2. Contents How your company benefits from Tatum Credit Readiness Ready for credit Tatum deliverables Previous successes Who we are Earning your trust and business
3. What is the value of using Tatum before engaging with lender? Faster access to credit Tatum brings focused, intensive effort on obtaining credit facility Tatum knows the local credit market Increased probability of credit approval Tatum’s experienced CFOs know what lenders want Tatum adds independent, objective perspective to future financial performance Tatum preemptively identifies and plans mitigation strategies sustaining covenant compliance
4. Tatum deliverables Bridge expectations between bank & borrower Required business modeling Cash flow Covenant compliance & validation Business plan, MD&A Strategy KPI’s & metrics SWOT analysis Prepared for bank audit &appraisal Loan application tailored to lender requirements
5. Post-closing deliverables Management processes to “stay out of trouble” Robust budgeting & forecasting process Covenant compliance sensitivity modeling Management accountability for achieving plan Timely, accurate closings and financial reports Identify & report KPI performance to management and operational teams
6. Previous successes The Legacy Companies (f/k/a Greenfield World Trade) BSN Gibraltar Metals Campus Management
7. Previous success: The Legacy Companies(f/k/a Greenfield World Trade) Industry: Foodservice Equipment Distribution Loan Type: Asset Based & Cash Flow Amount: $16,500,000 Term: 3 years Background Company was founded 12 years earlier Historically funded from operations and by its founder Beginning to expand rapidly via organic growth (20+% annually) Prior bank had fatigue due to internal issues within the bank Challenges Financial records 3 months behind 4 ERPs (2 platforms) dysfunctional and not integrated Weak processes and controls Rapid growth surpassing Working Capital Tatum Solutions Created a 36 month operating plan and a financing strategy to fund future growth Prepared loan package and prepared the Company’s war room Introduced potential solutions for the ERP evolution through an introduction to Tatum Technology Solutions Negotiated covenants and terms in challenging economic and time sensitive environments Results and Value Created Term sheets offered by 3 financial institutions Enabled company to fund and maintain its organic growth tactics
8. Previous success: BSN Industry: Consumer Products Loan Type: Asset Based Amount: $15,000,000 Term: 3 years Background Market leading developer and marketer of premium sports nutritional supplements Founded in 2001, revenues grew to $134 million in 2009 Inc. Magazine’s list of Fastest Growing Private Companies in 2007 & 2008 Challenges Litigation; defaulted senior debt; negative cash flow; past due vendor payables Tatum Solutions Refinanced senior debt Raised bridge loan to fund litigation settlement Scripted operational turnaround achieving record profits and cash flow Repaid senior debt and bridge loan in 15 months. Results and Value Created Very happy, wealthy shareholders!
9. Previous success: Gibraltar Metals Industry: Industrial Distribution Loan Type: Asset Based Amount: $2,600,000 Term: 2 years Background Company had been purchased out of bankruptcy by a private equity group a year earlier Company was struggling to adapt in a challenging economic environment Prior bank had fatigue and line had onerous and expensive terms Challenges Disproportionate share of old accounts receivables Inventory in four locations around the country with poor accounting controls Never properly capitalized by PEG Expense not in line with lower sales volume Tatum Solutions Restructured organization to achieve positive cash flow Instituted cash controls: rolling 13 week cash forecast, collected on old A/R, structured out vendor payments Credible financial projections, accounting controls, revalued inventory Prepared loan package, negotiated covenants and terms in challenging economic and time sensitive environment Results and Value Created Increased gross margin by 34%, decreased operating expense by 15% and credit line interest expense by 54%. New line of credit within two months, start to finish Enabled company the time and flexibility to finish turnaround strategies
10. Previous success: Campus Management Industry: Software Loan Type: Cash Flow Amount: $4,000,000 Term: 3 Year Revolver Background Company was in its 5th year of development Funded organically due to unusual circumstances preventing VC or PEG financing On the verge of rapid expansion Uneven cash flow cycle, most of cash collected in first two months of fiscal year Challenges Financial records 18 months behind Never audited or reviewed Not properly capitalized Rapid growth outstripping working capital. Tatum Solutions Brought the financial records up to date within weeks Created credible budget for the next twelve months Determined that the ideal loan was a revolver with a yearly cleanup Prepared loan package with reasonably predictable visibility down to individual customers Results and Value Created Term sheets offered by multiple banks Loan refinanced in 2 years Increased company valuation 12-fold from $8 million to closed sale price of just under $100 million 3 years later
11. Who we are Tatum’s Processes Financial, Operational, and Technology expertise Solution/Deliverable focused Consistently exceed expectations Velocity with any size company Tatum’s Assets ~1,000 senior executives 6,000+ clients 100% client satisfaction survey Billions in capital raised for clients Create more value™