Case Study: High Volume Foodservice Company Faces Post-Acquisition Challenges
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.
- 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
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.
- Advised client on financial controls, projections, and growth and risk mitigation.
- Advised partners 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
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.
- 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
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.
- Advised client on 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 but created a large tax exposure on the forgiven debt.
- Collaborated with legal, accounting and tax team to help client ultimately survive.
- Advising client on corporate structure, financial modeling and risk management to ensure optimal preparation for the next, inevitable downturn.
Case Study: Manufacturing Establishment/Divestiture
Client established a manufacturing entity to produce its product but underestimated the time and resources required for production.
- 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.