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Case Study

Chief Financial Officer


A transportation company (solid municipal waste hauler) with $100 million in revenue was losing nearly $1.6 million in EBITDA monthly, prompting its private equity owner to seek a turnaround.


Turnaround & Restructuring Initiatives

  • The PE owner had purchased the assets of the company through an Article 9 foreclosure, but the company continued to be unprofitable.

  • The company had aged equipment that experienced deferred maintenance for many years, resulting in high operating expenses and out-of-service issues.

  • Reviewed the financial statements and identified assets not entered as part of the acquisition accounting, increasing equity by $6.8 million.

  • Implemented 13-week cash flow forecasting.

  • Negotiated payment plans with critical vendors for past due balances.

  • Increased terms on trade payables by 30 to 60 days.

  • Negotiated a full-service lease contract for 60 vehicles to provide new equipment and reduce maintenance costs associated with old, high-mileage equipment. 

  • Analyzed fuel procurement processes and found that nearly 70% of fuel purchases were priced at retail cost rather than on a discounted cost-plus basis.

    • Established a plan to reduce fuel costs by negotiating with fuel suppliers and truck stop chains. 

  • Reviewed the workers compensation program and found that over 500 drivers were misclassified as “garbage/refuse collectors” rather than “drivers”. 

  • Restructured accounting classifications to create location P&Ls.

    • Management reviewed controllable P&L performance with local decision-makers. 

  • The information was used to reduce expenses and more fully understand revenue sources.


  • Conserved $4.5 million of cash by negotiating extended payment terms with vendors.

  • Reduced maintenance costs by $1.4 million through converting to a full-service lease model.

  • Reduced fuel expense by $1.2 million through redesigning fuel purchasing processes.

  • Reduced workers compensation expense by $700k over two years through properly classifying drivers.

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