Case Studies

The Challenge:
TCI was retained by an angel investment fund to lead the sale of a majority stake in a medical device company to a strategic buyer.

The Solution:
TCI quickly grasped the core strengths of the business as well as weaknesses that could be supplemented by approaching strategic investors. By leveraging investment contacts across industries, TCI was able to identify a strong strategic buyer match that strengthened the business while freeing up capital for the angel investors. TCI led the valuation due diligence and handled all deal negotiations. The resulted sale returned over 75% IRR to investors.

The Challenge:
A medical device company was faced with working capital constraints and needed to find an investment partner to alleviate their constraints and help them scale. TCI was brought in to function as fractional CFO, prepare sell side due diligence, solve working capital issues, and find investors.

The Solution:
TCI helped the client to identify creative financing solutions for working capital needs and built out investor due diligence to accelerate fundraising. The TCI team then identified interested investors and closed the round of financing within three months.

The Challenge:
An investor wished to develop a multi-product rail terminal but had a limited understanding of the competitive landscape in the region including its competitors handling capabilities, pricing, and long term competitive advantages.

The Solution:
TCI evaluated the terminal’s competitors by analyzing operations and infrastructure, expenses, rail and highway connections, existing customers, potential customers, rail and truck rates, and storage and handling capabilities to support the investors’ “go” or “no go” decision.

The Challenge:
A wood pellet biomass start-up required a distribution network design to ensure long term cost competitiveness and keep leverage over transportation vendors to support a fixed, multi-year production and export contract.

The Solution:
TCI was engaged to test a series of supply chain network designs for the business and develop a transportation contract negotiations strategy. TCI’s recommendations were implemented reducing shipping costs by over 15%, and accelerating shareholder returns by over $ 1 million annually for 10 years.

The Challenge:
A family-owned, Midwest, short line railroad wished to reacquire a minority stake from a publicly traded company and, in turn, sell a minority, non-control stake to a new investor who could match their plans for growth and operating philosophy.

The Solution:
TCI partnered with the client to determine which type of investor would meet the long term needs of the company. Based on these needs, TCI completed a market valuation and pre-sale due diligence, prepared marketing materials, and identified investors who would make a minority, non-control investment and meet the long term needs of the railroad.

The Challenge:
A small, mid-west short line railroad defaulted on its debt covenants and was required to refinance with its private equity partner or find a new investor in order to support ongoing and expanding operations.

The Solution:
TCI partnered with the client as fractional CFO to re-forecast the business’ potential and, based on this, generated detailed financial forecasts including ongoing forward cash flows. TCI’s analysis convinced the existing investor to accept the proposed negotiated terms, reducing the client’s debt service costs and improving working capital and maintaining an acceptable rate of return for the investor.

The Challenge:
A major U.S. Port wished to apply for a federal grant to expand port rail capacity to accommodate increasing export demands but lacked the internal resources to complete the project and was unsure of the likelihood of success. Outsourcing the application is a costly decision and offers no guarantee of success.

The Solution:
TCI performed a high level cost/benefit analysis to illustrate the Port’s business case, which indicated that the proposal would be considered an excellent investment. The Port decided to invest in grant preparation and TCI managed the project, prepared the grant, and met with US DOT staff to understand the application and decision making process in order to avoid any related pitfalls. The grant was completed on time and under budget and awaits the federal approval process.

The Challenge:
A minority shareholder in a short line railroad had a dispute with the controlling parties and filed a minority oppression case. TCI was engaged to provide expert testimony and business valuation on behalf of the minority owner.

The Solution:
TCI’s fact-based, independent approach to the business valuation and expert witness testimony contributed to the State Court of Appeals’ decision to remove/disqualify the presiding Circuit Judge and appoint a new Judge in the case.