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ADVISORS
Ron Turcotte, CTP Managing Partner
Charlie Soule, CTP Senior Managing Director
Jim Ebbert, CTP Managing Director
David Houseman, CPA Managing Director
Lynn Huras Director
Jason Shulick, CPA Director

We Bring the Power to Think Differently and More Creatively.

Knowledge is power. In a distressed situation there are multiple constituents, numerous problems and endless opinions. Knowing the perspective of each constituent, which solution is most viable and how to implement them quickly can be the difference between success and failure. However, before any of this can be addressed there’s an underlying question that must always be answered first: “does the company have a fundamental reason to exist?”. Answering “No” can quickly narrow the options, timeline and ultimately the constituents and their opinions that have a say in the outcome.

However, our experience has shown that more often than not the answer is “Yes”. The key to this foresight is having ample experience in identifying valuable and leverageable characteristics embedded in a history of poor performance. The Cratos team, with its depth of understanding, is able to discern that quicker than most because they are former operators themselves. In addition to analyzing financial data, they can intuitively understand the quality of an operation’s management teams, operating systems, brands, cultures, and processes very quickly.

As a lender or equity owner of a distressed business, before you predetermine the outcome of your situation, give Cratos an opportunity to apply its knowledge and perhaps change your future.

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Benefits

Distressed situations can be intense and uncomfortable. Owners and lenders of businesses that find themselves in distress are looking for direction and viable strategies. They need an advisor who can quickly and accurately assess the situation and execute an agreed upon solution. Cratos has a track record of doing both. Though the Cratos name may be new, the team has been together for years. Our professionals came together as a group of individuals with mutual respect and know-how who share a common set of business principles and ethics. The result is a professional services firm that can deliver a favorable outcome in the most distressed situations.

Latest News

Cratos Advisors Completes Sale of Machine Laboratory’s Anjon Subsidiary

Scottsdale, AZ—Cratos Advisors was engaged as CRO of Machine Laboratory, LLC in November 2015 after the company went through a four-year total revenue decline of 28% and the total loss of a 24% EBITDA margin. Machine Laboratory is an ISO-certified engineering and high-precision manufacturing company with facilities in Lenexa, KS, St. Louis, MO and Jacksonville, FL and they specialize in the engineering, design and high volume manufacturing of critical, ultra-high precision CNC parts for a wide range of markets that includes aerospace, automotive safety, automotive OEM, medical, defense, industrial, oil & gas and power generation. To learn more about Machine Laboratory or Anjon please visit Machlab.com or anjoninc.com.

Cratos Advisors has been pursuing a number of strategies to deal with the parent company’s $75.0M in secured and subordinated debt and the sale of the company’s Anjon, LLC business unit located in Jacksonville, FL is one of the many steps being taken to deal with the debt and liquidity issues. The Anjon facility is FDA registered and provides engineering, design and manufacturing solutions for leading medical device companies. The sale price negotiated by Cratos represents a 50% premium over previous offers and was an all cash asset sale to a private investor with industry experience.

Dennis Gerrard, Cratos’ Managing Director, commented that “the sale of the Anjon business unit represents a positive outcome for all parties; it provided a measurable premium and liquidity to the secured parties, the buyer recognized a genuine value and the work force remains in place.”

 

Cratos Advisors hired to serve as Executive Chairman to Domestic Oil/Gas Drilling Equipment and Services Company

Cratos Advisors was recently engaged to serve as the Executive Chairman of the Board of Directors of a supplier of drilling equipment and services to domestic on-shore rig operators around the U.S.  The private equity backed company is dealing with multiple challenges systemic throughout the industry as a result of ongoing depressed commodity prices and reduced drilling demand.  As Executive Chairman, Cratos plans to negotiate a solution to the company’s current leverage issues, identify and implement further initiatives to drive efficiency through the operations, and develop a go-forward strategy that solidifies its future value proposition.  To learn more, contact Ron Turcotte, Managing Partner at rturcotte@cratosadvisors.com

Cratos Advisors  engaged as Chief Restructuring Officer for a $50 – $100MM revenue private equity owned national casual dining restaurant chain. 

The restaurant chain’s unique brand and growth strategy have created multiple operational issues and an over-leveraged balance sheet.  Cratos has begun a process to improve bottom line performance while simultaneously exploring sale, merger and refinancing opportunities. For more information contact Ron Turcotte, Managing Partner at rturcotte@cratosadvisors.com.

 

 

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Services

Understanding the needs and objectives of the various constituents and defining a scope of work is mission one. Every situation is unique and there needs to be an agreed upon set of expectations regarding deliverables before any work begins.

In all cases a principal will be involved to ensure a consistent level of quality and that the project stays on point. No two situations are alike and the engagement will be directed by a Cratos professional with the appropriate skill set.

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Success Stories

An effective outcome is the principal reason for any engagement. Cratos professionals have long-standing reputations for successfully developing and executing operating plans and financial restructurings that deliver the best possible outcome for all constituents.  Click below to see a variety of engagements where Cratos helped lead distressed companies to success.

 

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