Assessing the Project
Nearly every assignment begins with a quantitative and qualitative analysis of the current status: (a) where the company or real estate project is today with attention to near-term finances/cash flow; and (b) where the company is strategically that includes an analysis of the legal and competitive issues facing management.
The Goals of Each Project
The goals of the assignments can normally be organized also into one of three general categories whether the assignment is an operating company or real estate project: (1) turning around a financially troubled entity, (2) resolving a dispute (either between creditors and an owner(s) or among owners), or (3) if the entity cannot be successfully revived or the activities of the company are found to be in violation of State or Federal laws.
Working with Management: Providing Cash Controls
Mosier & Company is frequently called upon to work with existing management to resolve a financial crisis. Often the engagement involves taking financial control of the company. This has a dual benefit:
1. Utilizing expertise, experience, contacts and intimate knowledge of the business/industry sector provided by existing management while providing the oversight of a cost-conscious turnaround specialist; and
2. Providing creditors (and/or disputing parties) with a neutral, independent accounting. This approach is best when existing management still desires to see the company through the crisis but has lost credibility with creditors because of mounting unpaid bills, defaults, and an increasing number of failed promises.
In these instances, Mosier & Company can be viewed as a auxiliary power unit to re-energize management and to keep it tightly focused on the reality of the situation from a cash perspective.
In other instances, Mosier & Company has been asked to replace management either by the Court, creditors or shareholders in order to take full operational and financial control of a company, real estate project. This approach offers the advantage of a clean sweep, a fresh start and the absence of alternative agendas to turn around the business. This approach is appropriate when the credibility gap between management and creditors is perceived to be too wide for reconciliation, or if there are strong allegations of serious wrong-doing by the existing management.
One of the strengths at Mosier & Company is a strong controller/administrative arm to track the cash, collect receivables and pay bills. Mosier & Company typically manages one to three hundred bank accounts at any one point in time, including timely account reconciliation and posting that goes with each account. We use the latest in computer software, and where a business is tied to its proprietary software, we frequently use it to provide continuity in the reporting process. The banking activity is generally converted into cash basis financial statements including income statements, liquidation or current value balance sheets and statement of cash flows. Financial status reports are available nearly anytime; monthly status reports are typically filed with the Court and the parties (depending on the requirements of the case). Mosier & Company procedures are reviewed annually to ensure compliance with generally accepted accounting practices.
With a combination of fiduciary experience and accounting expertise, Mosier & Company has been called upon in most cases by the Court and/or the parties to prepare an accounting of past events from a neutral perspective & a clear view of past financial activity with an experienced fiduciary perspective. In some instances, the Courts have designated Mosier & Company as the Court’s Expert Witness.