Client Quotes:

    Kenneth A. Steele
    Chief Financial Officer

“We engaged Richard Henry Group for its deep expertise in turnaround management.
Our needs were immediate and far-ranging,
and their team of experts in accounting,
finance, management, logistics, legal
documentation and recruitment delivered
right from the start. They provided interim
management leadership during our re-
engineering of personnel, and recruited
several key positions in shipping and
logistics, inventory control, accounting and
finance. With an aim toward producing a
continuation recommendation plan, they
provided due diligence and cash-flow
management services, compiled
documentation of contracts, worked with
outside legal counsel, obtained capital
appraisals and valuations, and
orchestrated a year-end physical inventory.
Richard Henry Group helped us source
several external capital financing options
and replace an existing credit facility under
extenuating circumstances. They created
financial forecasts for potential outside
lenders and built presentations and
packages for potential outside capital
lenders. Their entire team offers a truly
unique mix of experience, professionalism,
precision and tactfulness. I would highly
recommend them to potential clients. ”


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Outline of Services Performed:

  • crisis management
  • debt restructuring
  • turnaround management
  • business process improvement
  • executive staff recruiting
  • lender due-diligence preparation

Beneficiary of RHG's Expertise:

    Poor financial performance in 2004, 2005 and 2006,
    resulted in the Company’s bank requesting that it find a
    new lender.  The Company negotiated an “informal
    forbearance” agreement to outline the conditions for the
    bank’s exit.  As the Company was approaching the end
    of the second forbearance period with neither new lender
    nor a plan for one, the Company’s accounting firm
    recommended RHG’s help.  In December 2005, RHG
    was engaged to navigate the banking crisis, stabilize the
    relationship, and quickly develop a strategy and process to
    turn the Company’s financial and operational performance
    around and refinance its debt with a new lender.   

Detail of Services by RHG:

    Richard Henry Group immediately developed a 13-week
    cash flow plan and presented to the current lender its plan
    to stabilize the existing relationship and extend the
    forbearance period.  This action gave sufficient time to turn
    the Company around, improve financial and operational
    performance, and find a new lender.
    In order to identify problems causing the poor financial
    performance, RHG analyzed, assessed, and recommended
    constructive changes regarding the following:  

  • existing financial reporting systems,
  • cash flow issues,
  • operational performance,
  • staff capabilities,
  • banking processes,
  • vendor relationships,
  • customer relationships,
  • inventory management,
  • outstanding litigation issues,
  • sales and marketing processes,
  • current debt,
  • recurring and non-recurring expense issues.

    After stabilizing the banking relationship, RHG moved quickly
    to accomplish the following:

  • recruit, negotiate, and hire an individual to replace
    the existing controller with a Chief Financial Officer;  
  • replace the Accounts Receivable / Collections
    person with an Accounts Receivable Manager;
  • recruit, negotiate, and hire a Vice-President of
    Manufacturing Operations recommended by RHG;
  • recruit, negotiate, and hire an Inventory Control
    Manager and a Traffic Control Manager
    recommended by RHG.

    With the new personnel, RHG:

  • completed the financial turnaround plan,
  • counseled management on business strategy,
  • instituted weekly management meetings and daily
    production vendor payment meetings to align cash
    management with product requirements,
  • coordinated company cash management procedures,
  • presented the turnaround plan to several RHG-
    selected lenders to develop interest,
  • prepared the company for new lender due diligence
    and directed that process with new lenders,
  • negotiated new lender agreements,
  • directed the negotiation of new real-estate leases,
  • successfully established a new lender without any
    loss of capital to the old bank.  

    As a result, the Company was able to add required
    personnel and purchase the additional capital equipment
    needed to expand.

    turnaround & refinancing
RICHARD             GROUP, LLC
Meaningful Partnerships
Consequential Change
Measurable Results
Business Development and Turnaround Advisors
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Richard Henry Group, a
northeast Ohio business
development and turnaround
advising firm, announces the
launch of its new website.  The
website has been created to
reflect Richard Henry Group’s
organizational culture, strategy,
and uniqueness.  The website
may also be used as a
resource tool by Richard Henry
Group’s referral partners and
its current and prospective
clients.  www.RHGsolutions.
com provides visitors with case
studies, a news archive, and
the most recent news about
the company.  The website has
been developed and
maintained by
Consulting.  Richard Henry
Group would like to invite
interested parties to visit its
newly developed website and
submit their feedback.