Hello and welcome to today's webinar. Our speakers today are Tori Hammer, Andrew Soon, and Chris Lang from Moss Adams. Before I turn it over to them, I'd like to let those of you who are live with us know that you may submit questions during the webinar via the chat box in the lower left side of your screen. The slide deck from today's presentation is available as a PDF in the handouts tab of the webinar homepage. This webinar will also be recorded so that you may watch or re-watch on demand at your convenience. With that, I will turn it over to Tori. Yeah, thanks, Liz, and thanks to the AED for putting this on, and thanks everybody for joining. I think we have a pretty interesting presentation for you today. As Liz mentioned, I'm joined by a couple of colleagues here. My name is Tori Hammer. I'm a partner at Moss Adams, which is a large regional accounting firm and financial services firm. I also lead our equipment dealer practice at Moss Adams. With me, as Liz mentioned, is Andrew Soon. He's a partner in our investment banking practice, and also Chris Lang, who is a partner and a leader of our restructuring practice. So as part of this presentation, again, I think we've got some interesting topics we're going to go through. Andrew's going to take us through an M&A update, talk a little bit about what we're seeing for the middle market for this industry. We'll give some commentary on what our clients are seeing and just some anecdotes on what we're hearing. Then Chris is going to take us through a cash flow management presentation and just some best practices in terms of positioning your company for growth post-pandemic. With that, Andrew, I think I'll just turn it to you to take us through the M&A update. Hey, thanks, Tori, for the introduction again. This is Andrew Soon. I'm a partner in our investment banking and M&A advisory practice. I think just real quickly, by way of background, I'm largely focused on, call it the broader industrial manufacturing and distribution industry. So I think most of the data points and slides are really centered on businesses, again, in those broader industrial sectors. But anyway, by now, I think we're all probably pretty accustomed to working from home, our new reality. We're juggling childcare and family responsibilities. I think we were having a couple of laughs before this started. Quite frankly, we're in a world of extreme volatility, uncertainty, and change. As we near more than two months of lockdown measures, there's still breaking news every hour. So in a very, very simplified manner, I just wanted to quickly recap some of the high points on the recent monetary and fiscal policies called the beginning of March. As you can see, at the beginning of March, if you all recall, the Fed made a 50 basis point rate cut. I remember the reaction from some folks being very much along the lines of, why would you waste all your bullets? What if we get deeper, and if you have nothing left to utilize? Well, just two weeks after that, they dropped the rates down to zero. Time after time, over the last several weeks, have pledged to keep that near zero for the foreseeable future. They keep expanding their quantitative easing programs, the scope and quantity of its asset purchases. Really, by mid-March, what you see is basically the alphabet soup of all sorts of facilities that are really designed to ensure availability of credit and liquidity in the market. Ultimately, culminating at the end of March, the $2 trillion relief package, the CARES Act. Then, really, just a couple of weeks ago, another $480 billion worth of relief funds made available. Then, just on Tuesday, House Democrats unveiled another $3 trillion in relief bill. I'm pretty sure I spotted a statement by the Treasury Secretary that he thought it was very partisan, quote, unquote. We'll see how all that shakes out. We're continuing to monitor the situation. The relief funds, it's not likely to be the end of it. It's more likely that there's more to come. That's the quick recap. Again, the fact is we're living in a new reality where COVID-19, it's going to have some pretty lasting effects, we think, on consumer and business behavior. It's caused really extremely uneven disruption across every sector in the global economy. We, Moss Adams, have had a lot of conversations with business owners, with executives, bank lenders, private credit funds, the private equity universe. It's pretty clear that some companies, they're well-positioned in this market. Others are feeling the pain, and then there's everything in between. Again, it's very uneven. I thought I might just hit you with some of the, I think, top recurring themes that, in our conversations, we just keep hearing over and over, over the last couple of months. A couple of different categories here. Under lending and credit, what we're hearing, we're hearing a lot of just requests to expand the revolver or the flooring line or whatever credit facility you've got. We're hearing that spreads, you are able to get that additional barring capacity. It's going to be a little bit more expensive. We're hearing from banks that they're getting from every customer request to increase their lines. From their perspective, they just have to make sure that, frankly, there's enough availability for everybody, or at least the winners in their minds. This is, at the end of the day, portfolio and risk theory. Some other things we're hearing, PPP loans and EIDL loans, those things are occupying a lot of human capital and resources and time for banks. They're going to be a little bit slower to respond. On the transactional barring side, we're hearing that banks are about one to two turns of EBITDA lighter than pre-pandemic. That's pretty significant. They're behaving very in a non-committal way, meaning they're kicking the can for later stage diligence. They're essentially buying themselves time while we work through this period of uncertainty. On the business side, what we're hearing a lot of is number one, number 1A, and number 1B is government relief funds, government relief funds, and government relief funds. First and foremost, you go after that. Other things we're hearing is they're hoarding cash. They're expanding the credit facilities. They're drawing down on that revolver. They're basically asking for every deferral you can think of, debt service referrals, deferrals, rent deferrals, utility deferrals. There's pay cuts, furloughs, layoffs. They're all enacting them. They're all, at least at a minimum, evaluating it. I'd say from an overall business perspective, this is completely anecdotal and kind of generalization and broad strokes, but I think there's value in that still. If you're flat to modestly up, you're doing mighty well. If you're down about 10%, you're probably doing better than most. If you're down 15% to 20%, quite frankly, you're probably about average, but if you're down 25% to 30%, you're feeling the pain. Again, just broad strokes, but just to kind of give you a feel based on the sentiment that we're having in these conversations. For equipment dealers specifically, Tori, feel free to chime in here, too, if you have anything to add or if you feel like I missed something, but just real quickly here, we're hearing equipment sales are definitely down. Rental sales are down, but not as bad as the equipment sales. Though, let's see how May and June play out. We're also hearing that there's a lot of rental equipment sitting idle at job sites, and customers aren't being charged. It's also kind of costly to move that equipment, so we'll see how deep it gets here in May and June. We're hearing that parts and services are holding up pretty okay. In fact, Tori, I think one of the folks we had a conversation with had actually a pretty good fixed cost absorption rate, if I recall correctly. We're hearing pauses on crit elements for flooring lines, and finally, we're actually hearing this a lot, technicians have always been scarce. To the extent that technician talent is out there, it's good talent, you probably want to just pounce on that anyway. That's a common theme as well. Sorry, Andrew, to jump in here, but I think that's a good update, and that's a good summary of just generally what we're hearing from our clients. We are seeing our clients do layoffs and do furloughs, like you mentioned, but they are capitalizing on the technician talent when it does become available. That's kind of an interesting piece of this market. Look, I think very importantly, again, in this environment, and regardless of your situation, this is a very choppy market environment, and our suggestion here is that every business owner, every management team, really should have this hyper-focus, this hyper-attention on cash flow management, on capital management. We'll get into some of those specific tools and analyses in the back half of this discussion, but I'll kind of move on here just quickly. Look, everyone here has been pretty bombarded with all sorts of content and articles on the recent stimulus programs, including the ones here listed on this page, and I'm sure a lot of you attending here today are already in receipt of these funds or at least have applied. We're not going to get into a lot of detail on those various programs here today, but they are complex, they're dynamic, and the rules are ever-changing. Tori, I don't know if you want to jump in real quickly on, I think there was some new guidance on PPP forgiveness. I don't know if there's a remark that you could provide there. Yeah, absolutely. Thanks, Andrew. And something I meant to mention at the top of this, I know the PPP has been a very popular program for this group, and the AED has put out a number of webinars and materials out on this program. It is ever-changing, like Andrew mentioned, and a couple of new questions were added to the frequently asked questions list just this week. The first one, I believe it's number 46, kind of gets to the point of necessity. You probably all read in the news a lot, a lot of companies are getting questioned on the necessity of their loans and their access to capital. Shake Shack is the one that kind of comes to mind, and we've probably all seen in the news recently. Well, the SBA in their frequently asked questions released on Wednesday, they included a safe harbor, and they said that if your loan proceeds are below $2 million, then you are within that safe harbor, and they won't question the necessity of the loans. It's kind of implied that you don't have enough access to capital with your loan being under $2 million. And so I think that's a really nice relief for this group. I think the majority of those loans are under that $2 million number, so that was very nice, I think. Some other things that you've probably read in the news recently is the SBA has said that for loans that are over $2 million, there's going to be some sort of a review of those loans. Well, this frequently asked question thing said, you know, if your loan does get pulled for review and you're over $2 million and they come back and they say, hey, you didn't need the loan, it wasn't necessary for you, you had other access to capital, they're basically just going to make you pay the loan back, and they won't take other enforcement action against you. So I know there's the piece of the application that says, hey, you are certified into these things under punishment of potentially jail time. So this FAQ kind of clarified that and said, hey, we're not going to throw you in jail if we find that you didn't need the loan, we're just going to make you pay it back. So I think a lot of folks are kind of breathing a sigh of relief there, kind of hopefully that clarified a number of things. Also, one was released as soon as last night. They said if you're still considering paying back the loan or not, because, again, from that necessity piece, whether or not if you're considering whether or not you needed it or not, the original due date was today, now they're giving you over the weekend to think about it. So you have through May 18th to pay back the loan. And I'll turn it back to you, Andrew. Thanks. Thanks, Dory. Yeah. So, you know, again, Moss Adams, we've probably as a whole has published just a wealth of information on these topics. So if you have questions, please visit the website or feel free to contact us and we can kind of help get through some of the specifics or guide you through it. You know, I think as it relates to, let's just say, some of the non-government financing options that are available out there, you know, that really leaves you with, you know, called the traditional sources of, you know, bank and direct lenders. You have your junior capital providers and then you have the equity firms, you know, all of which have their own sets of criteria and kind of underwriting their investments. But today we're going to kind of generalize a bit and bucket them according to these categories. You know, I'm not going to read through all these bullet points. We covered some of the general sentiment among lenders a couple of panels back. But I think a couple of other notable anecdotes here, you know, I think we're also hearing that, you know, perhaps the lenders are getting just a little bit more flexible on certain covenants. But, you know, quite frankly, we're also hearing that the treatment that you get from your bank is going to be really a function of your relationship with them. So it does seem to be very case by case from the bank's perspective. Again, pricing is up and that seems to make sense, right? Because on top of the banks having to assess typical business and portfolio risk, the banks have to deal with, you know, volatile uncertain policy risk as well. You know, for example, just exactly what Tori covered. How exactly do these loans get forgiven? Like, what is the mechanism? Because quite frankly, the banks, they're not going to be the ones that are left pulling the bag here. A couple of other notable points is that, you know, there's direct lenders as well, which are kind of non-bank lenders. And they've raised just large sums of investable private debt capital over the last decade. And they're essentially filling in the gap left behind by the traditional bank guys. And it tends to be pretty in line to just marginally more expensive than traditional bank debt, but not nearly as expensive as junior debt or equity capital, which actually leads us into the next financing option available, which is junior capital. Or in other words, you know, securities that fall behind or are junior to senior debt. This junior capital, it's more expensive. It's typically a combination of debt and equity-like instruments, you know, targeting, call it a, you know, I said 7% to 15%. Quite frankly, 7% is pretty low. And it's probably a little bit closer to that 15% mark. It's a good source of capital, you know, particularly in more of a transactional scenario where the capital structure needs to be rounded out just a little bit with that last slug of financing. But again, it's expensive, and you definitely want to dig into that cash flow model and illustrate some various scenarios. And lastly, you know, that brings us to the private equity universe, most expensive type of capital. And, you know, I'm sure we've all heard about them or we've dealt with them directly or indirectly. And the fact is, you know, private equity, like the private credit funds, they've amassed just record amounts of dry powder over the last decade. And that investable capital either has to be deployed and put to work or has to be returned. And, you know, we generally, we do see private equity being just a bit more opportunistic in nature. With lenders tightening, it's forcing the private equity groups to use a much more conservative capital structure. And that really means a much larger equity check if they want to effectuate a transaction. And I think the interesting observation right now, right at this moment, is that, you know, there's so much government relief out there, you know, between PPP loans for businesses or stimulus checks for individuals or Fed asset purchases. It is really propping up market prices, which is kind of creating this interesting valuation disconnect in the M&A world where, you know, you've got an active seller and, you know, they're including this COVID-related ad back or adjustment. But we're noticing that buyers are, they're not really exactly willing to wholeheartedly accept that ad back. So you kind of end up in a stalemate where, okay, the sellers are saying, fine, I'll just wait it out. I'll write it out. I've got PPP dollars anyway. So, hence, you got a bunch of deals on hold. And I'll kind of illustrate that a little bit later in the presentation. But, you know, I think one more anecdote. You know, we've got a client right now where the private equity firm, they really, really like our client. They like the management team. They like the asset. And when you find a match like that, the equity firms actually, they can and they will capitalize the transactions with all or mostly equity and just figure out the refinancing later when the credit markets come back to life. And that's what's happening in this situation. It's a nine-figure check, all equity dollars, no financing. So it can happen. I would say it's more the exception than the rule, but it does happen. So, you know, I think, like every private equity conversation we had included this aspect of, you know, being hyper-focused on, you know, the balance sheet hoarding cash on capital management. So I think really our, we encourage, you know, all the numerous non-sponsor-backed companies out there. If the professional money managers are highly, highly focused on this, you know, we really encourage the private companies, like gain control of your finances, your operations. It's a choppy market and really have a firm understanding of that cash flow model. And lastly here, you know, there's really no one-size-fits-all solution. You know, every business, every situation is a little bit different and the type of capital you want to attract is going to depend on what your goal is. This slide really just is meant to illustrate possible solutions based on what your objective is. So, look, if it's just a simple, I need to finance a piece of equipment, you know, call your bank. You know, but if you're looking for something a little more complex, you know, you want to realize liquidity or you want to bring on a partner and grow the business, that's more complicated. It's a lengthy process and something that we can get into in a different segment. Okay, so moving to kind of, you know, transaction activity. From an M&A perspective, on the left-hand side of the page, look, you know, deal volume, pretty clearly it's decreased when you compare year-to-date versus year-to-date. Call it roughly 17%. But a really nice run-up in median deal value, that green line. You know, on the right-hand side of the page, you know, obviously not all companies trade for 12 times as the composite data across all industries. But more interesting is the fact that banks are pretty well capitalized in this cycle versus the 2007 cycle. And that leads us to believe that, you know, I think lending and transactions is going to snap back rather sharply. But once we get on the other side of this pandemic, but also in combination with that foreseeably low interest rate environment that we talked about, I think it's setting us up for, again, that kind of 09, 10, 11 scenario where the market is kind of coming back, businesses are back online, and credit availability, their interest rates are low. And so I think once we get on the other side of it, that's up for debate, is when, you know, we're setting ourselves up to kind of retest higher highs. You know, on this slide, again, a little more so focused on industrial-type businesses, but it's using various S&P indices to just give you a sense of where we are at in terms of relative valuation. You know, multiples, pretty healthy pre-recession. The recession comes, everybody takes their hits. But as you can see, over the last decade, we've had a pretty nice run-up in valuation. And at the bottom of the page, that table, what you can see is that even with the volatility in the market, that May 2020 average, we're still healthily above recession levels. And, you know, quite frankly, as you compare it to year-to-date, we're pretty in line, not too crazy of variance here. So, again, I think a part of this is the market is being propped up by all of this monetary and fiscal policy release that's out there. This slide really just meant to illustrate that valuation, it's really, it's an art supported by science, right? There are numerous factors that influence valuation, and this is kind of where we really step in, right? We size it all up, evaluate the strength of each business characteristic and opportunity, and really determine when and how to play each hand in the negotiation. And quite frankly, this is really just more relevant from the perspective of junior capital and equity capital versus, you know, traditional senior bank debt. This page, just to give you a sense of kind of M&A volume by a few different industrial sectors, clearly there's been a pretty significant decrease in transaction activity this year. But quite frankly, if you were to measure this against 2019 versus 2018, you'd see something similar except maybe one or two more green areas and a couple of yellows. Overall, M&A activity was down last year anyway. Interestingly enough, heavy equipment activity is actually up this year, but don't get super excited, that 37%, as you can see at the bottom right of the page, we're working off a pretty low base of numbers, right? There were eight deals this period last year, 11 this year, hence it gives you your 37%. So encouraging nonetheless, though, I think. This next page kind of breaking out just year-to-date activity by various U.S. regions. You know, I think with the exception of a couple of data points, it's fairly in line, in line distribution of M&A activity across the regions. And the more interesting thing would be to see this graphic updated through the end of the year as various states and regions set their own guidelines on how they phase the reopening of businesses. It would be interesting to see the impact of how that phasing happens by region. So, you know, we also figured it might be helpful to give you all just a sense of what our clients in our specific project pipeline are saying as it relates to their capital objectives. This is just a sample of some of the projects our practice is working through. And as you can see, we're experiencing situations of all sorts of different dynamics. You know, going into the list, you know, we've got a couple of construction projects which you'd think would be – wouldn't be performing very well, but these deals have been in the works for some time now and they're on track to close. You know, we've got a consumer company with a heavy kind of e-commerce mix and consumers are poor at home. They're buying online now. So their business is doing well. In the middle of the spectrum, there are projects with healthy businesses, but the timing is off due to restricted travel or the calendars with counterparties. And so what we're doing there is just more behind-the-scenes work, right, and just making sure the investment materials are up to date. We're refining the financial model and the projections. You know, we're preparing the data room and just generally fast-tracking elements of the process so that when we are on the other side of this, we're ready to sprint. And then finally, on the other end of the spectrum, you know, projects that are on hold indefinitely. But again, it's not just because of business deterioration that that is happening, but it can also be because business is booming. You know, we've got a manufacturer of cleaning products as a client, and they're working around the clock. They're producing rubbing alcohol and hand sanitizer, and you really can't make enough of that stuff right now. So just to give you a little bit of a flavor for what we're working on, and, you know, I think we're coming up to the last page here on my section, and to wrap it all up, you know, I think the first print on Q1 GDP came out around 4.8%. That'll probably get revised, and I think the consensus is that it probably is a little bit worse than that, but we'll see. You know, companies are providing very little forward guidance, but I think the expectation is that Q2 is going to show an even sharper contraction on GDP as the full impacts of the economic shutdown are realized. And again, generally speaking, I think, you know, the equipment dealers we've talked to noted a somewhat break-even April, the first full month of lockdown. You know, most people mentioned a pretty strong backlog going into the year, but they've pretty much worked through it, sitting here in May, and the new orders are looking a little bit light. So, you know, we think this phased opening of businesses as we continue into Q2 and into Q3, but the data starts getting a little bit better beginning in Q3, but really, it's not effectively reported to the market until early Q4, when the economy is firing up again and really perhaps into 2021 before all cylinders are firing. So, there's a lot of debate right now about the depth and duration of this contraction. It's just something that we're all going to have to kind of keep an eye out for, and you guys, I'm sure, are looking at your backlogs and kind of determining the same thing. So, moving on, you know, lending and transactions, again, we expect that to dry up for the next quarter to two quarters. That's going to create some interim valuation issues that disconnect that we talked about. And then as a final remark, again, this pandemic, it's very uneven across sectors. Every situation is different, and whether it's for purposes of a capital transaction or just shining a spotlight on cash flow management, the common thread among all the businesses and management teams that we've talked to in this environment, this choppy environment, again, hyper-focus, hyper-attention on capital structure, cash flow management, working capital, and just generally the strength of your balance sheet. So, with that, I'll pass it over to Chris, who can talk through some of the specific tools and indicators and analyses to kind of help you through these kind of crazy times. Thank you, Andrew, and thank you, everyone, for having me and having us. Today, I really want to talk about cash flow management, but also symptoms of challenging times, not only for the COVID situation, which most people talk about, but also for just in general. And with that said, my objective today is really to learn the signs and symptoms, forming different methods to resolve and manage complex challenges, really to look at stability, profitability, but also how can this be of assistance to get you where you need to go and to help you with whatever the end game is, whether that's a transaction, whether that is a re-finance, re-capitalize, or realignment. So, the different discussion topics, as I have up there, definition of restructuring, advantages, example benefits, categories of corporate restructuring, two benefits, and then wrapping them up. So, restructuring defined, basically reorganization of a company for greater efficiency and profitability, stabilization. What does stabilization look like? There's a lot of forms of stabilization. And whatever stage you and your company are in, and realignment, it doesn't have to necessarily be the dire straits. It could be how do I realign what I'm looking at going forward in the near-term and long-term to really be in a position to maximize that value for all stakeholders. So, what does the enterprise look like? Why should you exist? What are the advantages? What are the strengths? What are the weaknesses and opportunities? What are the threats? To looking at your balance sheet and saying, do I have the right capital structure? Am I over levered? Can I take on some more capital? What does that capital look like? Is it debt? Is it equity? Is it a combination? Is it junior type, either debt or equity, as Andrew mentioned? But really, it's looking at how do you change the relationships and different components of your organization? How do you make it look more efficient? How do you make it more streamlined, profitable? So, that really dives into the operations, the legal, the ownership, financial aspects to create more positive trends and elements. So, it's not only financial, but it's operational. And so, we look at both those because they do come together and they do work together to get the end results. So, looking at this, obviously, cash flow management is a fantastic tool for monitoring how you're doing, not only daily, but weekly, monthly, quarterly, annually, and longer out than that. So, it's looking from the top down of what cash collections are coming in, where those sources come from, your expenses down to, you know, do you have any capital expenditures? Do you have any capital that needs to be satisfied? For instance, the debt, you know, what does that look like? How can you realign yourselves with the principal and interest or interest or however that looks, you know, if it's a working capital line, you know, how can you better manage that tool with things like a 13-week cash flow, with things like, you know, different forecasting mechanisms, you know, whether it's a true, you know, three-statement forecasting mechanism and how does the cash and accrual work together to get you more definable overview of your company and better management tools. So, kind of for the, you know, understanding services that are offered, you know, kind of how you deal with the corporate restructuring, so typical services that we look at, you know, the typical restructuring and turnaround services, cash flow management, you know, kind of harp on that, reshaping the business model, different revenue sources, cost structures, you know, is your margin in line with what you think it should be, you know, are you truly making the money that you are capable of, you know, are there expenses that can be, you know, either reutilized elsewhere, allocated elsewhere or truly just downsized to make it more efficient and stable. You know, systems and balance sheet restructuring, kind of talked about that a little bit before in the sense that, you know, you need to look at your capital structure and is it the right capital structure for you and your company, but is it the right capital structure going forward if the new normal is down even significantly from your base case scenario. So it's looking at those scenarios and saying, hey, you know, if there's another blip that happens, if there's a situation that this is the new normal, which is different from the pre-COVID scenario normal, you know, how do you manage through that and what opportunities exist. And, you know, I think there are different options here and I'll kind of get into that a little bit later in the presentation, but, you know, there are tools that seem like they're bad, the connotations are bad, but sometimes, you know, the structure, the strategy behind it, you know, in a process like bankruptcy or other state court methods that you look at and, you know, if you have issues with, you know, some of your stakeholders and you're not able to resolve it, even with outside assistance, you know, using the tools for everybody to kind of go to their corner. So there's positives and negatives for that. So, you know, when I say financial reporting, you know, it's really looking internally and saying, you know, are my financials, are the way I'm reporting it, the way they come from, you know, the start to the finish, are they accurate, are they definable, and are they being done timely, and who's doing that in the most efficient way. You know, process and technology review and implementation kind of goes along with that and you really need to look at, you know, do your systems talk, how are you managing through that, and is that the most effective and efficient method. Strategy and organization. What is the strategy? What's the business plan? You know, how do you look at that from a business plan perspective and say, hey, maybe I need to realign, maybe I need to relook at my strategy, maybe I should shut down, mothball some operations, start up, get into new operations. It's really looking at that in a definable level. Corporate finance, enterprise risk. Enterprise risk is obviously a big portion of going forward. What is your enterprise value now? And not only externally on evaluation, but internally, what does that look like? You have typical practitioner experience, the obvious experience in industry, human capital resources. I mean, what level do you have, what level do you want, how can outside help you in that, which is not always a bad thing. You know, as far as being experienced in complex financial reporting and operational issues, you know, it is, I think, and seen in my experience that somebody that not only understands the financial aspects, but where it comes from in the operational side, and marrying those two together can really help achieve not only stability, but where you want to go goal-wise. I'll let you kind of look through the rest of those. So areas of focus within restructuring. And there's different areas of focus, and there's more, you know, outside of this. But these are really where we think kind of the foundation is in looking at this. So typical restructuring and turnaround. The connotation may seem, you know, towards the negative side, but it's not necessarily a negative thing, and it's not always geared for, you know, a truly distressed situation. It can be geared towards a strategic growth situation. You know, how do you do this? How do you properly manage and plan for situations in growth scenarios? So parting with management, build and implement, restructuring, plan initiatives, KPIs, Key Performance Index, indicators, monthly dashboards, even daily dashboards, 13-week cash flow, you know, as I had mentioned before, forecasting, budgets, interim management. You know, sometimes there is a need, you know, for interim management, whether it's the interim CEO, CFO, COO, sometimes the chief restructuring officer, operating partner. And what that can really look like is helping with the financial planning, forecasting, management, operational, and capital planning, too, to really help resolve certain issues and get you also to a more permanent, stable situation. Strategic consultation, I mean, you're looking at growth strategy initiatives, capital planning kind of pops up everywhere. Market share acquisition, you know, how do you look at acquiring versus, you know, starting your own or internally, you know, starting up some division? You know, what are the positives and negatives of each? Crisis management. In crisis management, and I'll get a little bit more into it later in the presentation, but crisis management is definitely one where, you know, outside assistance can take out the emotional aspects of transformation plans, what you need to transform to. Service improvement, once again, lets you kind of read that, but there can be a lot more of these components, but we feel that, you know, these are kind of the highlights of each one of these. Restructuring indicators, I mean, once again, you know, not necessarily is every restructuring situation a bad situation. Sometimes it's needed. Sometimes there's cash flow issues, margins can change, lower than the industry average. Sometimes there's cyclical natures of industries, which is more the facing unfavorable market conditions, need additional resources, you know, need help from a third party, an emotional third party, but also, you know, if you don't want to take on that capital initiative to acquire additional resources, whether that's human, whether that's, you know, other types of resources, this is a way for a short term to look into it and utilize people that do have experience and understanding. You know, interruptions impacted by a disaster, I think this probably, COVID goes under the line of that, and, you know, this is obviously something that doesn't happen real time or even, you know, within a 10-year, 20-year, 30-year cycle. How do you handle this? How do you look at other options? How do you look at the near term versus the long term? And how do you handle adverse conditions of the business? You know, in some industries, some need to restart because they've been dormant for a period of time now. You know, what does that look like? How does other industries affect your current industry? What if you can't obtain traditional financing? You know, what are the other options out there? And I think Andrew talked and hit on those points. And what if a succession plan is needed, you know, what are the options there? So it's really the business planning of that as well. Examples of benefits, I mean, strategic alternatives, you know, modification of capital terms, modification of the business plan or creation of the business plan, pricing, you know, assessment of supply chain, you know, what does that look like? How is it affected by the current status? How will that be affected going forward? Capital availability, liquidity options and opportunities, you know, that you can look at the crux of it through the cash flow planning, you know. And so the cash flow tool, the 13-week cash flow initially gives you that tool to look out further, you know, and not necessarily say, oh, man, you know, I've got people calling today. I'm just going to delve out that. By the end of the week, you're out of cash. So it's really giving that a longer-term view, but it's also giving you a plan to help things and understand where you are, where you want to be, but it's actual versus, you know, budgeted. So each week, you want to do that and see where you are and adjust based on that. And the next, you know, couple of topics go under that. So categories of corporate restructuring, there's four categories here and, you know, additional slides will kind of go over each one, but, you know, this is kind of how we look at it. So, you know, financial operational performance, strategic realignment, this is realignment with your business plan or updating your business plan. This is a situation where there's not any forced movement or threat of, you know, forcing to any other process or shutdown at that level. This is really where you're looking at your company saying, can I be more efficient, can I be more profitable? So you are already stable, but you think there's opportunity here to look at your business and time to look at your business and realign based on that and, you know, maybe reassess what the goals are in the short term and the long term. Crisis management, there's a lot of things that come into crisis management, but, you know, in tough decisions, tough situations, situations can be COVID, situations can be other. Shutdown of other industries and availability for, you know, access to things, you know, new norms. So it's really overall evaluation too, I mean, how do you look at not only what you have from an asset base, but what can others look at that as and what is the demand? But making those tough decisions and taking the unemotional aspect out of it or the emotional aspect out of it and giving definable opportunities and options. Positioning for a capital raise or M&A transaction, you know, Andrew talked on the capital raise aspect, but, you know, there's a lot of things that go into it, not only a capital raise, but a potential transaction and a lot of processes and procedures that you can really look at and outside help can really come in from a third party perspective and say, hey, you know, this is what people need to see, this is how they need to see it. Or maybe there's a failed attempt for an acquisition or capital raise. And so, you know, it's understanding what internally needs to be done to get you to that level so that can occur if that is the goal. So and then the last is the stress restructure reorganization. I mean, a lot of, you know, this is the doom and gloom scenario. What do I do? How do I, you know, stop what's coming or do you stop what's coming? And so it's looking at, you know, things like bankruptcy, things like, you know, consensual foreclosure or, you know, benefit of the creditors or, you know, how do I reorganize in one of those processes, whether it's the bankruptcy federal court or the state courts, and to look at, you know, what is that strategy to reorganize and how do I do it? So this is really more into the first one, the financial and operational realignment. You know, the challenge, there's lots of challenges. And there's lots of solutions to this, but it's really looking at your internal structure and having other eyes look into the internal structure and saying what works, what doesn't work, you know, how do I increase, decrease things and, you know, do I have the proper capital levels, do I have the proper personnel, do I have the proper resources to operate my business? And if I do, how do I do it more efficiently? So, you know, solution tools, analysis of organizational structure, creation analysis, 14-week cash flow, which and then can go into, you know, the forecasting of, you know, the three statements. So you got profit, loss, balance sheet, and cash flows going forward, and creating those models to where you can manage, and it's more understanding of, you know, hey, where do I want to be, where have I been in a more definable time frame? So, you know, there's tension in business management. We kind of talked on earlier. You know, there's tension. And there could be tension between not only the debtors and creditors, so the debtor being the company and the creditors being, let's say, for example, the banks or another third party that has lent you money. You know, maybe there's tension with the vendors, you know, maybe you strung out those accounts in order to keep operations going. So it's how do you make a definable plan and stick by that plan? So what can work, and what's, you know, what's realistic, and will they work with you? You know, the next thing is when your liquidity drops, you know, how do you plan for that? How do you work around that? What are my options? And inability to make an informed sound decision, I mean, that really is kind of the crux, you know. How can you make the decisions? How can you have someone else kind of step in and help you look at those? And sometimes take on some of those tough challenges. So providing data analysis, third party perspective, you know, plans, reducing your plans, sometimes it's mediation, sometimes it's reviewing and assessing what you currently have and where you want to go. And there's a lot more in-depth knowledge into it, but really having a hands-on, you know, boots on the crown kind of approach to saying, look, you know, we're here with you. We'd love to help. You know, how can we help? What can we do? But here's some tools, here's some opportunities we see. Here's some weaknesses we see as well. Positioning for a capital raise and M&A transaction, this once again, you know, you're kind of looking at you need capital, or you need to sell the business, or you want to sell the business. Whether that's, you know, something that's being forced or that's something that's not being forced, you know, what are those opportunities that exist? And realizing that, you know, that needs to happen either in a short period or longer period, or even just looking at, you know, is that plausible? And what options are there? And sometimes it's both. You know, maybe I look at capital raise, maybe I look at a transaction, sale of part or whole of the business, or some assets just to release some stress and get some liquidity in. So it's really looking at, you know, that process of due diligence, you know, how do you coordinate? How do you look for the internal flows and processes, but also what information is being given? Is it accurate? Is it timely? And can you definably talk to, you know, what those metrics are? And as most of these, it's reviewing the business plan. So that's really kind of what it comes down to. The stress restructure, reorganization, I mean, you know, this is something that's more forced. This is something that, you know, there are issues and there's not really definable options or plausible options, if that makes sense. So it's looking at, you know, is there opportunity to strategically slow things down when you're kind of, you know, backs up against the wall? So what does that look like? Development and implementation of cash management strategies, I mean, we do harp on that. We do look at it. Some people do already have that, but, you know, when they get into crunches, you know, sometimes going outside of the plan happens, and then retooling of the plan needs to be looked at. But what are those options? We do help with, you know, situations where, you know, you do need to get into a process like bankruptcy. So kind of follow, you know, lead you through that process. What does that look like? How does that look? And then timely and accurately responses, not only to due diligence, but to every stakeholder. I mean, that is key. That is critical in tough situations, but in good situations, communication is key and timely and accurate communication. Who can benefit? You know, there are so many opportunities in the past slides and what I have talked about, but so many people, so many companies, so many industries, everybody can benefit from this. And looking, you know, from the outside in, you know, obviously there are things that it may take a little bit of time to understand a company because a company is a living, breathing operation and every company is different, even if they are in the same industry, even if they are competitors or working together. So in conclusion, and I will kind of let Tori and Andrew talk as well, but cash flow is key. And, you know, looking at that, especially in tough times, understanding and defining where you want to be, where you have been, and where you are going. And there are challenges, positive and negative, and looking at, you know, the true value of what that looks like and planning for the future. With that? Yeah. Thanks, Chris. And thanks, Andrew. I think, you know, certainly it all kind of starts and ends with cash flows and certainly in these crazy times right now, it is just an increased emphasis on this. There is some great information in all of these slides. And Chris, if you can go to the next slide, I think we have our contact information on here. And just to anyone on the call, you know, feel free to reach out to us. We are here to help. If you have questions on this or just want to, you know, bounce things off of us, feel free to reach out to any one of us. Liz, I don't know if any questions have come through on the chat box during the presentation. We do have a couple minutes left. No, not yet. So if anybody does have a question in the next minute or so here, you can submit via that chat box in the lower left-hand part of your screen. But if not, Tori, Chris, Andrew, thank you so much again this morning for joining us and for your presentation. Thank you. Yeah, thanks. Thank you. Thanks for having us. Thank you. Thanks for having us. Yeah, I don't see any coming through. But again, Tori, Chris, and Andrew's information is up there on the screen. So if you do have any questions, feel free to send it on over. And thanks again, guys, and we'll talk to you soon. Thank you very much. Thanks a lot, Liz. Thank you. Thank you. Thanks, everybody.

cash flow management

corporate restructuring

challenging times

hyper-focus

capital management

balance sheet

volatile market environment

tools and analyses

cash flows