Case Studies
Primary Industry: Transportation
Primary Services: Distribution & Logistics
Our client was a rapidly-growing last-mile delivery company, providing package delivery for major brands “in the last mile to the home or office” throughout California and Arizona. Our experts were engaged at the request of the Company’s private equity sponsor.
The Company had grown rapidly but, due to changing labor laws, had shifted its business model from exclusively using contract delivery drivers to full-time employees operating company-owned vehicles. Company management struggled to make the required changes and experienced significant negative cash flow. The Company’s loans were fully tapped and their PE fund was struggling with continued requests for capital support from the Company.
The PE Sponsor initially engaged our experts to identify the magnitude of the monthly cash burn, but the initial scope of the engagement expanded and spanned ten months. Our services proved vital to the Company, including operational efficiency, negotiations with constituents, development of strategic changes, development of proper financial and operational reporting, compensation model changes, and development of go-forward capital planning. Following our advisory, the Company returned to break even with an appropriate capital structure to support the business plan in the future.
Brian F. Gleason, CTP
Senior Managing Director
Strategic Advisory Practice
+1 610 659 8118
[email protected]
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