About CSC Capital
Founded in 1992, CSC Capital pioneered a holistic restructuring-based approach to financial advisory services, including turnarounds, mergers and acquisitions, debt and equity financing, and strategy and risk consulting. Since inception, the firm has extended this approach across various industries and sector classes throughout the United States and selectively in Canada and Europe.
Today CSC Capital’s managing directors through its five business groups advise clients in restructuring, assist clients in buying and selling businesses, help clients procure financing in distressed situations, as well as provide clients strategic management consulting and risk management services. The value added and full-spectrum synergistic approach instilled at the firm’s founding remains at the core of CSC Capital’s competitive advantage, which has enabled the firm to provide superior and consistent industry-leading returns on investment.
CSC Capital’s proprietary A through Z restructuring program which was designed to do “first things first” mirrors and integrates a reformatted financial structure with the human organizational structure. This holistic restructuring approach ensures that all aspects of financial, management and operational decision-making are made with complete strategic confidence.
And while there is nothing new in considering strategy, structure and management in a complete holistic framework, the firm's holistic application of its five core services creating synergistic value for clients is an innovative and strikingly new concept. Moreover by grounding this holistic and synergistically interplay of the firm's services on its restructuring-based approach to client solutions is what clearly separates CSC Capital from its middle-market competitors as well as the giant consultancies with offices worldwide.
The firm's client services can also be understood as old-fashioned "nut and bolts" business common sense as applied to sometimes complex financial advisory solutions and corporate revitalization. Instead of creating as well as adding more complexity into a client situation or solution as is often the case with many in the industry, CSC Capital simplifies and clarifies the process and the solutions for any client problem or opportunity. In fact, the past century of enterprise, from hugely successful industry consolidations to unwise acquisitions leading to fraud and corruption, to operating a profitable fifth generation single-location company, demonstrates one basic fact: the difference between a well-managed business and a not-so-well-managed business is the degree of attention that management pays to the language of business - the accounting numbers.
Therefore, at its base the firm's services concern themselves with the reporting and accuracy of numbers, how much variation is tolerated between budget and actual results, how are forecasts arrived and variations treated, who is accountable, all within a lean functional organizational structure supported by an obtainable corporate strategy. Whether designing and implementing a corporate restructuring program, conducting a mergers and acquisitions transaction, arranging financing solutions or providing specific business improvement or risk management techniques, the accounting numbers create and connect the current situation of a business with its strategic direction and ultimately its success.
The CSC Capital difference is the synergy of the firm's focused client services that defines corporate excellence in absolute terms no matter the business objective; always have and always will.
CSC Capital's Principles
CSC Capital was founded to transform organizations into strategically sound and market driven enterprises, thus protecting themselves against economic recession, competitive factors, the lack of meaningful information, and the hazards associated with rapid expansion and growth. But how? Since before the Industrial Revolution, large corporations and small businesses have found it to their advantage to be administrated by competent leaders and managers in functionally structured and efficiently managed vertical hierarchies. And it is no difference today as businesses adapt to the current information and technology Revolution.
Thus CSC Capital believes in functionally structured and efficiently managed organizations. No advancement in technology or theoretical or academic claim, and no combination of economic factors can change the realities of good management, sound organization or human nature. Without a formal vertical structure as well as financial accountability imposed upon competent managers chaos always follows. CSC Capital does not believe in overly loose management theories that lack or downplay strict financial accountability, nor does the firm define corporate downsizing as synonymous with long term recovery or horizontal based process driven structures that unravel cost controls and accountability. In fact the long-term success of any merger, acquisition or financing arrangements can be traced to the fundamentals of sound management, proper organization and an informative financial structure.
CSC Capital believes that management must manage. To acquire a competitor or to arrange financing is very different from managing the acquisition strategy or correctly disbursing needed funds into a distressed corporation. Therefore in order for management to efficiently and strategically manage complex operations the firm maintains that a formal though "living" organizational structure must be linked to a formal though "proactive" financial control and budgetary measurement system. Such a system gives management the correct tools to manage, pin-points waste and thus poor management, rewards and measures based upon high productivity, performance and quality, and focuses management on profit-oriented revenue generating opportunities.
CSC Capital's Approach
CSC Capital's primary goal since its founding has been to achieve high rates of return for its clients. In pursuit of this goal the firm has completed over one-hundred company-wide corporate restructurings and dozens more related corporate advisory and consulting engagements in a wide variety of industries. Yet despite the firm's pioneering restructuring-based approach to client services, CSC Capital has also advised specifically on numerous mergers and acquisitions in traditional and mature industries, arranged both debt and equity financing in distressed and non-distressed situations, provided risk management solutions and conducted financial investigations, and has set new standards for financial modeling creativity, pay-for-performance packages and executive search, as well as innovative profit and cost center designs.
CSC Capital started life as a management consulting firm specializing in corporate restructuring. And while the firm has underwent several changes and expansion of services over the years one thing has remained constant: the firm's holistic restructuring program. However for CSC Capital success in corporate restructuring, mergers and acquisitions, debt and equity financing, management consulting, risk management and business investigative services depends upon not only on the deliverance of targeted corporate development solutions and change but also implementing and institutionalizing such changes into the corporate culture. Notwithstanding, the firm's affiliated specializations of mergers and acquisitions, financing, management consulting, and risk advisory services, CSC Capital follows a formal restructuring approach that often intermingles with the firm's other services. The following eight components generally outline the firm's approach to client services.
CSC Capital has developed a unique set of skills and resources that positions the firm to identify restructuring, mergers and acquisitions, financing and consulting opportunities. Chief among them is the firm's preeminent reputation as a restructuring and turnaround specialist.
CSC Capital evaluates dozens of potential engagements and transactions annually. Once an opportunity has been identified by the firm's Industry Practices Division, the firm employs a number of strategies to secure an assignment. Whenever possible select Managing Directors work with owners, officers and top management of a prospect client on an exclusive basis to ensure them that CSC Capital services will benefit all stakeholders. A less preferred route is the challenge of persuading decision-makers of a distressed company that despite the concerns of a painful restructuring or sale of assets or the company itself, the benefits will far outweigh any immediate sacrifices.
Critical to consummating a client engagement or transaction is CSC Capital's ability to analyze, access and evaluate potential assignments often without having to visit the client's corporation itself. These capabilities enable the firm to secure an agreement for services with large multi-faceted enterprises that few would be able to accomplish from a remote location.
Organizational and Financial Restructuring
CSC Capital's creativity in restructuring companies through its customer focus profit center approach itself unlocks immense value. Coupled with the financial restructuring that emulates the organizational structure the firm has been able to, regardless of current prevailing market conditions or the current financial position of the company, engineer the most advantageous restructurings in the market place. No financial advisory firm or restructuring practice to our knowledge links the organizational chart to the financial statements for maximum corporate productivity, profitability and value.
Training and/or Attracting Strong Management
CSC Capital believes that every company should be run by the best professional managers available – individuals whose full time and effort are focused on creating value and profits from a given business. In most situations a strong operating management team comes from within the client's company though needing in many cases extensive training in management accounting. From the budget process to pricing, purchasing, sales and warehouse management, knowledge of both company operations and the accounting numbers is the difference between corporate success and failure. The firm takes the training and implementation of the client's management teams of upmost importance.
However, if it has become necessary to supplement select current management personnel; the firm's long-standing relationships and track record of the executive search and/or investigative process enhanced by CSC Capital's proven as well as lucrative incentive compensation packages have enabled the firm to attract the highest caliber of executive and management talent for its client companies. Further, during the transition process, if necessary, CSC Capital has numerous times provided the interim management services capable of providing a seamless transition from restructuring to recovery to new management.
Management and Employee Incentives
Since its founding, CSC Capital has been an innovator in its work to structure management incentives, sales commissions and company-wide compensation plans that align the interests of owners, management and employees. A requirement of all compensation plans is that they are calculated off the contribution margin of a given profit center and that all profit centers have been allocated the correct amount of overhead burden. With sometimes as much a 5% net profit threshold, the firm's incentive plans extend throughout the entire organization, including cost centers, and in of themselves create increased productivity and profits, enhance revenues while creating a more motivated and efficient workforce.
Financial and Human Resource Oversight
Because the most important asset in any corporation is the people, CSC Capital believes it is vitally important that each organization has in place a rigorous infrastructure which delineates and monitors all positions within the corporate hierarchy. The objective is to install a discipline that translates into predicable and superior results. First and foremost is the creation of a budgetary system that compares actual results to management forecasts, by each profit and cost center, by each product line, and by each expense line item; holding each manager directly accountable to his/her results. Second, is the creation of job descriptions and an evaluation system that mirrors both the job description as well as the organizational structure thereby providing the utmost in manager and employee work results and accountability.
An important focus for CSC Capital in corporate oversight is cash management; where the firm plays a principal role helping client companies determine how they can operate most efficiently and best find and channel resources to serve both specific crisis situations as well as strategic objectives. From vendor management and collections to account payables and purchasing guidelines, the positive results from these interventions are both immediate and for the long term.
Pursuing Mergers, Acquisitions and Spin Offs
CSC Capital's client companies have been very opportunistic in both buying and selling of businesses and assets. The firm serves as a critical advisor and catalyst, offering its vast experience in executing such transactions. The acquisitions and divestitures of the firm's client companies have enabled these organizations to expand and solidify their market positions, thereby focusing on their core competencies thus increasing their financial and operational flexibility. Moreover, the centerpiece of the firm's mergers and acquisition services is to strategically locate a willing seller or buyer, conduct the due diligence, and drive the transaction until closing.
Arranging Debt and Equity Financing and Debt Restructuring
CSC Capital continually seeks to optimize the capital structure of each client company, taking advantage of financing opportunities to obtain lower cost funds, lower debt burdens and added corporate flexibility. With the firm's assistance distressed clients have been able to access alternative sources of capital. At the appropriate time, CSC Capital presents its program and the results thereof to either debt or equity financing sources. Depending on the nature of the situation the firm approaches large financial institutions or private equity firms, regional credit facilities, venture capital or angel investors. In each situation, the firm convinces them of the new funding opportunities that now exist in the newly restructured company. Advising and negotiating credit financing opportunities and/or restructuring the existing debt of client companies often translates into superior results, many times offering the client optimal financing terms.
Maximizing Corporate Value
The predetermined duration of a CSC Capital engagement or completed transaction is typically between three months and one year, depending upon the size, scope and/or complexity of the client company's situation. The firm has always been successful in generating increased corporate value immediately or shortly after the start of an engagement. This is due to CSC Capital's ability to turn large amounts of non-turning or unnecessary assets into cash, collecting aged account receivables and bad debt, and by setting up the system that prevents such unwanted circumstances from happening henceforth. Over the longer term, say one to three years, the firm's track record is to provide shareholders with a doubling of both earnings and market capitalization. It is creation of corporate value that is CSC Capital's most important economic function.
Taken together, it is the experience, creativity and resources that CSC Capital brings to bear on all of its activities that sets the firm apart – from assignment origination to restructuring to the oversight of the financial and human capital, and finally to the formulation and execution of its strategy for realizing the value created. The firm is proud that, given the willingness of client ownership to accept change, that CSC Capital has never been unsuccessful.
CSC Capital's Structure
The organizational structure of CSC Capital is denoted a "client-oriented structure." This is due to the fact that the principal aim and architectural design of internal reporting mechanisms as well as information flow, personnel development and compensation are toward the satisfied client. As a financial advisory firm, CSC Capital provides its services through the knowledge and talent of its professional team of experts. Opportunities for client satisfaction are enhanced by an internal structure the leverages professional expertise within the firm.
CSC Capital client services are provided by the firm's Client Advisory Division through its five business advisory groups:
CSC Capital Corporate Restructuring
Summit Mergers & Acquisitions
NWX Financial Group
Compass Park Consulting Partners
The business advisory groups used separately or in combination leverages the firm's synergistic model of client services. CSC Capital Corporate Restructuring, the firm's traditional application of restructuring is today as always the central core group of the firm. Summit Mergers & Acquisitions, NWX Financial Group, Compass Park Consulting Partners and Clearwater Advisors are affiliated business groups that provide services independently or when needed may be called upon to assist CSC Capital Corporate Restructuring for specific expertise. These affiliates operate as separate advisory groups.
The four affiliated business groups were created to enhance the firm's traditional of services through focusing professional expertise in specialized disciplines. Stated differently, clients who desire advisory expertise in mergers and acquisitions, debt & equity financing, strategy and management consulting, or risk management and business investigative services will receive the focused dedication and professional expertise to accomplish the most difficult of these transactions and/or engagements. But even for clients receiving these specific services, the firm's expertise in restructuring is a bonus. This goes back to the firm's original belief that "corporate restructuring" is the foundation of all business solutions.
This synergistic leveraging of client services separates CSC Capital from all competitors in the middle-market financial advisory industry and is at the heart of the firm's client-oriented structure. The principal reason, through years of experience, is that providing a specific advisory service such as in acquisitions or the arranging of financing is sometimes impossible without a restructuring in progress. Typically this occurs in distressed situations, where the client wants a loan – period, or the client who wants to sell his/her company – period. However, in both situations sometimes a loan or sale is predicated upon improving the fundamentals of the business first.
Therefore, CSC Capital's five business advisory groups though separate, are strategically linked by design of purpose – client satisfaction. Further since all five advisory groups report to the firm's top management and depend upon the same administrative support resources, there is organizational consistency in areas such as quality assurance, procedures, information and methodology, professional development, technical and staff resources, and executive decision support.
Besides the Client Advisory Division, the functional structure of CSC Capital includes the Industry Practices Division, and the Administration Division. In a parallel way the firm's global reach agenda is working in unison with the divisions. The Industry Practices Division conducts client development and industry research and the Administration Division provides administrative, technical and marketing support to the Client Advisory Division whose primary purpose, as mentioned above, is the delivery of client services. The leadership of the firm consist of a four member executive committee who is ultimately accountable for all client relations and services.
CSC Capital's Ethics
CSC Capital contributes its success, in large part, to our culture and values. The firm has created a single integrated culture that rewards advisory discipline, creativity, determination and patience as well as encourages the sharing of information, resources and expertise and best practices across our business advisory groups. In essence all advisory groups interact as one firm and adhere to the same ethical code. The bedrock of the firm's culture is a unique spirit of teamwork that is oriented toward one goal – client satisfaction. Our founder established the firm in 1992 based on this belief. This same core value is still ingrained in the firm today. Not only does all personnel understand this, but it is from this premise that all personnel are hired, evaluated and rewarded.
CSC Capital was founded to provide the client exemplary service, and this is also exhibited in the firm's fee and expense structure. On client engagements that are not rewarded on success fees, the firm has always billed on a pre-determined and agreed upon weekly basis, not on an hourly basis. Nor have we ever asked for up-front retainers or payments in advance. We also adhere to the same weekly and expense agreement throughout an engagement, no matter how many personnel are assigned and no matter how long the engagement takes. This provides the client with "peace of mind," throughout an engagement regarding our weekly invoices; thus no surprises or hidden fee increases.
Moreover, since founding CSC Capital we have never asked a prospect restructuring or consulting client to sign a formal binding contract for services over a pre-established timeframe. Instead a Standard Letter of Agreement for client services serves as the official terms and conditions of an engagement. For mergers and acquisitions and financing clients an exclusive listing or finders-fee success agreement for a specified period of time is necessary for agreement but again with no up-front retainer. For asset recovery and collection services we charge a percentage of the liquidated or recovered value.
To ensure the quality of CSC Capital services we will only devote highly experienced and dedicated professionals to every engagement or transaction regardless of the client's organizational size or complexity. And unlike many top tier management consulting and corporate advisory firms, we do not hire newly graduated business majors, who basically get hands-on business and advisory experience at the cost of paying clients. The firm prides itself on the way we do business. Our reputation is CSC Capital's greatest asset, and our experienced professionals since 1992 have all contributed to maintaining the firm's stellar industry reputation. There is no doubt that our clients have preferred to deal with seasoned business professionals who have spent years investing their time and energy into their specialties and who committed themselves to adhere to the highest ethical and quality standards.
CSC Capital adheres rigorously to the following Code of Ethical and Professional Standards:
Fees and Expenses
CSC Capital Milestones
1992 - Founding of CSC Capital.
1993 - Development of Holistic Restructuring Program. First turnaround as Interim CEO.
1995 - Application of proprietary restructuring program to the Building Materials Industry. First international client’s in Canada and UK.
1996 - Performance pay system created for restructuring. First industry convention Seminar.
1997- First multi-state turnaround of a over $ 500 million client as Interim CEO.
1998 - Creation of innovative acquisition and financing client situations. Conducted first buyout.
1999 - Development of industry consolidation platform strategy inclusive of seller-financing arrangements.
2000 - First three-day conference as the sole presenter at anindustry convention.
2001 - First European financing banking tour for U.S. clients. First turnaround using overseas finance.
2002 - Article written by CEO stating that a housing and credit crisis was looming.
2004 - First conference offered exclusively by the firm. Restructured three back-to-back leading building supply companies (2004-06) because of 2002 article.
2005 - Moved headquarters from Colvin Corporate Centre in Salem, Ore to Bend, Ore. Started virtual global operations.
2007 - Highest grossing year of the firm in client fees w/assignments across four time zones. Created separate M&A, Finance, and consulting groups.
2008 - Conducted successful turnaround of third largest buying group in the U.S. as Interim CEO.
2009 - Conducted successful turnaround of the largest building material supplier in SW Florida.
2011 - Founding of Summit M&A, NWX Financial Group, and Compass Park Consulting Partners as affiliated groups.
2012 - Launched first global Region (China-Twain). Initiated first global Managing Director recruitment effort.
2013 - First webinar to major SW Healthcare provider. Founded Clearwater Advisors.