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Unnatural Links Example Case #2

Recently, my rankings tanked, followed by a massive drop in organic traffic. I checked my Webmaster account and discovered a manual penalty for unnatural links. I've used three SEO companies and when I contacted my present company, I was advised that there was a problem with my link profile due to bad links built by the previous companies. They explained that a review of my back link profile needed to be done to figure out which links were responsible and to request removal of these links by contacting the domains on which they were hosted. This was to be followed by disavowing the links that could not be removed, and then, finally, requesting reconsideration from Google. I was told it could take many, many months to get the penalty revoked and restore my rankings and traffic. Is this true? Is this the correct strategy for this situation? How PBG Would Handle This Problem