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Andrew Stanhope

astanhope@gfocfo.com

Phone Number: 866-220-4092 x109

Location: Freehold, New Jersey

Years of Experience: 40

Biography: Biography: Andy, a senior financial and strategic planning expert, has served as CFO and COO of financial services firms and finance companies. His expertise includes developing sophisticated financial models, pro forma financials and budgets; creating strategic action plans to enhance growth and profitability and writing related business plans; creating customized systems and applications to manage metadata; and managing due diligence investigations and evaluations of prospective mergers and acquisitions (including review/analysis of tangible/intangible assets, debt covenants and encumbrances).

Andy has served as a senior consultant, providing expert systems design and development, financial modeling, and financial planning and analysis services to small, midsized and global companies. Clients have included Johnson & Johnson, JPMorgan Chase, AmerisourceBergen, Cantor Advisors, and TopKnobs USA.

As Senior Business Consultant to JPMorgan Chase in New York, Andy worked with analysts and developers to create a standalone application that generated customized reports pertaining to human resource utilization and cost for the Private Bank Information Technology Group. As Director of Operations and Finance for At Entertainment Finance International in New York, Andy managed the acquisition and divestiture of portfolio assets including the critical financial analysis and modeling and due diligence functions. Specific responsibilities included development of portfolio acquisition, divestiture and securitization financial models, preparation of quarterly and annual financial statements and servicing reports, asset valuation, review of financial and operating covenants, reporting and loan servicing, and supervision of outside auditors and rating agencies in their review of portfolio performance.

As CFO and Director of Aberlyn Holding Company, Andy managed the portfolio acquisition and divestiture analysis for a $60 million portfolio of asset-backed securities and leases that were collateralized by medical equipment, U.S. patents, and exclusive licenses on U.S. patents. He supervised the acquisition and divestiture of portfolio assets including the critical financial analysis and modeling and due diligence functions. Other responsibilities included development of portfolio acquisition and divestiture models, negotiation of forbearance and restructuring agreements for distressed loans, preparation of monthly, quarterly and annual financial statements and loan servicing reports for international investors, asset valuation, and review of financial and operating covenants.

Prior professional finance experiences included managing corporate finance, M&A analysis, financial modeling, strategic planning, and corporate accounting for Robert A. Stanger & Co., W.R. Grace & Co., and Bowater, Inc.

Successes:

• Cantor Advisors (a New York City Restructuring firm) needed to develop a detailed financial model to assess the financial viability of a struggling corporation having 10 different entities of varying development and profitability. Andy reviewed, analyzed, critiqued, validated and embellished the corporation's financial model. The model included 3 types of monthly historical and projected financial statements for each of the 10 entities: profit and loss, balance sheet, and cash flow statement. The model also included consolidated (all 10 entities combined) schedules of weekly/monthly labor costs, a schedule weekly disbursements of expenses, and weekly/monthly capital expenditures. The 10 entities were classified as either "Core" or "Non-Core" and consolidated into summary financial statements for each classification. Result: The comprehensive financial model enabled Cantor to successfully negotiate new loan terms with the Corporation’s bank lender.

• JPMorgan Chase (JPMC, a Global Banking powerhouse) needed to validate 2006 project budget for Information Technology (IT) department. Andy developed a project planning model which identified invalid budgetary assumptions, e.g. double-booking monthly allocated human resources for any IT projects, resource bookings for discontinued projects, unreasonable monthly fluctuations in project bookings, bookings for terminated resources, etc. Result: 2006 budget was refined and validated ahead of schedule.

• Entertainment Finance needed to assess further investment in a struggling company distributing its record catalog. The multivariate financial model Andy developed forecasted sales revenues, gross margins, ebitda and cash flows under various scenarios including holdback periods and holdback percentages from record distributor, liability repayment schedules for former distributor, time periods to realize former sales levels, record prices and returns. Result: The model revealed unforeseen financial problems prompting Entertainment Finance to sell rather than invest additional capital in the struggling record company, thereby saving millions in potential losses.

• Entertainment Finance needed to determine the aforementioned struggling company’s liability for unpaid artist royalties (originally estimated at over $800,000 representing nearly half the company’s asset value in a sale.) Andy developed a customized royalty liability reporting system covering 5 years of sales and expenses data for about 6,000 songs, 700 record albums, 200 artists, and 600 artist-recording contracts. Result: The recalculated royalty liability of $63,000 was less than 1/10th of the original estimate and facilitated sale of the record catalog.

• Entertainment Finance needed to obtain an investment grade rating for structured finance transactions involving a Library of classic movies and cartoons. Andy managed the development of a statistical model and evaluated net revenues and cash flows under various stress test scenarios for review by Moody’s. The analysis showed that the consistent performance of the Library combined with structural elements of the transaction, supported timely payment of debt service obligations. Result: Moody’s gave the deal an investment grade rating prompting Prudential Investments to purchase the Library for two portfolios.

• A California diagnostic test kit manufacturer needed to reduce its dependence on Medicare receipts and increase revenues from non-governmental sources. Working with the CEO and CFO, Andy helped customize a financial model that calculated impact on sales revenues and gross margins of various non-controllable factors, e.g. Medicare reimbursement rates, growth rates, roll-out timetables for non-governmental business, bad debt ratios. Result: The California manufacturer developed its non-government product line and reduced dependence on Medicare.

• Xplor Corporation (Xplor, a NASDAQ oil and gas company) needed to determine the feasibility of exploiting natural gas wells in West Virginia. Andy developed a multivariate financial model which evaluated investment returns under different natural gas pricing scenarios, exploitation success rates and natural gas production volumes, and variable product costs based on production volumes. The model calculated the effect of industry tax credits on after-tax investment returns. Result: The model showed favorable investment returns under nearly all scenarios which enabled Xplor to sell $5 million of investment interests in the project and thereby mitigate risk of natural gas exploitation.

• Robert A. Stanger & Company, an investment advisory firm, needed to measure effect of deal terms (front-end fees and operating expenses) on investment returns in direct investment programs. Andy helped develop an innovative ratings model that estimated effect of deal terms on investment returns. Result: the firm’s ratings of deal terms/structure became the de-facto industry standard for evaluating deal terms in direct investment programs and were widely used by investment advisors to select direct investments for investment portfolios.

• Bowater Inc., a Fortune 500 manufacturer, needed to measure lost opportunity cost of relatively unprofitable paper grade. Working with senior marketing management, sales professionals, mill management and regional controllers, Andy analyzed related product manufacturing costs and production efficiencies. He then developed a customized model that quantified lost profits. Result: Bowater cancelled a 25-year contract, saving millions annually. Andy then used model results to restructure the pricing matrix for an entire product line that further increased profitability. The increased profitability led to a successful $200 million expansion of the related production facility.

Education:

Andy earned a B.A. degree in Mathematics and Political Science at Brown University and an MBA in Finance and Accounting at Northeastern University.

Areas of Expertise: Financial Modeling and Forecasting, Financial Systems Development and Implementation, Due Diligence Investigation , Valuation of Intangible Properties

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