Meet Our Team Michael E. Jacoby
Meet Our Team

Michael E. Jacoby, CTP, CCM, CMC

Senior Managing Director and Shareholder
Years with Phoenix: 25
Years of Turnaround Experience: 26

Michael Jacoby is a Senior Managing Director and Shareholder at Phoenix. He is a skilled financial executive with extensive operating, turnaround, and commercial banking experience. Michael has served in advisory capacities as well as interim management positions for more than 270 Phoenix clients in a variety of industries. He has also been instrumental in assisting numerous clients with their financing and divestiture needs.

Specific areas of expertise for Michael include: crisis management; business strategy; cash flow management, control and forecasting; workflow and project management; business wind downs; customer service improvement; inventory management; business and collateral valuations; and sales/marketing reinvigoration. Michael has extensive experience in family-held, venture-backed, and publicly traded companies. As the head of Phoenix Governmental Services division, he successfully brought the discipline of private sector practices to dozens of governmental and quasi-governmental entities.

PHOENIX MANAGEMENT SERVICES ® EXPERIENCE

  • Turnaround Management
  • Crisis Management
  • Interim Management
  • Operational Assessments
  • Financial Forecasting
  • Cash Management
  • Strategic Advisory
  • Bankruptcy Advisory
  • Liquidation & Business Wind Down
  • Due Diligence Reviews
  • Litigation Support

SELECTED ADVISORY ASSIGNMENTS

  • Developed and managed the orderly wind down and sale of a $70 million manufacturer of tailored men’s clothing and pants. After quickly concluding that a sale of the Company was in the best interest of its shareholder, Michael developed a plan that maximized the value of the Company’s finished goods inventory and began downsizing the Company. Under Michael’s leadership, Phoenix also assumed control of the Company’s cash management and introduced a renewed focus on collecting receivables while minimizing disbursements. Michael’s efforts were instrumental in maintaining the support of the Company’s secured lender, and he spearheaded the negotiations and due diligence process with potential buyers, eventually selling the business to a major industry player. The secured creditor was paid in full, the company avoided bankruptcy, and the vast majority of the guarantor’s collateral was returned, dramatically exceeding everyone’s expectations.
  • Developed the plan and managed the orderly wind down of a $40 million computer and technology integrator and consulting firm after it became apparent that the Company would be unable to obtain the support of its senior lender. Michael was able to avoid a bankruptcy filing and orchestrated the sale of various business segments to three separate purchasers, the sale of inventory to 10 different purchasers, an auction of inventory and fixed assets, the collection of accounts receivable and a negotiated settlement of the shareholders’ guarantee. The return to the senior secured creditor dramatically exceeded the return it would have realized in a forced liquidation or bankruptcy scenario, and the call on the shareholders’ guarantee was minimized.
  • Served as CFO of an aggregator, reseller and transaction processor of physical and email gift certificates. During this 10-month engagement, Michael led the Company to positive cash flow as he introduced and maintained financial discipline and controls at all levels within the organization; dramatically improved the Company’s inventory management process; renegotiated a number of on-line advertising contracts, resulting in $4 million of annualized savings; and negotiated the cancellation of contracts for specialized printing equipment as well as telecommunications and marketing services, resulting in an additional $2 million in annualized savings.
  • Served as CFO of a leading designer, developer, and marketer of desktop solutions for the creation and distribution of broadcast quality video projects. During this 12-month engagement, Michael migrated to a new contract manufacturer that reduced costs while improving quality, restructured several licensing agreements and revamped the incentive compensation program, bringing the Company to a cash flow neutral status.
  • Served as CEO of a provider of durable medical equipment and health and beauty products during its Chapter 11 bankruptcy proceeding.
  • Developed the plan and led the negotiation and ultimate resolution of litigation with the Consumer Product Safety Commission and 7 Class Action litigants surrounding a recall of sprinklers from a publicly traded manufacturer of fire safety sprinklers. The resolution of this recall, combined with a $110 million financing package and operational initiatives, allowed the Company to return to profitability.
  • Served in interim management roles at Philadelphia Gas Works (PGW), the nation’s largest municipally owned gas utility, for 22 months. Michael managed more than 300 employees in the Meter Reading, Customer Accounting, and Customer Support Departments and revitalized the credit and collection functions. Michael’s efforts were a critical element that resulted in a $75 million improvement in PGW’s operating cash flow.

INDUSTRY EXPERIENCE

  • Apparel
  • Automotive
  • Computer Integrators
  • Consumer Products
  • Contractors
  • Convenience Stores
  • E-commerce
  • Electrical Products
  • Food & Beverage
  • General Building Construction
  • Health Clubs
  • Information Technology
  • Machinery
  • Marketing & Incentives
  • Measurement & Instrumentation
  • Medical Products
  • Metal Products
  • Oil & Petroleum Products
  • Paper Products
  • Personal Care Products
  • Pharmaceuticals
  • Printing
  • Private Equity Fund
  • Retailing
  • Technology
  • Utility

CAPITAL ADVISORY EXPERIENCE

  • Refinancing
  • Expansion/Growth Financing
  • Management of §363 Sales Process
  • Divestitures
  • Balance Sheet Restructurings

SELECTED CAPITAL ADVISORY TRANSACTIONS

Michael assumed leadership roles for the following deals:

  • Financial Advisor and Manager of the §363 sales process for a clinical phase pharmaceutical company that resulted in a final sale — seven weeks after filing for bankruptcy — that was 3x the original “stalking horse” bid.
  • Interim CFO for an e-commerce client. He raised $13 million of convertible debt, a $7.5 million line of credit facility from a commercial bank and more than $14 million of new equity.
  • Interim CFO of an early stage technology company. He completed a recapitalization, spun off certain technology into a separate corporation that raised $12 million of new capital, sold off the remaining operating assets to a publicly traded company, and wound down the business outside of bankruptcy.
  • Interim CEO of a healthcare company. He structured, negotiated, and closed the sale of assets in more than a dozen transactions under §363 of the Bankruptcy Code.
  • Advisor for a developer of web-based video scan technology on the sale of the majority of its operating assets to a publicly traded company.
  • Raised $6.5 million of debt for an apparel company.

PRIOR EXPERIENCE

Before joining Phoenix in 1992, Michael worked for PNC Bank in Philadelphia, where he managed a $500 million commercial loan portfolio. He was recruited by senior management to spearhead a newly created unit responsible for restructuring complex transactions with substandard risk classifications.

EDUCATION / AFFILIATIONS

Michael earned a B.S. in Economics from The Wharton School of Finance and a B.A. from the University of Pennsylvania. He earned his M.B.A. in Finance from Temple University. Michael holds the Certified Turnaround Professional (CTP) designation from the Turnaround Management Association, the Certified Cash Manager (CCM) designation from the Association for Financial Professionals and the Certified Management Consultant (CMC) designation from the Institute of Management Consultants. In addition, Mr. Jacoby is registered with FINRA and holds his Series 79 license and is a Fellow of the American College of Bankruptcy.

Mr. Jacoby is a Board member of the Consumer Bankruptcy Assistance Project as well as the Philadelphia Chapter of the Association for Corporate Growth. He is a former Board member of the Philadelphia Chapter of the Turnaround Management Association, and a former Steering Committee member of the Eastern District of Pennsylvania Bankruptcy Conference. He is an active member of the Turnaround Management Association, the American Bankruptcy Institute, the Association for Corporate Growth, the Risk Management Association, the Commercial Finance Association, and the Association for Financial Professionals.

michael e. jacoby

Contact Information

Office Location: Philadelphia
 

Office: (610) 358-4700

Fax: (610) 358-9377

Mobile: (610) 888-9704


Email:
mjacoby@phoenixmanagement.com

vCard: Michael E. Jacoby.vcf