Client Background

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Privately owned construction and real estate group with multiple residential rental properties and several active MCAs (Merchant Cash Advances) taken during a liquidity crunch.  Client was also struggling with 14 residential mortgages with extremely high rates on average of 9.1%.

 

 

The Challenge

 

The owner faced multiple compounding issues:

 

• Overpriced risk management and insurance premiums.

• Vendors started to slow down deliveries due to unpaid invoices.

• MCAs were killing cash flow

• Service, uniforms, and communications contracts were overpriced.

• Overpriced mortgages were really killing profitability.

 

Cash flow was tight, and the business was underperforming relative to its market potential.

 

 

Strategic Interventions Implemented

 

 

• Conducted full financial and legal audit of MCA agreements.

• Negotiated settlements averaging 43% discount on principal owed.

• Refinanced 14 residential mortgages from an average rate of 9.1% to 6.3%.

• Restructured worker’s compensation and umbrella insurance to market benchmarks.

• Consolidated vendor accounts and introduced expense-tracking dashboards.

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Quantified Results

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• Annual interest & MCA payment reduction: $1.42M.

• Freed up $120,000/month in working capital.

• Net profit margin improved from 14% → 24% within 8 months.

 

 

Our team also worked with the owner to identify well qualified candidates for a newly created Operations Manager.  Assisted in the interview process, and the owner will be making a hiring decision soon.                   

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Owner Impact

 

Streamlined systems enhanced efficiency, improved margins, and created a foundation for sustainable scale. With stronger cash flow, the owner has decided to delegate day-to-day management to an experienced Operations Manager, allowing full focus on strategy and expansion.  

 

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Key Takeaways

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• Structured inventory systems and delivery logistics can more than triple field productivity.

• Strategic renegotiation of vendor contracts can unlock hidden profit.

• Sales training for field staff creates immediate revenue lift without additional headcount.

• Operational discipline is the foundation of sustainable profitability.​

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