Case Studies

Price Increases and New Sales Earns Additional Capital

J.S. Held Acquires GLI Advisors, Strengthening Our Construction Project Support Services in the Western US and Hawaii

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Home·Price Increases and New Sales Earns Additional Capital

The Situation

Manufacturer of OTC pharmaceuticals and nutritional supplements. $60 million annual revenues. $20 million debt. 

  • Increases in oil pricing created dramatic raw material cost increases.
  • Company unable to pass increases to customers, causing EBITDA deterioration.
  • EBITDA of $4 million was only half of projection.
  • Payables stretched to 90 days and company had no availability on their bank loan.

How We Advised

  • Our experts assisted CFO in preparing cash flow and financial forecasts.
  • Helped CFO create financial plan and forecast, coordinated bank relationships.
  • Initiated numerous price increases and reduced inventory by $1 million.
  • Business plan presented to bank and sub debt/equity stakeholders and negotiated increased debt support from lenders.
  • Revenue increased $20 million due to price increases and new customers.
  • Margins restored to plan and EBITDA increased to $8 million.
  • Senior bank provided additional $2.5 million and sub debt provided additional $1.5 million term debt to support business growth.
  • Company became an industry price leader.

Key Contact

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

Related Practice Areas

> Office of the CFO & Corporate Finance Support
The financial function is a critical partner in value creation in most businesses. We provide unparalleled support to the Office of the CFO to shape organizational strategy and enhance long-term business value. As CFOs and finance leadership across sectors face increasing demands, understaffing, and unprecedented challenges, we deliver guidance regarding financial planning and operations improvement, risk mitigation, and strategic business intelligence.

 

> 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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