Case Studies

Improved Performance Allows for Distributor's Refinancing

J.S. Held Acquires Clark Seif Clark, Strengthening West Coast Capabilities for Environmental Claims, Disputes, and Catastrophe Response

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Home·Improved Performance Allows for Distributor's Refinancing

The Situation

$80 million building products and hardware distributor. $15 million debt. Serving 9 states primarily in the Southeastern United States.

  • A 40% volume decline over a 2-year period.
  • Sister company supply house is putting additional strain on operations and working capital.
  • The company is unable to service its debt and is sitting on excess inventory and other non-performing assets.
  • The senior lender had grown fatigued and was exploring all options to exit the relationship with the Company.

How We Advised

Our experts were hired to develop a turnaround plan and refinance the existing senior debt.

  • We assisted the Company in restoring positive cash flow by shrinking operations, enhancing gross margins, and reducing operating costs.
  • Our team turned around the company by improving cash flow, selling non-core assets, and successfully refinancing the existing senior debt within a twelve-month period.
  • Cash flow improved through enhanced gross margins and reduced operating costs.
  • We sourced a new credit facility while the Company was still in the midst of a turnaround.
  • The previous lender was paid in full, and all accounts payable were brought up to date as a result of the refinance.
  • The Company was able to avoid a forced sale/liquidation and is now well-positioned with a strong financing partner.

Key Contact

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

Related Practice Areas

> 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. 

 

> Operational Performance Improvement 
We leverage extensive experience to serve as a partner to organizations to implement the appropriate operational steps to grow their business and create enterprise value. Our experts have diverse backgrounds and are expert problem solvers. We rapidly assess a situation, develop a holistic solution, and execute efficiently with purpose.

Our Experts