Turning Around a $300M Global Post-Production Platform in Crisis
A global post-production platform was in freefall: liquidity exhausted, PE owner gone, and no path forward. Areté stepped in as Interim CFO and Independent Board Chairman, stabilized the business, led a lender-driven change of control, and delivered ~$38M in annualized savings in 15 months.
15 Months From Crisis to Stability
A Global Platform in Freefall, With No Clear Path Forward
The company had built a leading post-production platform across picture, sound, and Visual Effects through a series of acquisitions, with facilities spanning North America and Europe. By the time Areté was engaged, that growth had become a liability. Revenue had declined from $458M to $309M in two years. Adj. EBITDA had swung from $48M to ($24M) over the same period. TTM EBITDA at engagement was ($39M).
Industry-wide production slowdowns had gutted project volumes across all divisions. The PE owner had stopped funding. The organization was surviving on short-term lender cash infusions to make payroll. The 2023 audit was still incomplete with the 2024 audit looming.
Operators in the Seat, Not Advisors on the Sideline.
Areté served as Interim CFO and Independent Board Chairman throughout the engagement, both before and after the change of control. We owned the work, not just the recommendations.
Crisis Stabilization
Built a 13-week cash flow forecasting model immediately upon engagement. Drove collections and disbursement optimization. Secured ~$70M in fresh capital from the term lender group to fund operations through the restructuring.
Governance and Change of Control
Provided board-level oversight as independent director and subsequent Board Chairman. Led the full lender-driven change of control as the PE owner exited. Negotiated multiple forbearance amendments extending maturity and forgoing interest. Implemented new governance and capital structures post-takeover.
ABL Refinancing
Managed the full ABL refinancing process without an investment banker. Ran a competitive lender process, negotiated tighter terms including higher advance rates and reduced covenants, and closed the refinancing with an incremental advance to maximize near-term liquidity.
Cost Reset and Non-Core Asset Review
Ran a full cost optimization across labor, software, and facilities. Exited the company’s largest lease. Sold and wound down non-core operations. Separated the sound division into core and non-core assets and provided lenders with objective, data-driven options for a business in rapid decline.
Financial Infrastructure
Introduced a Monthly Operating Report framework, implemented AR/AP tracking, and established a full budgeting and forecasting process. Supported completion of overdue audits. Onboarded permanent FP&A replacements before Areté’s exit.
From ($39M) EBITDA to Above Breakeven, in 15 Months.
A full cost reset across labor, facilities, software, and non-core operations reduced the cost base to align with the business’s actual revenue run rate.
Through restructuring, operational stabilization, and the lender-driven change of control, the platform exited with a viable capital structure and a functioning leadership team.
Term lender capital funded operations through the full restructuring period, allowing the business to stabilize without a fire sale of core assets.
Overdue audits were completed. A Monthly Operating Report framework, budgeting process, and permanent FP&A team were in place before Areté exited. The business was left with the tools to operate independently.