Michael E. Jacoby, CTP, CCM, CMC

Managing Director and Shareholder
Years with Phoenix: 16
Years of Turnaround Experience: 17
Office location: Philadelphia, PA

Michael Jacoby is a Managing Director and Shareholder at Phoenix, and is a skilled financial executive with extensive operating, turnaround and commercial banking experience. Mr. Jacoby has served in advisory capacities as well as interim management positions for more than 130 Phoenix clients in a variety of industries. Mr. Jacoby has also been instrumental in assisting numerous clients with their financing and divestiture needs.

Specific areas of expertise for Mr. Jacoby 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. Mr. Jacoby 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 and 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, Jacoby developed a plan that maximized the value of the Company’s finished goods inventory, and began downsizing the Company. Under Jacoby’s leadership, Phoenix also assumed control of the Company’s cash management and introduced a renewed focus on collecting receivables while minimizing disbursements. Jacoby’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. Jacoby 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 emailable gift certificates. During this 10-month engagement, Jacoby 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, Jacoby 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. Jacoby managed more than 300 employees in the Meter Reading, Customer Accounting and Customer Support Departments and revitalized the credit and collection functions. Jacoby’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 and Beverage
• General Bldg. Construction
• Health Clubs
• Information Technology
• Machinery

• Marketing and Incentives
• Measurement and Instrumentation
• Medical Products
• Metal Products
• Oil and Petroleum Products
• Paper Products
• Personal Care Products
• Pharmaceuticals
• Printing
• Private Equity Fund
• Retailing
• Technology
• Utility

Phoenix Capital Resources Experience

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

Selected Capital Advisory Transactions

Served as financial advisor and managed 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

As interim CFO, Jacoby 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 for its e-commerce client

As interim CFO of an early stage technology company, Jacoby 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

As interim CEO of a health care company, Jacoby structured, negotiated and closed the sale of assets in more than a dozen transactions under §363 of the Bankruptcy Code

Advised 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, Mr. Jacoby 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

Mr. Jacoby 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. Mr. Jacoby 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.