Aerospace Parts Manufacturer
MCA served as Interim Chief Financial Officer for this national aerospace parts manufacturer for approximately 10 months, on behalf of an institutional majority shareholder. MCA led business improvement plans and enhanced financial reporting. MCA supported the business sale process including due diligence, negotiations, and closing.
Concert Promotion Business
MCA was appointed liquidating trustee pursuant to a confirmed plan of liquidation regarding an alleged Ponzi scheme, in which owners of a concert promotion business had perpetrated a fraud involving in excess of $50 million. MCA was responsible for preparing detailed analysis of all cash sources and uses, negotiating final asset recovery and final distribution under the plan, and providing expert witness testimony in the U.S. Bankruptcy Court, District of Arizona.
$50MM OF FRAUD
MCA was the court appointed receiver for this provider of prenatal ultrasound screening and related testing. The company shareholders were in dispute over operations and ownership, and were under investigation by regulatory agencies and was running out of cash. MCA led a successful negotiation and settlement with regulatory agencies, implemented revised procedures, closed under-performing locations, and negotiated a settlement between the shareholders resulting in the sale of the company.
MCA was retained by the board at critical juncture in growth strategy. After opening a second 500,000 sqft warehouse, the company ran out of cash and faced a business shutdown, as the secured lender was not willing to advance on operating losses. MCA developed and led a reorganization plan to consolidate operations, substantially reduce inventory, and adjust costs to regain breakeven cash flow. MCA led the company and the secured real estate and ABL lenders through a successful sale process via the Delaware Bankruptcy Court, resulting in full recoveries for the secured lenders and recoveries for the unsecured lenders.
MCA was appointed receiver over a multi-state organization holding real estate investments, limited partnership interests, and joint ventures by a group of creditors to search, secure, and recover on assets. Lender and investor obligations exceeded $100 million and the process was highly litigious. MCA successfully recovered and monetized assets for distribution to lenders and investors.
EXCEEDED $50MM ASSETS
MCA was the court appointed receiver for a group of companies with locations in Ohio, Nebraska, and California who provided blending, packaging, and production of real dairy and dairy substitutes. The company was over-advanced on its line of credit and out of cash. Significant vendor issues existed. MCA developed and led a restructuring plan that reduced expenses and sold each facet of the business to different buyers, resulting in full payment to the bank and payment to certain unsecured creditors.
MCA was the lender’s advisor for a $75 million national 3PL (supply chain management solutions, logistics services, and other related supply chain driven services). The company had identified the potential embezzlement of what was estimated to be $8 million by their Chief Financial Officer. Out of cash and in an over-advanced situation with the lender, vendors had stopped shipping and operations were at a standstill. MCA helped to identify additional embezzled funds bringing the total to $16 million. MCA was appointed Chief Restructuring Officer and successfully negotiated with the lender and vendors to reestablish production and operations. With operations reestablished the bank was able to sell its note, with minimal deficiency, to a private equity buyer.
O&G Field Services
Faced with over $50 million in debt and cash losses, MCA successfully led the sale of non-core energy related assets and restructuring of core operations, including a feed mill, sand and gravel operation, and 3PL services in an out-of-court restructuring. Creditors were repaid and the remaining operations were properly capitalized through a refinancing.
Waste and Recycling
MCA was retained by one of the largest independent waste management companies in California. The company was in default with its lender and was running out of cash due to material losses from several non-core business investments. MCA developed and led a restructuring plan to divest of all non-core investments, implement operational efficiencies, reduce costs, improve cash flow, and structure a forbearance agreement with the bank.
As receiver and property manager of the Super 8 Goodyear, MCA has successfully transitioned operations from the borrower to the receiver. Since MCA’s appointment, the Super 8 Goodyear has reported 6 profitable months resulting in a successful sale.The Super 8 Goodyear is a 90 room limited service motel built in 1986 which is located 15 miles from downtown Phoenix.
During the 10 month engagement at lumiere, MCA sold 3 condominiums and turned an operating loss into an operating profit with hands on management and successful expense controls.lumiere is located at the base of Telluride Mountain in the Mountains Village community. The boutique hotel offers the finest in luxury accommodations.
18 LUXURY RESIDENCES
Ice Cream Stores
MCA provided business valuation services to the board of this firm to assist the board in an independent determination of fair market value during a business sale process. MCA’s analysis included in excess of 1,400 store locations, including both franchisee and company-owned stores.
MCA was retained by a West Texas family to value and sell a multi-store grocery operation. MCA determined the appropriate range of values, then went to market in a targeted effort to seek the appropriate buyer. MCA led the negotiation and successfully managed the process through closing.
Mortgage Servicer & Insurance Recovery Provider
MCA served as financial advisor to a subordinated debt holder as part of a $100 million capital structure, including senior term and revolving debt. MCA advised on restructuring plans and on a spin-off transaction in a successful debt for equity swap. MCA also assisted in post-transaction integration matters.
Ceramic Break Pad Manufacturer
MCA was retained by a national lender to prepare an expert report containing MCA’s opinions and to provide expert witness services, as to whether an automotive brake manufacturer had sustained damages totaling up to $40 million as a result of its alleged inability to complete a “strategic alliance” with a national distributor. MCA’s expert report, which established that the plaintiff’s alleged claims had no merit, was relied upon in reaching a successful out-of-court settlement for the lender.
MCA was retained by a business brokerage firm that was being sued by the buyer in a post-transaction dispute regarding standard of care. MCA analyzed the relevant documents and accounting records, and interviewed the business owners to assess the merits of the buyer’s alleged claims. MCA's expert report and expert testimony led the court to rule in favor of MCA’s client.
Flight Control Displays
MCA was retained by an international manufacturer of flight control systems to lead and manage the spin-off of a sophisticated display manufacturing subsidiary as part of a management buyout transaction. MCA performed valuation services, negotiated the transaction, and managed the process through closing—including work on ITAR and other State Department issues, given the military and defense components of the business.
MCA was retained by management to perform a valuation of the company, in conjunction with a buy-back plan from minority shareholders, of this formerly publicly traded firm. MCA completed the valuation and prepared a valuation report that was distributed to the minority shareholders along with a tender offer. Management was successful in completing the repurchase of minority shares at a defensible value, which was mutually beneficial for the company and the minority shareholders.
MCA was retained as a valuation expert by a group of dissenting minority shareholders, who were forced to sell their shares as a result of a merger transaction carried out by the majority shareholder. MCA prepared a valuation report for the dissenting shares, prepared a rebuttal report for an opposing expert’s report, and testified in court in support of the valuation. The dissenting shareholders were ultimately awarded a judgment that was five times in excess of the amount previously paid in the merger transaction, plus fees and costs.
Utility Repair & Maintenance
A national utility repair and maintenance firm was sued by a utility for allegedly causing a catastrophic failure of a 240 megawatt power generation facility. MCA was retained by the repair firm to counter damage claims for replacement costs in excess of $35 million. MCA successfully prepared a damage analysis report that was used in the settlement process for this matter—resulting in a favorable outcome for the client.
MCA was engaged as receiver and property manager by the secured lender. The three-story building was 60% occupied at appointment with deferred maintenance issues. MCA worked through its standard receivership checklist, identifying irregularities between the bank statements and balance sheet cash accounts. At request of the lender MCA drilled down to discover nearly $150,000 had been diverted from the operating account to the borrower and several vendors. MCA worked with counsel to get the monies returned to the lender.