[bleep] is gonna change. I do it save jobs. Check you out. And i do it to make money. This the profit. [upbeat music] [truck beeping] watch your back. A. Stein Meat Products is a prime beef wholesale business in brooklyn, new york. For 75 years, theyve been selling Quality Meats to new yorks finest restaurants and butcher shops. Thats beautiful. And shipping their product all over the country. We carry a lot of choice and prime meat. We only carry a highend product. Howard mora. I also need about 20 prime loins. And alan buxbaum. What are you waiting for . Are sons of the original two founders. Together, they now run stein meats. And over the last 18 years, theyve grown their revenue from 4 million to 50 million annually. When our fathers first started, it was much smaller. It really expanded the business. Meat is a competitive business. And sellers like stein work on a very low profit margin. Meats priced like the stock exchange. You sell stuff for pennies a pound over your cost. And even with 50 million in revenue last year, stein is still struggling to make a profit. Um, we still have a balance of 2,300. Last year, stein meat showed a loss of over 400,000. Were losing money. Its been pretty tough over the last couple years. If the losses continue, stein meats will be forced to close its doors in the very near future. Without some major adjustments, 47 stein meats employees will be out of work, and alan and howard will lose everything theyve worked so hard to build. Im scared that this business will close. I dont wanna see this disappear. Its been my whole life. We dont wanna fail. Stein meats sells a great product, and they generate over 50 million of revenue. Im positive with some tweaks, i can find a way to turn a profit. Good morning. Sir, were going to stein meats in brooklyn, please. Good morning, im marcus. Marcus, how are you . Tony. Nice to meet you. Tony, nice to meet you. Nice to meet you. A lot going on this morning. Yeah, theres quite a bit going on. This is when our usual action happens. And wherewhere is all this going . Restaurants, butcher shops, diners. How long have you been here . Ive been here for 24 years. 24, thats it . Yeah, thats it. Oh, my gosh. Can you show me around . Absolutely. But before you go in, you need a hairnet, a hat, and a white coat. Okay. So what do you do here . Im one of the foremen here. Lets head in and check it out. Okay, lets go. Come on in. This is where it happens. Wow. Wow, wow, wow. This is our beef department, all the hanging beef. How about i get howard and alan down here . Theyll really give you a good tour. Marcus is here. Nice meeting you, pleasure. Nice to meet you. You got a nice operation. Thank you. Do you love it . After 40 years, i have to love it. You better love it. I dont have a choice anymore. So are you alan . How are you . Im marcus. Good. How are you, marcus . Nice to meet you, sir. Pleasure to meet you. This is a nice place. Now are you guys brothers . No. Partners. Just partners. Closer than brothers. And are you guys 50 50 partners . 50 50. Our fathers were partners. Okay. They left the empire to us. And so, walk me through the process of how it works. This is the receiving area. We got all our fresh meat through here. Then we also get lamb and veal in this way too. And those cuts will go into the other room next door, where theyll be broken down into subprimals. Theyll be packaged or shipped out as orders. So how much revenue will you do a year . Uh, we should do about 50. 50 million . 50 million. Thats a big business. How big is that electric bill . Uh, about 30 a month. Wow. A big business like this comes with big overhead. How much is your rent . About 32,000 a month. Wow. Theres rent and cooling cost averaging over 60,000 a month. Theres union labor costs. Theres seven delivery trucks. Thats a lot of money being spent. But theres 50 million of revenue coming in, so im a bit baffled by the annual losses. This is almost a 50 million business, how much do you think youll lose this year . About 400,000. How much is inventory at one given time . Probably between 800,000 and 900,000. How much leaves here a day . 150,000 to 200,000. Youre turning your inventory pretty quick. Right. And so do you guys have any debt . Right now our bank is lending us about 3 1 2 million. The fabricating room, where we cut up, make the orders, process the meat. Hey, david, i got that order for wolfgangs. I need 40 short loins as soon as possible. Corey, i need three boxes of our boneless legs of lamb. Whos this guy . Thats frank, our general manager. Come on, we gotta get these trucks out of here. Lets go. He seems to know what hes doing. Yes, he does. Frank. Frank, im marcus. Hey, marcus, how you doing . Both nice to meet you. How long have you been here . Five years. Do you love it . Yeah, its good business. You know, everybodys gotta eat. [chuckles] uhhuh. Do you mind giving me kind of we could walk through, give me kind of a rundown of what goes on here. Well, this is our production room. We fabricate orders. How do you measure the efficiency . Uh, ive never really analyzed it, never thought about it. I just look and see what i can get done in a given day. And so how many pounds do we generate a day . Um do you know that number . No, i dont. So what other things could you guys do here to generate some money . Well, we started a new item. We made the Brooklyn Burger. Its a brandnew item. The conception of it was from some of the prime Meat Products that we dont get the top dollar for, make an excellent hamburger. So it something you sell to butcher shops or restaurants . How does ithow does it work . We sell it to the sports stadiums. Were the official hamburger of the new york yankees, the new york mets. Oh. The Brooklyn Nets. And how does that work . You have, likelike, a Marketing Arrangement or uh, corporate Sponsorship Agreement with the teams. And how much does that cost a year . About 400,000 a year. Oh, wow. 400,000 is a lot of money to spend marketing one product, especially only three locations. Im gonna have to take a look at these contracts and make sure i know what were getting for that. What id like to see is how the Brooklyn Burger is made. Cut the meat here. Now i dont know if you wanted to try cutting a piece of meat. Well, id like to try it. I wanna learn. Ill stand over here, okay . And break it up into what . Three pieces is fine. Just watch your fingers. Aah. [chuckles] its all solid muscle. Brooklyn burgers only accounts for about 1 million in sales. And its sold at three major sports venues as the premium burger. So it could be a great stepping stone for something big, like getting into Grocery Stores around the country. The Brooklyn Burger could be our golden goose. You know, what i love about it is the color. It really looks so fresh. Perfect flavor. [indistinct chatter] oh, it puts the paper and everything. I think the Brooklyn Burger concept is a real winner, with a very efficient manufacturing process. You put that together with the brooklyn name, what a great way to market a product. You remember the lucy show with all the chocolate going by . Holy crap. [laughter] [phone ringing] good morning. Stein. Sure. Whos calling . Look, these guys know meat, and they sell one heck of a product. But theyre a little shaky on the numbers. I wanna head up to accounting and meat the people that actually put the numbers together. Im marcus. Donna. Nice to meet you. How are you, donna . Good. Thank you. What do you do here . Are you in charge . Im the office manager. I oversee the accounts payable, the accounts receivable, enter invoices. So do you have anything to do with accounting . No, howard and alan take care of that, or attempt to, or try to, whatever. So, ill ask howard and alan later, how they handle the books. And how long have you been here . 20 years. Youre the one that contacted me, right, to come here . I am. What was your motivation . It needs a whole overhaul. I mean what are the things that just eat at you . Um, absolutely the receivables. Customers pay late. Theres a lot of money out there. So the money that the customers owe us, those are the receivables . Correct. How much is our total receivables right now . A couple hundred thousand . We have almost 4 million on the streets. Are you kidding me . Business that generates 200,000 a day in sales, 50 million a year, can expect to have a certain amount of receivables. But 4 million in uncollected funds . Thats totally unacceptable. And how much of it is old . 1. 1 million. Is any of it really old . Some could be well over two years old. Youre not gonna see that again. No. Of the 4 million of receivables, 1 million is at risk . Yeah. Okay. All right. Im gonna go chat with them. Thanks, donna. Youre welcome. So i got the receivables list. Theres 4 million of receivables. But i think whats more alarming is of the 4 million, of the money the customers owe us, 1 million of it is over a month old. Both we know that. Thats yourthats the best response you got . Well, a lot of them have been paying those down. But i saw a couple on here that were huge. Like, [bleep] meats, 50,000 . Well, he had a problem with his family. And hes paying medical bills now. [bleep] packing. 117,000 . Hes a little slow, a lot slow. He buys every week. But theyre still a customer of yours . Yes. Why would you still sell to people that owe you that much money . 117,000 this guy owes you. Whew. I dont know if these guys are the nicest guys in the world, or the most irresponsible. Look, i understand trying to help other people. But if they dont take care of themselves, theyre gonna be out of business. There are hundreds of thousands of dollars of receivables that are associated with businesses that are either closed or the accounts are dead. I should apply for a loan with you guys. You wanna know why . I dont ever have to pay it back. Not collecting payment from the customers that buy their product is gonna lead to serious cash flow problems. They have millions of dollars tied up in ioweyous. You cant pay bills with ioweyous. How much do we owe in payables to our vendors . How much is that, approximately . Probably about 2 million. And how much of that is past due, by your definition . Probably about 1 2 million. Ill see you guys in a little bit, okay . Okay. Im shocked at what im seeing in stein. Steins assets consist of less than 1 million of inventory on the floor, and 4 million of receivables, of which 1 million is past due, and maybe not even collectible. Steins total liabilities are made of a 3 1 2 Million Bank Loan that they use to Fund Expenses and make up for receivables that they dont collect, and about 2 million in outstanding payables that are owed to companies they buy meat from. Right now, stein owes more money than it has, by about 1 2 million. Is it scary that oh, absolutely. Ii see the bills, and its like, well, i dont know i dont know how much longer were gonna be here. Do you feel like you guys are pretty close to that . Are you scared about that . I am, because i was selling my house and purchasing another house. And i told my husband, lets not do it now. I was too afraid to do it, just because i didnt wanna not have a paycheck or worry about it. The girls live paycheck to paycheck. Im married. Ive married a long time. I have a husband. Ill be okay. But these girls live paycheck to paycheck. I said, if something happens im like, ones buying a car, and, like, i just wanted to tell her, dont buy the car. Because if something happens, she has two kids, and now she has a car payment. If you cant get a job the situation at stein is far more dire than alan and howard think it is. It doesnt even look like theres any relief in sight. And if i dont get involved, and not only put some money in, but force them to make some cuts, there is no way this business is gonna make it. I know i can help, but its gonna take a lot of changes in order for this business to really make it. Hey, guys. Hello. How are you . Good to see you. So we decided to meet at peter lugers steak house, one of the best steak houses in america, and also one of steins biggest customers. This steak is ridiculous. [chuckles] when you think about credibility, i think being in a place like this i think it says a lot about the quality of your business. But you guys have heard me talk about people, process, and product. I know that theres great people. The producti dont know that ive had a better steak. And im not telling you that because i wanna make you feel good. If i didnt like it, id tell ya. But the last part is that the process is broken. Youre in a competitive business. Its a commodity, very thin margins. If you dont collect the receivables, your business is wildly vulnerable. Your employees, theyre all scared. You know that, right . Do you have a fear that you guys could lose it all . Yes, i do. There are night that i dont sleep. Were in a desperate situation. Im scared that this business will close, after its been a Family Business for over 75 years. We wanna survive. So what is the number that you guys want, and what can i have for it . We were actually discussing a 5 million input into the business. Uhhuh, and whats the share of the business . A 1 3 share. Did you calculate a break . Howd you come up with that . Inot through any math or anything that we did. Obviously. Because the business loses money today. It sells a lot, you just dont make anything. Well, i think that im not doing a deal for less than 50 . I can tell you that right now. Because i think the Business Needs so much lifting and so much capital to dig itself out of a 1 2 million hole and 2 million of payables. If you dont do a deal with somebody, youre gonna own 100 of nothing. My offer is 1 million to provide working capital for the business, and bring the payables into an acceptable range. The percentage that i own will be 50 . [tense music] um coming up. You doing okay . You look a little stressed. I really have a lot of thoughts that i just wanna quit. And later. All these people out here that are scared to buy a car, because theyre scared theyre gonna lose their job, well, they have a reason to be scared. Because this business is two weeks away from closing. If you want to stay on top of your health, one simple thing to do is take the pledge to go and get screened for the cancers that might affect you. So stand up to cancer and take the pledge at getscreenednow. Org it only takes a minute to take care of yourself, and nothing rhymes with org. My offer is 1 million to provide working capital for the business, and bring the payables into an acceptable range. The percentage that i own will be 50 . [tense music] um these guys were actually expecting a bigger offer. I thought my offer was plenty generous. Theyre losing money every month. Theyre 1 2 million in the hole. My paidin capital was gonna solve all those problems. Could we have a minute . Yeah, you can have a minute. If we can get on the right path, all of us will make a lot of money. The way i feel, i mean, we still have a 50 million business. Yes, its poorly run. And thats where we need the direction. Lets see if we can counteroffer. 4 million . So what do you guys think . We decided we would do the deal at 4 million. No. Alan and howard, this is were here. If those receivables and those payables dont start matching up, you will not be in business in the next year. I am not writing a check for more than a million bucks. Do we have a deal . Yeah. Yes. Come here, you big guy. We came from 5 million down to the 1, to be more realistic. Im very comfortable with the Million Dollars, especially with everything that hes going to add to the business. See ya in the morning. Good morning. My name is marcus lemonis. And i fix failing businesses. This business last year did 50 million of business. Unfortunately, we didnt make any money. You guys sell a lot, but theres one thing that you dont do very well. What is that . Collect. Collect money. So last night at dinner, i made a deal with alan and howard. And im putting in a Million Dollars. But you know what they forgot to do last night . They forgot to ask me for my money. Its a theme, but its not funny. Because your paychecks and the rent, all get paid when we collect the money, not when the stuff leaves on the truck. Theres the money. Thank you. Thank you. [applause] from this point forward, im in charge. The first thing were gonna do is fix the accounts receivable process, so that i know for sure what meats coming in and what meats going out. I wanna know how much were selling, how much were collecting, and who owes what. Were gonna start by getting on the phone, and calling these customers that owe us money. We need to be paid. And from now on, when we deliver meat, we need to get paid on time. We are not a bank. We need to improve our operating efficiency, and there will be no more wasteful spending. Were gonna look under every rock and were gonna cut costs. That will free up cash. 50 million is a lot, but its not enough. We have to make more money, cause were gonna change the marketing strategy. Weve invested a lot of money building this Brooklyn Burger brand. Its got a lot of brand value. And were gonna get behind that name. And were gonna try to figure out how to make the Brooklyn Burger work. Were gonna try to get into groceries, and get the value out of what i think is one of the greatest places in this country, which is brooklyn. Guys, now that weve made the deal, i wanna find out how much money we can actually recover. So i wanna get upstairs. I wanna get on those phones with a lot of intensity, and collect some of this money. Okay . All right, lets go to work. [applause] [phone line ringing] manager speaking. Hi, this is donna at stein meat. We still have a balance of 2,300. Well, im sorry, but somebody from billing is gonna have to get back to you. Okay. This is ira from stein. Uh, let me call you back. Bye. Not in. [dial tone beeping] [phone dialing] hes not in . Theres an old balance, 60 days today. I just dont have it right now. [phone chimes] the number youve dialed is not in service. Theyre out of business. [phones beeping] i cant believe how difficult this is. We can hardly get anyone on the phone, let alone collect money. Andy, i have on the balance over 210,000. Ill try to straighten it out. Okay. Is that all right with you . Okay, wait. Youll give me extra checks, or youll come by tomorrow, and i could try to have a check for you for, like, 5 grand. Okay, perfect. Okay. All right, andy, i appreciate it. Bye. Thank you, bye. Look, when youre in this much debt, collecting some money is better than collecting no money. I can give you about half. All right, thanks. Everyone on the team clearly understands the importance of collecting this money, except for frank, who has absolutely no sense of urgency. Hes kind of just hiding in the back office. Hey, frank, can i talk to you for a second . Yes. Why are you the only one not making calls . Should i . You have to chase the money as if its yours, and i dont feel like youre doing that. Okay. So get on the phone and start collecting some money. Okay. All right, thank you. Not a problem. I could get you about 10 grand midweek, if you want. Okay, wonderful. All right. Hello, kumail . Hey. How you doing . This is frank over at stein meat. I was just going over your account. Still a little bit past due. Do you have another check coming out to me . Uh, why dont you check back with in a couple of weeks . Not a problem. Thank you very much. Hey, marcus. You know, we just got through talking about the urgency of those calls. And then im listening to you tell some guy he can pay you in a couple weeks. I need to know that if youre gonna be here, if youre gonna run this business, youre gonna have the same level of intensity as me. You understand that . Yes, i understand what youre saying. The severity of it . Yes. Okay. If you wanna do the Brooklyn Burger, you can also buy the sliders. Youve never had sliders on your menu, and i think you should try sliders. Yeah, all right, i go ahead and throw a couple in. Bye. I got my first sale. Check you out. They hadnt been bought in five weeks. Selling, collecting, youre doing it all. Hey, kelly, its frank over at stein meat. I need two case of 18 by 20 and two case of 14 by 24 bone guard. P. O. Number is 986822. Thank you very much. I hear frank on the phone, ordering a whole list of items. All purchase orders are supposed to go through me for approval. Its the only way we have right now to manage spending. And he doesnt know if we have the money for this or not. What are you ordering . Plastic bags. You have to get an authorization for payment. No, this is something i do all the time. Whenever i see my inventory running low, i get the guys to give me the inventory, and then i order what i need. I have to get an authorization. And, frank, as the general manager, you have to know that cash is a finite resource. We just dont have a lot of it. So donnas gotta know all the money thats coming in and all the money thats going out. As the general manager, you gotta know that. Frank is showing some signs of being unqualified at being a general manager. There are things that he should know that he just simply doesnt know. Thats what well do from now on, not a problem. Hi. Hey. How are you . Let me just close the door. So, guys, i need you to get my mind wrapped around frank being the general manager here. Help me understand why you think hes the right person to be second in charge. You know, hes not necessarily the way he should be. Im watching him argue with donna. Im not convinced. He runs the show downstairs. Yeah, heres the problem that i have. Ii have general managers all over the country. And i want them to be able to run the entire business. Which means understanding things like work flow and cash flow. And i dont sense that from him. Coming up. Frank, no one knew you ordered this. Youre supposed to give me the p. O. S. What are you missing . You look a little stressed. Im tired of frank. That [bleep]s gonna stop. I love you, couch. You give us comfort. And we give you bare feet. Backsweat and gordos everything. I love you, but sometimes you stink. New febreze fabric refresher with odorclear technology. Cleans away odors like never before. Because the things you love the most can stink. And plug in febreze to keep your whole room fresh for up. To 45 days. Breathe happy with new febreze. Lets start moving the tables down. And then if we can move this over theres a number of key things that we need to do to improve the process, which ultimately improves profitability. The first thing we need to do is shrink the floor space. I can save at least 5,000 a month, 60,000 a year. Well, put it this way. Put it that way . Yeah, it cant go that way. Go down more. We also need to reconfigure all the equipment, so we can maximize production. But now its going to flow. Its gonna flow from that side into here, and around into the packaging area thatll be over here, and then out the door. At least 25 to 30 more efficient. More production. Definitely more production. Okay, guys. I wanted to show you guys a few things. While were cutting costs, recovering money, and building more efficiencies, i wanna stay focused on growing the business. And i think Brooklyn Burgers just might be our secret weapon. With new packaging, i think we can sell a lot of units at Retail Stores. I like it. I dont know if you guys heard or not, but this is the official burger of new york. You wanna know why . cause there is no category. Who do i have to ask permission for for that . No one. Who do i have to pay . Both no one. Happens to have the same colors as the Barclays Center. Happens to have the same colors as the dodgers, on purpose. This is a marketing plan. I like that. I think the Retail Stores would be happy. All right, guys. Im gonna run. Buhbye. [whistle blows] [cheers and applause] im at the Barclays Center in brooklyn with alan at a basketball game. Howard and alan are paying 400,000 a year to be the official burger of the mets, the nets, and the yankees. The Brooklyn Nets alone, which is at the Barclays Center, is 180,000 all by itself. Good burger. Its the best. I wanna see for myself if these contracts are actually a good investment. It says Brooklyn Burger cheeseburger. Both barclays signature prime beef. Thats not barclays signature beef. Its ours. Did you see that before . No. But see, these are the details that matter. Were spending 180,000 a year. As i walk around the stadium, i dont even see 18,000 worth of value. I see the batchagaloop burger. Its made with a Brooklyn Burger so they have a burger in here thats not called the Brooklyn Burger . Thats a problem, right . The sports contracts that we have dont justify any sort of investment. Ive made the decision to terminate all of the sports contracts, and save over 400,000 a year. Were gonna focus on selling these burgers in Grocery Stores around the country. Look, im as enamored as you are by the glitz and the glam and the logos and all the fun stuff that goes with it. But at the end of the day, its a business decision, right . Correct. So it just doesnt although nice, the economics just dont work. And who gave you the p. O. . Okay, let me check with frank and ill get back to you. Okay, bye. Frank . Yeah . Youre still giving your own purchase order. Youre approving your own purchase, and giving your own purchase order. Right. For instance, this day, no one knew you ordered this. Then i will not purchase any more beef items, then. Thats the way i if allowed to purchase only supplies, then ill only purchase supplies. I still need to see it. You cant just youre still missing the point. You cannot just pick up the phone and say, so and so, i need 10,000 plastic bags. Heres my p. O. Number. No, you need to check with somebody, and say, is it okay that we purchase these 10,000 . And then that somebody is going to give you a p. O. Do you pay the bills here . No, i dont. Okay. Everybody you order from wants their money in ten days. We dont have the money to pay them. But when i need bags or bulk boxes, im you need to get an approval. So then how would you want me to do this . Youre supposed to give me the p. O. S. What are you missing . So either i need to either look through those bills or youre not looking through the bills. Youre not again, youre missing my point. You cant give your own p. O. Out. Okay, fine. Thats fine. Hows that . Thats fine. Pointblank, you arent entitled to give your p. O. Out. Thats it, case closed. Okay, no problem. Okay . No problem, no problem. [whispers] i dont know what to do. Donna . You doing okay . You look a little stressed. I dont know how much more of this i can take. Im tired of frank. I personally feel i do more work than he does. And i feel like i dont wanna be here. Im feeling that i really have a lot of thoughts that i just want to quit. My husband said, why dont you just quit . Why dont you just quit . Its something hes been telling me for two years now. Its not something hes been telling me but i feel like well, im gonna fix that today. Donna is one of the only reasons this business is still afloat. And if they dont keep her here and keep her happy, theyre screwed. Do you think that those guys know that if it wasnt for you, i wouldnt be here . No. Okay, well, that [bleep]s gonna stop. All right. Come with me, donna. I wanted to talk to the two of you guys. And i had donna come in. You can have a seat, donna. Shes upset. She doesnt wanna work here anymore. What exactly has been happening that led you to this point of feeling this way . I dont feel respected. I dont feel you take me seriously. For her to want to quit after 20 years you know why shes comfortable saying it . Because she feels like shes got nothing to lose. [bleep] is gonna change. Im a big believer in having the right people in the right job. So, donna, im gonna make sure this gets fixed. Can you give us a minute. Sure. And send frank in . Sure. Frank, youre up. Frank is not the general manager. Hes more of a manager downstairs. I dont think hes a manager up here in the office. Thats the reality of it. Hey, frank, can you have a seat . Sure. Frank, you are no longer the general manager. [intense music] coming up. I really need to talk to you about what im seeing in the companys financials. I would run. Wow. Frank, you are no longer the general manager. You can be a part of the team. But the way i see it and the way the bank sees it, is that you guys are really the general manager. Youre the floor manager. In addition, you have to take a pay cut. I want you to be here, but you have to earn it. And you have to prove it to them and you have to prove it to me. Im onboard. I appreciate you being openminded about it, okay . Not a problem. Well, i brought you to brooklyn. [laughs] hi. Both how are you . Whenever i invest in a company, especially one the size of stein, its Standard Practice for me to bring somebody to come in an analyze the financials. So ive flown in jamie, an accounting expert, to do an audit and to validate the numbers. Hi, nice to meet you. Same here. Jamie is a Portfolio Manager for me. The reason that she came out is really to dig into the books. And anything that she wants, just give it to her. Okay. Great, thank you. No problem. This is the open payables. So when you receive the invoices, it goes on this list . No. So does this break out how much youre paying in payroll . [scoffs] no . Does it interface into your system . No . Do you have an aging of your payables . No . I checked in with jamie, and she told me she wanted to speak to me privately. Right then, i knew that there was a problem. I really need to talk to you about what im seeing in the companys financials. Okay. Their payables are about 3. 8 million. Thats several million more that i thought it was. The numbers that jamies giving me now are dramatically different than the numbers that i was given when i made the deal. They told me the total amount they own to meat suppliers is 2 million. Its actually 3. 8 million. Their bank loan is 4 million and completely tapped. Jamie found an additional 500,000 on the bank loan, which means that stein is actually obligated to pay back 7. 8 million, not 5. 5 million. The bank wants to end the relationship immediately. To make matters even worse, that 4 million is the banks limit. And theyre demanding payment on that loan. They have no cash. And we have about 30,000 of cash to cover the expenses. Honestly, i dont know how theyre making payroll on a weekly basis. I mean, this business is insolvent. Theyre almost bankrupt. Depending on how much they can collect of their receivables, their total assets are no more than 5 million. Because their total liabilities are almost 8 million, the level of insolvency they have isnt 500,000, its nearly 3 million. Thats six times what i thought i was signing up for. Its almost financially impossible to figure out how theyre gonna be in business 10 to 14 days. Wow. I would run. [indistinct chatter] hey, guys, we gotta talk. We got a problem. I just got through talking with jamie. And theres a 3 million hole that you cant explain. And you have 30,000 in the bank. Are you guys aware of that . We had no idea. I knew the bank account was low, but i didnt know the gap was that large. Did you . I didnt think it was 3 million. The deal that we made was based on 2 million payables, not 4 million, right . Right. I mean, this puts us in a very precarious position. Guys, this is bad. All these people out here that are scared to buy a car, because theyre scared theyre gonna lose their job, well, they have a reason to be scared. Because this business is two weeks away from closing. I know it doesnt look good. I dont want you to think that we knew it and were hiding something from you. This is new to us also. Things are way worse than you think they are. Where do we go from here . You said to me that you thought the business was worth 15 million. To me, i think its worth 15 bucks. Its frustrating. And ive lost confidence. From a business standpoint, right now, i dont think this is a good investment for me. I need some time to think about this. If your business is in trouble and you need my help, log on to theprofitcasting. Com. Were in a much more desperate situation than we thought we were. I mean, weve been together almost 40 years. And for it to come down to this, we have to do something. We have bills to be paid, payroll to be met. I dont know what were gonna do now, without him. We shouldve been watching it more carefully. Its gonna be both scary. Its a scary situation. I hope we can work something out. With what i just learned, i realized that i have some real thinking to do. If i go through with this deal, i dont know how big the hole is. I dont know if ill ever get my money back. I also know that if i back out, it would be devastating to howard and alan, and 37 employees who work there. I dont think they can survive. Its a very tough dilemma. Alan, howard . Hello, marcus. Hey, guys, how are you . Hey, marcus. Thanks for coming back. Good seeing you. Glad to see ya. Good to see you. Look, guys, i thought about whats happening here. I normally, in a situation like this, when the numbers are wrong, completely wrong, i would normally just walk away. But theres too much history. There are too many employees. You guys have too much at risk. And im not gonna let the bank take it from you. Both thank you very much. We appreciate that. Thank you. Im gonna help you as much as i can, but im not gonna invest what i said i was gonna invest. I wanna make sure that im clear about that. But we need money to make payroll and for our working capital. Thatsthats very important at this point, cause we wanna be here tomorrow. And how much do you need . About 200,000. You know, i cant just give you the money. I cant just write you a check and give you a gift, as much as i like you guys. You know, im not a consultant. I do things to save jobs and to make money. I dont just kind of hand money out. And so, in order for me to give you that money, im gonna need to get a return on my money. And the only thing that i could think of is that i buy Brooklyn Burger from you. And ill repackage it. And ill get it back on its feet. Were willing to do whatever it takes. But with your guidance now, i think that, umthat things will work out much, much better. Okay. And i think we can make money. Weno, no. We will make money. You will make money. My hope is that Brooklyn Burgers can start turning a profit quickly and pay down the debt. We got a lot of work to do. Oh, yes, we do. Lets get to work. Now my moneys not fully invested in stein meats, but i am. Well get this company back on its feet. Deals can sometimes take unexpected turns, but last year i invested in a used car buying business that was about to go bellyup. Im dangerously low on cash right now, which means i cant buy cars. My jobs on the line. Its been seven months since we did the deal. Change is coming. And i have a great story to share. The business in dire straits before marcus came. Well, how much are you making now . Ooh. For Business Advice and extra scenes from the show, go on to cnbc. Com theprofit. Last year i met two brothers who owned car cash, a struggling auto buying business in midtown, manhattan. Im dangerously low on cash right now, which means i cant buy cars. When their father died in 2012, the brothers andrew and jon took over. But their sales slowed, their profits evaporated, and their relationship grew strained. Im sick of this [bleep]. Are you out of your mind . Theres no [bleep] way. Ill do anything to fix this business. The business was 200,000 in debt. No cash to buy cars, they were weeks away from closing. My jobs on the line. But i knew it had potential to make a lot of money. So when you take my check, for the next week im 100 in charge, which means what i say goes. Because change is coming. So i made a deal and invested 200,000 for 100 of car cash. Jon and andrew are licensees of mine. You guys will share in a percentage of those profits without having to put up a dime or do a days worth of work. I fixed their car buying process. Point out the defects with the car. You can get this replaced. It costs 300 or 400 bucks. Make sense . I like that. And i increased their margins by eliminating wholesalers. This is new york city. This is my [bleep] town. The wholesalers have to go. They go or i go. And i spent another 350,000 to renovate their location. This whole place is getting redone. Lets go, guys. Hit it like you meant it, though. To say that this is a transformation is an understatement. Today, car cash is making over 10,000 a month. And the brothers are making money for the first time in years. And andrew and jon just opened a second car cash location in new jersey. Hey, guys. Hey, marcus. How are you . Good to see you. Place looks busy. Yeah, its very busy. And the brothers are now working as a team. And how aboutis jon is he still beating on you . A little bit here and there. Yeah, right . Hes still my little brother. Im actually in the process of opening three other locations. Hes definitely embraced the process, and were better for it. The business was actually in dire straits before marcus came. After marcus came, business increased substantially, and the profits margins increased as well. Well, you were making about 1,000 a car before. How much are you making now per car . 2,000 now. Wow. To date, ive invested over a Million Dollars into this business. Now im taking the car cash brand, and opening up locations all over the country. Where do i get started . What do i gotta do . Im interested. We have 70 locations, a national 1800 number. And our brand, 1800 car cash, is quickly becoming one of the largest auto buying services in america. Were even the national Car Buying Service of nascar. Well, guys, im really proud of you. Thanks, marcus. Youve made a lot of strides in a short period of time. I just wanna thank you for everything that youve done for us, for the business. You really saved us. And you gave us hope. And it means a lot to me, personally. I wish you a lot of luck. And, you know, ill be around if you need me, okay . Yeah. Live at the Nasdaq Market site after a very busy week for the markets. The guys getting ready. Heres whats coming up on the show. A Million Dollars isnt cool. You know whats cool . Buying shares of facebook for just under few of bucks. Well show you how to do it using options. Its everyones favorite saying on wall street. I am not just another broker no, not that. I was referring to sell in may and go away. And theres something that suggests you might want did take that advice this year. Well explain. And loaded for speed, go thats exactly what shares of tesla have done. But if youre worried about next weeks