CASE STUDY >>
The Davis family was a group of multigenerational farmers in central Idaho. They owned a large cattle ranch that Ma and Pa Davis had passed on to their children to operate.
Unfortunately, the children had different ideas on how to operate the ranch and were not cooperating with each other or their parents. There were multiple individuals and ownership entities involved. Funds between the entities had become intermingled, and it was difficult to assess the true state of finances. The family members ended up suing each other and multiple attorneys were retained to represent the parties involved.
Scythe & Spade Company was appointed by the court to take over operations with the intent to liquidate, winding up the affairs of a dissolved LLC while managing, protecting and preserving the LLC assets.
We brought in new operators and conducted a full analysis of inventory, crops and livestock, equipment, contracts with clients and vendors, accounts, funds on deposit with banks, loans, and lines of credit.
In addition to commingling of accounting funds, inventory records did not match physical counts, and there was evidence of mismanagement and neglect. Cattle and crops were much more fluid for disappearance.
Scythe & Spade also assumed all accounting functions with direct access to all business records. We maintained strict compliance to the court directives to submit timely, monthly reports summarizing the cash flow activities and operation decisions/results for liquidation of assets, lease management, inventory reconciliation, equipment debt retirement. We maintained communication with the court and transitioned through three separate judges who oversaw the case during its tenure.
Once Scythe & Spade was brought up-to-speed on the operations and our management was in place, we were able to operate the ranch with positive cash flow. We sold off 800 head of cattle, worked out equipment leases and sold off inventory and supplies, as well as settled real estate mortgages and obligations.
In this particular case, our professional management approach, tight controls and strict compliance to the court directives was critical; not only for managing the multiple facets of a complex financial situation, but in gaining solid confidence and open communication with the attorneys representing the interested parties.