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Financial Advisory for Plastic Injection Molding Company

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Home·Financial Advisory for Plastic Injection Molding Company

The Situation

Plastic injection molding company with fifteen plants. Serving the medical instrument and automotive sectors primarily. $270 million in annual sales. $55 million debt.

  • The company faced a 67% drop in its automotive business.
  • $70 million of capital expenditures in a four-year period to expand its profitable medical instrument business had substantially increased debt.
  • Liquidity was tight, with a projected $1 million for a company with revenues of $230 million.
  • Given the uncertainty of the automotive exposure, the bank group wanted to force a sale or additional investment, which would likely dilute the owners.

How We Advised

Our experts were brought in as Financial Advisors to review the company’s forecast and develop a viable business plan.

  • Working with company management, the team identified $24 million in annualized cost cuts by consolidating business units, closing facilities, reducing personnel, and decreasing wages.
  • We helped the company negotiate a forbearance agreement with the bank group that provided the company with additional liquidity and debt payment relief.
  • The company was able to withstand the $40 million drop in its automotive business and gain time to build its medical instrument business.
  • Due to the decisive measures taken, EBITDA improved from a forecasted $12 million to $36 million
  • The bank group permanently refinanced the company’s debt structure.
  • With the improved profitability, the business was sold to an investment fund, resulting in huge gains for the owners.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

Related Practice Areas

> Debt Restructuring Services 
When a company is in financial distress, our Strategic Advisory experts design and implement debt restructuring and refinancing strategies tailored to the company’s unique circumstances. We help middle-market businesses stabilize operations, improve liquidity, and optimize their capital structures. 

 

> Turnaround and Restructuring Services 
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation. 

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