Sues and Angart
New Avenues to Independence
Situation Encountered Upon Engagement
New Avenues to Independence is a non-profit human services organization dedicated to enhancing the lives of mentally disabled individuals residing in Northeast Ohio. In 2001, the organization was in default with its bank lender, had negative EBITDA and required its bank lender’s support to fund its turnaround. The organization had difficulty in providing accurate and timely financial statements, the board was dysfunctional and most of its core businesses were unprofitable.
Sues was hired in 2001 to turn the organization around, manage cash, and fix various financial issues. Angart was then retained in 2002 to continue to implement the turnaround started by Sues, serving initially as interim COO and later being elected President of the Board of Directors.
Major Actions Taken by Sues & Angart
1. Immediately got control over the cash situation. A weekly cash flow forecast and disbursement management process was put in place.
2. Costs were reduced and revenue enhanced significantly, via operational performance measurements, increased reimbursement rates, various headcount
reductions, and expense reductions.
3. A forbearance agreement was obtained from the bank. More importantly, Sues and Angart were able to obtain for the agency four short-term payroll loans from
4. Designed an operational performance measurement system to monitor and address hours, overtime and billability.
5. Developed and implemented a comprehensive, bottom up, budget/ budgeting process with actual to budget variance analysis.
6. Eliminated unprofitable lines of business/ services.
7. Increased fund raising activities.
8. Replaced the agency’s controller with a capable CFO.
Key Results Obtained by Sues & Angart
1. Refinanced the company out of forbearance to conventional financing with another lender.
2. Increased net income from a loss of $300K in 2001 to positive $800K in 2003.
3. New Avenues now serves over 1,000 mentally disabled clients.