Richard J. Szekelyi, CPA

Managing Director
Years with Phoenix: 2
Years of Turnaround Experience: 18
Office Location: Cleveland, OH

Richard Szekelyi is a Director of Phoenix and manages our Cleveland office. He has over 30 years of executive management and advisory experience working with companies facing challenges resulting from various causes including fast growth, economic downturns, inadequate capitalization, changing industries and operational deficiencies. Mr. Szekelyi’s diverse background includes senior management positions as CEO, COO and CFO for a number of middle-market companies in a variety of industries, and senior positions in private equity, public accounting and commercial banking. In addition he is experienced in acquisitions, crisis management and international business.

Leveraging his experience, Mr. Szekelyi has assisted clients refinance troubled debt, develop and implemented plans to improve operating performance and avoid crisis, managed companies though out-of-court restructurings as well as bankruptcy proceedings, and developed plans to improve competitive positioning. As a principal in a private equity fund and as an advisor, Mr. Szekelyi’s acquisition expertise includes conducting candidate searches, business valuations, raising capital, transaction structuring, negotiations, performance of business and financial due diligence, and management of post-closing integration activities.

Mr. Szekelyi has also served as an expert witness in over 35 cases involving business practices and valuations.

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 and Expert Witness

Selected Advisory Experience

As interim CFO of a manufacturer of outdoor products, Mr. Szekelyi reestablished the Company’s banking relationship after it had been transferred to the workout department. The Company was placed in workout after reporting a material loss and the bank realizing that its loan was under-collateralized. To stabilize the situation, he made improvements to the financial management and reporting functions, including implementing a cost accounting system to more effectively price the Company’s product. To reduce cash requirements Mr. Szekelyi improved the Company’s working capital position through better collection of accounts receivable (specifically those due from Big Box Retailers), and implementing an MRP system to improve inventory management. Lastly, Mr. Szekelyi raised funds to refinance the bank debt and bring fresh equity capital into the Company. The new equity firm retained Mr. Szekelyi as CEO to further develop and implement post-investment strategies. These strategies included improving profit margins by establishing a wholly owned operation in China to produce finished goods and source components for the US operation, and enhancing the Company’s competitive position by executing aggressive product development and branding initiatives.

Served as financial advisor for shareholders of a leather processing company to identify courses of actions to preserve the value represented by the family’s investment in the Company. In carrying out this assignment, Mr. Szekelyi assessed the Company’s competitive position in this changing industry, reviewed its operations for profit improvement opportunities and developed various alternatives such as restructuring of the Company, potential joint ventures and divestitures. Based upon recommendations made, the majority of the Company was sold to a competitor at a significant multiple, monetizing the families’ value in the business.

Following the termination of the President and CFO, Mr. Szekelyi was retained by a US public company to assess the Company’s prospects and advise the board of director on a course of action. The Company operated in the satellite communications industry in China. After determining that the potential of the Chinese business would not justify the amount of additional capital required to turn the operations around, the Board of Directors placed the Company in bankruptcy in an attempt to achieve recovery for the creditors.

Serving as president of a high-end, residential furniture manufacturer, Mr. Szekelyi managed the Company’s turnaround and it’s eventual sale. The owners had made several attempts to divest of the business that failed due to its weak financial performance and history of losses. Mr. Szekelyi curtailed cash flow losses by implementing changes to the marketing and sales programs that previously resulted in the buildup of excess inventory. The Company regained profitability by implementing staff reductions, establishing price increases and making significant changes to sales rep commission structure.

A fast-growing distributor of promotional products was near failure having outgrown the capabilities of its management team, systems and operating procedures. The owners retained Mr. Szekelyi as interim COO to improve the Company’s operating environment. He forensically reestablished the Company’s unpaid accounts receivable collecting significant money owed to the Company, installed a new operating/accounting system, improved procedures and operational practices, and recruited a new general manager and staff with the capabilities to effectively manage the Company.

Mr. Szekelyi served a financial advisor for an office equipment dealership managing the Company through Chapter 11 and a 363 sale resulting in full recovery of the bank debt, eliminating the exposure of the owner’s personal guarantee.

Industry Experience

Banking
Financial Services
Foundries
Manufacturing of Abrasives
Manufacturing of Architectural Products
Manufacturing of Consumer Products
Manufacturing of Residential and Office Furniture
Medical Services

Metal Stamping
Office Equipment Dealerships
Plastic Injection Molding
Professional Services
Radio Program Production and Distribution
Recording Industry
Retail

Phoenix Capital Resources Experience

Recapitalization
Refinancing
Expansion/Growth Financing

Management of 363 Sales Process
Divestitures
Balance Sheet Restructuring

Prior Experience

Prior to joining Phoenix, Mr. Szekelyi was the managing partner of a boutique business and financial advisory firm he founded in 1996. His career includes senior bank management positions, Director of Entrepreneurial Services for Arthur Young & Co., Managing Director of a regional CPA firm, Director of Corporate Development for a private equity fund, and senior management positions for various companies including manufacturers of outdoor products; plastic abrasives; architectural products; as well as a radio programming and syndication company; and an importer of castings.

Education/Affiliations

Mr. Szekelyi holds a Master of Business Administration from Xavier University, a Bachelor degree from Ohio State University and is a graduate of the Stonier School of Banking at Rutgers University. He is currently a member of the American Institute of CPA’s, the Ohio Society of CPA’s, the Business Valuation and Forensic & Litigation Service Section of the AICPA, The Association for Corporate Growth and the Turnaround Management Association.

Contact

(216) 832-6977 cell
(216) 472-8788 fax