Corporate Advisory

Case Study: High Volume Foodservice Company Faces Post-Acquisition Challenges

The Challenge

Client purchased an established high volume foodservice company. Post-acquisition cash flows and debt service were tighter than expected and its current bank was losing patience.

The JMSeas Solution

  • Developed optimal financial model to run operation post-acquisition.
  • Implemented cost containments to get back on track.
  • Prepared presentations/financial models for current and potential lenders.
  • Client ultimately committed to requisite cost containment and is on the path to recovery.  

Case Study: Partnership Breakup

The Challenge

Company was initially comprised of two co-founding partners. As the company grew, one partner became more active while the other became less involved. The active partner wanted to amicably take out the passive partner.

The JMSeas Solution

  • Advised client on financial controls, projections, and growth and risk mitigation.
  • Advised on best approach to value the company, structure a buyout and document an amicable separation.
  • Advised on the day-to-day transition to a one-owner company and ensured that the departed partner was fully informed on the company’s status as scheduled payments were made.
  • While the remaining owner did a terrific job growing the company, he realized that the departed partner did have specific skills that were needed. JMSeas facilitated a limited consulting role for these two parties to be selectively reunited.

Case Study: Company Shifts Business Model

The Challenge

Client had a strong performing B2B product line, but was concerned about long-term value and decided to shift focus to B2B2C. This new product line was well received and client is now thinking lucrative exit.

The JMSeas Solution

  • Advised client on transition from a B2B to a B2B2C model.
  • Valued and negotiated an amicable exit from legacy partner.
  • Advised client on strategic pivot, quantified upfront risk, established a manufacturing infrastructure and developed financial models to attract outside capital.
  • Advised client on ensuing national rollout, capital and liquidity optimization and assisted in negotiations with many classes of stakeholders.
  • Advised client on next stage of growth with an eye toward exit planning and optimizing terminal valuations.

Case Study: Commercial Contractor Facing Lost Revenues

The Challenge

A large commercial contractor lost 80% of its revenues due to cyclicality and its bank was applying pressure to get repaid. Client had many sleepless nights.

The JMSeas Solution

  • Identified and helped implement radical cost containment, conversion to a variable model and a survival plan.
  • Reviewed underlying documents and bank’s actions to derive a go-forward strategy.
  • Bank forgave 100% of exposure.
  • Collaborated with legal, accounting and tax team to help client ultimately survive.
  • Currently advising client on corporate structure, financial modeling and risk management to ensure optimal preparation for the next, inevitable downturn.

Case Study: Manufacturing Establishment/Divestiture

The Challenge

Client established a manufacturing entity to produce its product but underestimated the time and resources required for production.

The JMSeas Solution

  • Advised client on the financial infrastructure and controls needed to establish manufacturing operation.
  • As resources became strained, collaborated to bring in a strategic, manufacturing partner to enhance and stabilize operations.
  • Advising client on a go-forward, variable-based cost model.