IS YOUR ORGANIZATION:
PROFITABLE, AS IT COULD BE?
EFFICIENT, AS IT SHOULD BE?
ENJOYS GOOD BANKING RELATIONS, AS IT MIGHT BE?
IF YOU ANSWERED NO TO ANY OF
THE QUESTIONS ABOVE, I CAN HELP.
PERMIT ME TO INTRODUCE MYSELF. JOBS I’VE DONE.
PROJECTS I’VE MANAGED AND INDUSTRIES I’VE WORKED WITH.
-DON FAYLES
MANAGING PRINCIPAL
Jobs I’ve Done—
‘My first experience getting paid for services rendered was as a 13 yr old shoe shine kid—I’d walk into a bar in NYC with my shoe box strapped over my shoulder and spot a fellow with dusty shoes and walk up to him at the bar [usually having to look up] and say “shine mister”! Had a close rate of 95%.’
Executive Overview
Managing Principal of Organizational Consulting Practice. Former COO, CFO and CEO positions; Director of Strategic and Financial Planning; Chief Marketing and Sales Management Officer; Senior Internal Consultancy Manager; Capital-Formation Advisor; and Mergers-and-Acquisitions Manager.
Career Synopsis
Orchestrated the liquidation or reorganization of several multi-million-dollar companies, including a record company, fiber optics company, textile group, law firm, and non-profit organization. As CFO & COO secured capital infusion for interactive educational/gaming and publishing start-ups. Managed the conversion of all systems, processing, and reporting applications of a regional banking group. Crisis Manager for the collateralization and debt funding of multi-billion dollar commercial mortgage provider/banking institution facing depositor run-off.
Initiatives and Affillations
Executive Member Global Banking Group: Managed multi-billion-dollar fee service-operating group, directing the organization’s efforts to a 14% after-tax return on equity. Changed the marketing and sales culture from a “good time, good fellowship” to a knowledge-based problem solving and opportunity-enhancement environment. Managed acquisitions and mergers maximizing GAP and FASBI parameters. Introduced what was considered at the time the most successful product-marketing program in American banking history. 1994 to present: Independent consulting, including Managing Principal (2001-2012) of Equitable Transitions. Advisor to management firm, focusing on restructuring or dissolving troubled organizations.
Previous Experience
Chief Administrative Officer for First Los Angeles Bank—a multi-billion-dollar regional institution–directing financial and strategic planning, marketing, and MIS applications. Chief Administrative Officer for Financial Corporation of America—a three-billion-dollar commercial mortgage-banking firm directing accounting, loan administration, MIS, marketing, and HR. General Manager/CEO for Security Pacific Non-Credit Services—a four-billion-dollar fee services sales organization—which was a subsidiary of Security Pacific Bank/Holding Company. Chief Administrator, Marketing and Strategic Planning, for the $30 billion Banking Group. Director Mergers/Acquisitions-Internal Consulting for Crown Corporation, a Hawaii based conglomerate
Education/Personal
BS Finance Woodbury University; Graduate School, Loyola University Los Angeles; Adjunct Professor, Graduate Programs, Northrop Institute of Technology and Golden Gate University (Corporate Finance, Managerial Accounting, Marketing-Strategic Planning}; Board Member, Graduate School of Banking, University of Wisconsin. Served in the U.S. Marine Corps.
“now let’s look at industries we have served”
MANUFACTURING
DISTRIBUTION
RESTAURANTS
LAW FIRMS
CAR DEALERSHIPS
RECORDING STUDIOS
INTERNET GAMING
SERVICE ORGANIZATIONS
ADVERTISING AGENCIES
FINANCIAL SERVICES
JOBS I’VE MANAGED
ACCOUNTING SYSTEMS AND PROCESSES
BANKING NEGOTIATIONS AND ADVISORY
CASH FLOW AND
FORENSIC ORGANIZATION ALANALYSIS
STRATEGIC PLANning
TIME AND MOTION AND
PRODUCT COST STANDARDS
SYSTEMS AND DATA PROCESSING METHODS
COST OF SALES INVENTORIES
CASH MANAGEMENT APPLICATIONS
MERGERS & ACQUIZITIONS
{Purchase, Pooling of Interest, Contingency Earn out}
“IN BRIEF—it’s all about product, price, place and promotion”
“We use the term “Accounts Receivable”—such a smooth sounding Phraseology—–But what’s it saying is “you’ve done the work but haven’t been paid”. You may have bought materials for the project. You have worked for free”
“Your material costs run 40% of a job. You bill about $100,000 a month. Your payables are running $120,000. Three months. “Why? A receivable problem [cash flow]? Labor costs running more than the usual 40%.”
“You’re holding back paying employee/employer with-holding. Why?”
“Do you know your fixed costs— your variable expenses? Incremental or marginal costs. You want to expand. Can you take these factors and do a step wide analysis?”
“You’re facing competition or simply want to grow. Do you think you need a price reduction to grow? What can you do with the cost mix [labor, material, G&A] to reduce prices?”
“You own a restaurant. What are your table turns? Do you offer a dinner menu? No! Labor/server costs to high. Really. What is your fixed cost on a daily and hourly basis? Rent. Utilities. Food. Insurance. What do those costs equal say from a 4PM to 9PM basis?”
“If you’re a large company/organization, you can have some “C players”. Get rid of those who scored a D. If you’re a small organization, you can’t carry a “C” player. “B+ is your cut line.”
“Your business makes a product. Does someone in the organization know how to do time and motion analysis for setting cost standards.”
“if any of these themes represent your organization, are thoughts you ponder time to time, I may be able to provide value added”.
Scenarios and Testimonials
A LAW FIRM
“I was the managing partner of a 30-attorney lawfirm in disarray [result of a cap on medical malpractice]. We were one of the largest California firms with concentration in this sector.
As a result of a rapid downsizing our administrative processes were a shambles; Wilshire Blvd facilities twice the needs of our managed down requirements, and our bank was calling our loan[s].”
-Tom H.
Managing Partner
“Within weeks of Retaining Mr. Fayles he had secured a
New banking line of credit while con-currently,
Restoring accounting and financial soundness.
Managed the firm into a “soft landing Reorganization.
Orchestrated a relocation to appropriate size facilities [still on Wilshire] and instituted accurate hourly billing processes [the lifeblood of a law firm].
RESTAURANT FRANCHISE
“I had purchased two restaurant franchises to serve as an
Employment base for my family. A mistake. Over a two-year
horizon I was forced to fire my family members. I was
No better as a manager. We were losing money and the bank
had called our loan of $2million.
-Michael M.
“Mr. Fayles literally resolved our quagmire in three weeks by introducing me to an owner of
several franchises including two of our brands.
We executed a ten-year lease with renewal options and he arranged two banks to extend $1million each
to retire the $2 million bank debt”. “In three weeks.”
WOMEN’S WEAR IMPORTER
“I was the principal and managing partner of an importer of women’s wear clothing. Our sales were in the $15 to $16 million range annually with a 20% operating profit and we had a $7 million line of credit secured by inventory and receivables.
Four trailers of garments were delivered for our spring/summer sales. Cost of Goods Value of $4 million. They were stolen. I retained Don Fayles”
-John V.
Don Fayles and I met the ‘bankers. A short meeting.
Don explained the situation. He offered two proposals. If the bank would permit me to continue to manage the company, we’d convert the $7Million to a ten year Amortized loan at 4% representing a payback
of $8.4 million.
To make this work we needed an Advance of additional $1 million working Capital line.
Over a ten-year time horizon return the company to full
profitability and retire the line on an annual basis
OR
I was prepared to give them the keys and file Insolvency. I believed they would be very fortunate if they could recapture $4+ million of the outstanding debt. They accepted our proposal.
Don admonished me and the bank for allowing inventory insurance to expire.
A MIXED BUSINESS ENTREPRENEAUR
“I was the owner of a retail shop/business as well as a rep
calling on a national merchandising organization.
My product shelf space [effecting sales] had been reduced by the
merchandiser.
And due to street construction renovation, sales
in the retail shop were off. A lot. The bank wanted a “sit down”
-Richard S.
I retained Don Fayles to join me. It was a short meeting. We Led a discussion on how I was going to return
To solvency and any discussion [Led by Don] on filing
a “chapter of any kind” Was premature.
And I didn’t and my businesses are Today Thriving.
THE BEE’JEES & MOTLEY CREW
We were a small recording label. We had been in business several years and had successfully released several titles.
Recordings by the BEEJEEs, MOTLEY-CREW, among others. Recently we had judgements go against us [the recording field is very litigious]. We retained Mr. Fayles to assist in “unraveling” obligations, title ownerships, and in sum, return us
to sound financial footing.
-George w.
“This was the most complex engagement I had ever participated with or represented. Ownership percentages of a Title could be [and always was] Held by numerous parties. Accordingly, selling a title and assuring
Proper income distribution was Challenging.
The engagement turned into a two-year representation horizon.
Mr. Fayles and his team ultimately held a telephonic auction of selected titles to provide capital and Return our enterprise to soundness.
AND LAST
“Is there laughter in your company?
It’s been proven that a company that has
an environment of laughter is 15 to 20
percent more efficient. Proven!!!”
Don Fayles
Managing principal
479-388-1132
No Charge initial Consultation