United Masonry of Virginia
Role: Restructure Advisory
United Masonry of Virginia (“UMIV”) had operations in Washington DC, as well as Alexandria and Manassas, VA. Faced with mounting losses and increased pressure from its secured lender, Mr. Smith negotiated several forbearance agreements which allowed for the time necessary to shrink the size of the business, including the sale of select real estate assets and the closing of the ‘DC office, ultimately relocating to Alexandria, VA.
$40mm revenue masonry sub-contractor located in the Washington DC and Virginia area. UMIV was comprised of four (4) distinct entities, three (3) op-cos and one (1) shared services enterprise. After three (3) years of consecutive losses, Mr. Smith was retained at the “request” of the secured lender to assist. Within several weeks, Mr. Smith had redesigned the liquidity management process, as well as existing “WIP” reports to better track individual project profitability. Bonding capacity, which had recently been lost, was re-established along with credit terms with several critical suppliers. The three (3) op-cos were merged into two (2) and a plan has been developed to ultimately split the remaining entities into separate stand-alone units post-Covid.
The secured lender was paid out in full in the 4Q2020.