Credit Readiness For Borrowers 072110 Jc Edits

Credit Readiness for BorrowersJuly 2010

Contact:NameTitlePhoneEmail

2

Click Here to Add Slide HeadlineClick Here to Add Slide HeadlineClick Here to Add Slide Headline

2

Click Here to Add Slide Headline

Contents

How your company benefits from Tatum Credit ReadinessReady for creditTatum deliverablesPrevious successesWho we areEarning your trust and business

3

Click Here to Add Slide HeadlineClick Here to Add Slide HeadlineClick Here to Add Slide Headline

3

Click Here to Add Slide Headline

What is the value of using Tatum before engaging with lender?

Faster access to creditTatum brings focused, intensive effort on obtaining credit facilityTatum knows the local credit market

Increased probability of credit approvalTatum’s experienced CFOs know what lenders wantTatum adds independent, objective perspective to future financial performanceTatum preemptively identifies and plans mitigation strategies sustaining covenant compliance

4

Click Here to Add Slide HeadlineClick Here to Add Slide HeadlineClick Here to Add Slide Headline

4

Click Here to Add Slide Headline

Tatum deliverables

Bridge expectations between bank & borrowerRequired business modeling

Cash flowCovenant compliance & validation

Business plan, MD&AStrategyKPI’s & metricsSWOT analysis

Prepared for bank audit &appraisalLoan application tailored to lender requirements

5

Click Here to Add Slide HeadlineClick Here to Add Slide HeadlineClick Here to Add Slide Headline

5

Click Here to Add Slide Headline

Post-closing deliverables

Management processes to “stay out of trouble”

Robust budgeting & forecasting processCovenant compliance sensitivity modelingManagement accountability for achieving planTimely, accurate closings and financial reportsIdentify & report KPI performance to management and operational teams

6

Click Here to Add Slide HeadlineClick Here to Add Slide HeadlineClick Here to Add Slide Headline

6

Click Here to Add Slide Headline

Previous successes

The Legacy Companies (f/k/a Greenfield World Trade)BSNGibraltar MetalsCampus Management

7

Click Here to Add Slide HeadlineClick Here to Add Slide HeadlineClick Here to Add Slide Headline

7

Click Here to Add Slide Headline

Previous success: The Legacy Companies(f/k/a Greenfield World Trade)

Industry: Foodservice Equipment Distribution Loan Type: Asset Based & Cash FlowAmount: $16,500,000Term: 3 years

BackgroundCompany was founded 12 years earlierHistorically funded from operations and by its founderBeginning to expand rapidly via organic growth (20+% annually)Prior bank had fatigue due to internal issues within the bank

ChallengesFinancial records 3 months behind4 ERPs (2 platforms) dysfunctional and not integratedWeak processes and controlsRapid growth surpassing Working Capital

Tatum SolutionsCreated a 36 month operating plan and a financing strategy to fund future growthPrepared loan package and prepared the Company’s war roomIntroduced potential solutions for the ERP evolution through an introduction to Tatum Technology SolutionsNegotiated covenants and terms in challenging economic and time sensitive environments

Results and Value CreatedTerm sheets offered by 3 financial institutionsEnabled company to fund and maintain its organic growth tactics

8

Click Here to Add Slide HeadlineClick Here to Add Slide HeadlineClick Here to Add Slide Headline

8

Click Here to Add Slide Headline

Previous success: BSNIndustry: Consumer Products Loan Type: Asset BasedAmount: $15,000,000 Term: 3 years

BackgroundMarket leading developer and marketer of premium sports nutritional supplementsFounded in 2001, revenues grew to $134 million in 2009Inc. Magazine’s list of Fastest Growing Private Companies in 2007 & 2008

ChallengesLitigation; defaulted senior debt; negative cash flow; past due vendor payables

Tatum SolutionsRefinanced senior debtRaised bridge loan to fund litigation settlementScripted operational turnaround achieving record profits and cash flowRepaid senior debt and bridge loan in 15 months.

Results and Value CreatedVery happy, wealthy shareholders!

9

Click Here to Add Slide HeadlineClick Here to Add Slide HeadlineClick Here to Add Slide Headline

9

Click Here to Add Slide Headline

Previous success: Gibraltar Metals

Industry: Industrial Distribution Loan Type: Asset BasedAmount: $2,600,000 Term: 2 years

BackgroundCompany had been purchased out of bankruptcy by a private equity group a year earlierCompany was struggling to adapt in a challenging economic environmentPrior bank had fatigue and line had onerous and expensive terms

ChallengesDisproportionate share of old accounts receivables Inventory in four locations around the country with poor accounting controlsNever properly capitalized by PEGExpense not in line with lower sales volume

Tatum SolutionsRestructured organization to achieve positive cash flowInstituted cash controls: rolling 13 week cash forecast, collected on old A/R, structured out vendor paymentsCredible financial projections, accounting controls, revalued inventoryPrepared loan package, negotiated covenants and terms in challenging economic and time sensitive environment

Results and Value CreatedIncreased 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

Click Here to Add Slide HeadlineClick Here to Add Slide HeadlineClick Here to Add Slide Headline

10

Click Here to Add Slide Headline

Previous success: Campus Management

Industry: Software Loan Type: Cash FlowAmount: $4,000,000 Term: 3 Year Revolver

BackgroundCompany was in its 5th year of developmentFunded organically due to unusual circumstances preventing VC or PEG financingOn the verge of rapid expansionUneven cash flow cycle, most of cash collected in first two months of fiscal year

ChallengesFinancial records 18 months behindNever audited or reviewedNot properly capitalizedRapid growth outstripping working capital.

Tatum SolutionsBrought the financial records up to date within weeksCreated credible budget for the next twelve monthsDetermined that the ideal loan was a revolver with a yearly cleanupPrepared loan package with reasonably predictable visibility down to individual customers

Results and Value CreatedTerm sheets offered by multiple banksLoan refinanced in 2 yearsIncreased company valuation 12-fold from $8 million to closed sale price of just under $100 million 3 years later

11

Click Here to Add Slide HeadlineClick Here to Add Slide HeadlineClick Here to Add Slide Headline

11

Click Here to Add Slide Headline

Who we are

Tatum’s ProcessesFinancial, Operational, and Technology expertiseSolution/Deliverable focusedConsistently exceed expectationsVelocity with any size company

Tatum’s Assets ~1,000 senior executives6,000+ clients100% client satisfaction survey Billions in capital raised for clients Create more value™

12

Click Here to Add Slide HeadlineClick Here to Add Slide HeadlineClick Here to Add Slide Headline

12

Click Here to Add Slide Headline

Earning your trust and business

Next steps1.

2.

3.