Case Study: Regulatory & Compliance Support
Background
The assets of OldCo (national transportation company with revenues of ~$185million) were acquired by NewCo in a foreclosure sale, triggering licensing issues nationwide related to gaming, weapons, transportation and security guard licensing. NewCo’s CRO retained David Maginsky to identify and resolve immediate licensing concerns, and to develop internal processes for ongoing compliance-related activities. Because NewCo was a combination of three non-integrated companies, the licensing functions were only periodically staffed, were outdated, and the company was grossly non-compliant. Moreover, NewCo was incurring tens of thousands of dollars monthly in legal fees to address licensing concerns triggered by the change of owners.
Process
David and his team took immediate steps to identify and force rank the most pressing licensing issues, meeting with company management and assigning a temporary resource to assist with the development of a compliance program, complete with calendar functionality. The team created “cover sheets” which outlined key information for all of the 200+ licensing jurisdictions. Moreover, David was able to leverage years of regulatory, compliance and licensing experience to initiate key relationships with licensors. Following the initial work, the company used a part time resource to oversee ongoing compliance and licensing renewals, as well as new licensing jurisdictions. This approach took under 90 days, and did not involve buying a single software program, hiring additional permanent staff, or incurring any ongoing fees.
Result
In a short period of time NewCo was able to completely scrub its legacy compliance issues and had identified ongoing work that could be staffed by NewCo in-house. Notably, the a publicly-traded armored car company which ultimately acquired NewCo incorporated this identical methodology into its internal processes post-acquisition.
NewCo’s former CRO had this to say about Well Advised’s licensing efforts:
“David and his team’s approach provided much needed guidance for our compliance efforts. We could begin to focus our attention on pressing restructuring efforts, and invest dollars spent on outside law firms in more profitable areas. This is directly attributable to the insight, leadership and work performed by Well Advised.”