MICHAEL DERVIS

Michael Dervis’ professional experience has been concentrated in the operational and financial management of distressed companies with a focus on secured and unsecured creditor relations, recapitalizations, cash management, financial modeling, identifying operational efficiencies, refinancing, and strategic planning with executive management.

Michael has a Bachelor of Science degree in business administration and has served as Chief Financial Officer, Chief Operational Officer and Interim Chief Financial/Restructuring Officer for various corporations from 1990 to 2000.  During this period he has helped guide companies through crisis situations and restructurings by providing executive management, lenders and equity investors with accurate and timely financial/operational data and forecasts and formulating long-term and short-term strategic plans.  Since November 2000, Michael has worked as a Senior Consultant for Executive Sounding Board Associates, Inc.

Some of Michael’s assignments include:

$100MM DESIGNER AND MANUFACTURER OF COMMERCIAL GRAPHIC ART AND ADVERTISEMENTS.  Michael was engaged to liquidate this company, while in bankruptcy, by working with management, the lender and their consultants, investment bankers and bankruptcy counsel of both parties.   Collaborated daily with the company’s accounting staff and acted as liaison between the company’s management and the lender’s counsel and their consultants.  Because of the tight constraints on the company’s DIP facility, accounting of receipts and disbursements for all of the company’s divisions and subsidiaries, their collateral position, and future cash flows were prepared, monitored and formally presented on a weekly basis to all necessary parties.  Procedures were implemented and staff were assigned to collect all receivables, monitor and report on the sale of furniture, fixtures and equipment, place controls on all disbursements to vendors, while still gaining support from specific vendors, reducing operating costs to maximize recovery for the creditors of the company, and timely preparation, verification and filing of all required bankruptcy reports.

$90MM MANUFACTURER AND IMPORT COMPANY.  Owners and lenders were receiving misleading financial and operational information that did not show that the company was in distress.  Upon appointment as Chief Financial Officer, Michael sorted through the data, worked with executive management, lenders and crisis managers to highlight severe operating and cash flow issues.  The company worked out a plan with their lenders to restructure the company and return it to profitability without having to seek the protection of the bankruptcy courts.

$100MM IMPORTER OF LADIES’ AND MEN’S APPAREL.  At the request of the principal shareholders, Michael conducted an evaluation of the business to determine the viability of the company and its R.O.I. potential.  The determination was that the additional investment required was not warranted because of the size of the investment and the time frame needed to reduce the overhead to appropriate levels.  He managed the company’s relationship with its senior lender during the process, maintained the value of the corporate assets and completed an orderly shutdown and liquidation of the business, optimizing the asset values while compiling with all reporting requirements of the bankruptcy court.

$60MM NATIONALLY CERTIFIED ENVIRONMENTAL SERVICES COMPANY.  The company provides testing of land, air and water for national industrial firms, engineering firms and government agencies through some 20 locations nationwide. This company had an unexpected downturn in earnings due to poor internal controls and sub-standard reporting systems.  The company was unable to service their debt because of lower than expected profits and focus on revenue generation instead of on profits and internal controls.  Michael guided the company’s financial team as it was restructured while the total workforce was reduced.  Internal controls were put on areas such as capital asset purchases, credit and collections, hiring policies and vendor payout schedules.  In addition, the company began analyzing each of its locations individually for the contribution to corporate profits or losses.   New lenders and equity investors were positioned to buy out the old lender, sub-debt facility and equity investors thereby restructuring the debt.  The company has since operated profitably.

$60MM WORLDWIDE SUPPLY CHAIN CONSULTING SERVICE PROVIDER AND INTEGRATOR.  The company began an expansion two years prior to his involvement by developing a new dimension to it’s operational and technology consulting business.  The new dimension was the integration phase of the engagements, where the company purchased, installed and implemented specific machinery and equipment into customer warehouses and was responsible for the functionality of the new installation.  This, combined with the opening of new offices which were fully staffed in three foreign countries and six domestic states without additional financing or equity, caused severe cash flow shortages.  Michael was brought on board to replace the current CFO, assumed his duties, installed a new accounting reporting system that focused on the individual segments of the company, worked with the company’s merger & acquisitions team to produce an investment memorandum, reviewed and maintained reports that gave the lender confidence that cash reports and budgets submitted to them had integrity and helped management make proper decisions.  The merger & acquisitions team was able to propose to management various proposals to add equity to the company.  In addition, the company eliminated unprofitable operations and significantly reduced overhead without reducing their current revenue stream.

Professional experience includes the following industry segments: