Interim CFO Upgrades Finance Function

Construction & Real EstateTurnarounds & Restructuring

170M

Annual Sales

30M

in Debt

Regency Homes, Des Moines Iowa

Challenge

Iowa’s largest homebuilder. $170 million in revenue. $30 million debt. Builds single family homes, townhomes and condos. Sold 958 homes in 2005. 43% drop in sales from 2005 to 2008.

  • The Company was caught in the Great Recession credit squeeze.
  • Its 31 banks wanted a combined historic and projected financial statement for its more than 200 entities, including homebuilding, commercial real estate, land development, commercial contracting, insurance and various other ventures.

Solution

  • MorrisAnderson was hired as interim CFO to provide financial leadership in a financially stressed environment until a permanent CFO could be recruited.
  • MorrisAnderson provided leadership and instilled confidence to the financial function of the company
  • Created a combined 3-year historic and 2-year projected financial statement and cash flow of all 200-plus entities in 4 weeks.
  • Facilitated the materials, agenda, and presentation to 31 banks.
  • Provided independent analysis to the banks and maintained relations with the lenders.
  • Negotiated property refinancing and sales agreements.
  • Successfully recruited a permanent CFO in seven weeks.

Results

  • MorrisAnderson was able to keep the Company and its related entities viable until a permanent CFO could be successfully recruited and transitioned.
  • Despite all the challenges of the environment to recruit a qualified candidate for the job and provide timely and relevant financial information, MorrisAnderson recruited a highly qualified candidate and effectively transitioned the CFO in three weeks.

Contributors