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 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 Solution

  • 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

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 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 Solution

  • 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

The Challenge

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

The 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.