Financial leadership for an industry built on bonding, backlog, and cash flow timing.
Construction companies face a unique combination of financial pressures — surety relationships, retention receivables, change order disputes, and projects that outlive the company's liquidity. Lighthouse has served as CRO, interim management, and restructuring advisor to general contractors, specialty trades, and infrastructure firms.
In construction, the financial distress is often invisible until it's acute. Bonding capacity erodes, subcontractors accelerate payment demands, and a single project dispute can cascade through the entire operation. We bring the financial discipline to stabilize the situation before options disappear.
Stabilizing cash flow and restructuring debt for a $40M infrastructure contractor.
Challenge: A $40 million provider of road construction and telecommunication infrastructure installations encountered adverse weather conditions that caused job delays which resulted in liquidated damages and other unanticipated expenses. Due to resulting operating losses and liquidity issues, the client defaulted on its loan agreements with its bank. At the bank’s request, the client engaged Lighthouse to stabilize cash flow and find alternative financing.
The Solve: Lighthouse worked with the client to develop weekly and monthly cash flow projections, identify opportunities to reduce expenses and raise liquidity through partial divestitures, and to prepare a recapitalization plan. With cash flow stabilized and a plan in place, the client was able to negotiate a forbearance agreement allowing the time needed complete its recapitalization efforts.
The Outcome: Within ninety days, the client paid of its obligations to the bank through a combination of proceeds from the sale of excess equipment and the refinancing of its credit facilities.
How we approach construction engagements.
1. Cash & Backlog Analysis: We map every active project, retention balance, change order, and payment obligation to build a real-time liquidity picture that accounts for construction's unique cash flow cycles.
2. Surety & Lender Coordination: We engage directly with bonding companies and lenders to protect capacity, negotiate forbearance, and demonstrate a credible path forward.
3. Project Triage: We evaluate which projects to complete, which to negotiate out of, and which to wind down — prioritizing recovery and minimizing exposure.
4. Restructuring or Orderly Exit: We develop and execute a plan — whether that's a workout, recapitalization, sale of profitable divisions, or a disciplined wind-down of unprofitable operations.
The best outcomes start with early action.
The sooner we're at the table, the more options remain available. Reach out for a confidential conversation with our team