Film Editing / Post Production Company Case Study

Film Editing / Post Production Company Case Study

SITUATION: Losses / Not Bankable / Family Disputes

  • $1.5 M losses over last 2 years
  • Bank terminated relationship, no credit facility
  • Intercompany and family-related disputes
  • Subsidiary in Chapter 11, potential loss of ($800,000)

NEED: transition from second generation to third

  • Additional working capital
  • Return to core business
  • Separate from existing intercompany relationship
  • Operational profitability
  • Enhanced revenue acquisition process
  • Rebranding

PROVIDED: 1M bank line at bankable interest rate

  • Equipment line increased by $500,000
  • Action plan to bring company back to profitable
  • Assistance in separating from sister company
  • Created a team approach to manage the company

Value: Profitable within first 4 months

  • Upgraded facilities adding new services
  • Increased revenue 25% in 18 months
  • Eliminated family interaction and dysfunction
  • Positioned for merger, strategic partner association

Potential Savings: The company itself

  • Owner’s retirement base
  • Operational efficiencies of $350,000 per year
  • The hiring of an outside President  – $250,000
  • Additional losses/cash flow related to sister company
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