Case Studies—Telecommunications

Telecommunications Software

An NHB Advisors, Inc. caseteam evaluated the business plan, management and systems of a telecommunications software firm at the invitation of two large equity funds. The client had experienced a decline in EBITDA from $10 to $3 million, and had recently been transferred to workout by its lenders. As a result of its analysis, NHB: (a) recommended changes in the management structure to enhance teamwork and better utilization of management skill sets; (b) prepared financial projections while also providing a clearer understanding of the nuances of software accounting; and (c) recommended additional benchmarks which provided a more timely and clearer picture of the client’s performance. As a result the client was able to arrange an 18-month forbearance agreement with its lenders, which is expected to provide sufficient time for a return to greater profitability or an orderly exit strategy.