Case Studies — Long Form

The Problem

A healthcare company set out to acquire a manufacturer for approximately $5M. The conventional path required a $500,000 deposit, a $3.5M SBA loan, and a $1M seller note — with every business asset and the full equity in both partners' primary residences liened as collateral.

Traditional Approach

The after-tax cost would have exceeded $9.2M (including state income tax), and the two partners would have personally guaranteed the SBA debt — putting their homes and business at full recourse risk.

Strategy Implemented

CFS restructured the purchase using pre-tax dollars and seller financing — $250,000 down and $75,000 per month until paid, with performance offsets at the end. The structure eliminated the SBA loan, the deposit, and all personal collateral.

The Problem

A real estate investor wanted to unlock value from a fully-leased property worth ~$13.5M (with ~$5M debt) while retaining ownership and receiving most of the proceeds tax-free. Holding the property yielded under 3% — barely keeping up with inflation before taxes.

Traditional Approach

Selling would have cost ~$1.25M in transaction costs plus capital gains taxes, and a 1031 exchange merely defers the liability. Holding meant a de minimis future return.

Strategy Implemented

CFS sold the property for $15M through a simultaneous transaction — $7.5M raised from investors via a convertible debt structure (4% current cash + 4% preferred, plus sale proceeds) and $7.5M in bank financing — paying off the $5M mortgage while the owner retained 20%.

The Problem

A company doing ~$3.5M a year had been bidding jobs below cost to win revenue, eroding all profit. It owed nearly $1M to suppliers and over $1.5M to the IRS for unpaid payroll taxes — and the owner's home and freedom were at risk.

Traditional Approach

Standard advice pointed toward bankruptcy or a distressed sale, which would have wiped out the owner's equity, home, and business.

Strategy Implemented

CFS took on the turnaround: mandated a minimum 33% gross margin on every sale, cut overhead from ~25% to ~12% by operating remotely, and renegotiated payment plans with the IRS and creditors.

The Problem

Southeastern Mechanical Services had two elderly partners — one in his 80s (controlling 51%) and one in his 70s with two sons in the business. Their partnership agreement had no dispute-resolution or buyout provisions, and the 80-year-old feared he would die if he sold.

Traditional Approach

Resolving the deadlock the conventional way would have required multiple valuations, multiple attorneys, heavy expense, and likely a forced sale of a healthy business.

Strategy Implemented

CFS amended and restructured the shareholder agreement so the managing/voting partner retained his office while transferring authority and control to the younger partner — enabling the sons to take over. No bank debt and no cash were required.

The Problem

A sizable Mid-Atlantic law firm struggled with profitability — earnings went to producing partners with no real cost accounting, and the firm extracted only ~33% of each deal. The owner wanted a full exit, but the firm's low margins produced an unattractive valuation.

Traditional Approach

Without restructuring, a standard sale would have left the owner significantly undercompensated relative to the firm's true potential.

Strategy Implemented

CFS raised the effective take rate to 39.6% and increased hourly fees ~20% (still a discount against 40%+ inflation) — no client balked because the lawyers increased deal value beyond their higher fees. The firm then acquired another law firm using no cash and fully deductible earnouts, lifting revenue and net income substantially.