Case Studies
J.S. Held Acquires Clark Seif Clark, Strengthening West Coast Capabilities for Environmental Claims, Disputes, and Catastrophe Response
Read MoreThe Company was formerly a division within a major consumer camera and electronics company that was created to advance a new Photo-Printing Technology that does not require ink cartridges, ribbons, or toner. The Company is now a privately held stand-alone company headquartered in Massachusetts.
Our experts were engaged to conduct an operational diligence review on behalf of the Secured Creditor of the Company as a prospective borrower. The Company was seeking to secure a $8MM revolver and a $2.5MM term loan from the secured creditor. At that time, the Company had anticipated a launch of their product within 6 months of securing credit facilities. They had recently purchased a manufacturing facility in NC. The credit facility being provided in the transaction was intended to refinance this purchase and to fund working capital requirements associated with restarting the production in the NC facility.
Our team began by performing an assessment of the viability of the products and business plan of the Company. Over the course of three weeks, we visited the locations in MA and NC, interviewing key personnel, and touring the facilities that housed R&D and production. We also reviewed the capital structure at that time and the terms of the existing debt.
A thorough review of the Company’s pro-forma and business plan was conducted. This included detailed examination and evaluation of the individual elements upon which the top-level financial pro-forma was built and conducting independent research to verify the prospective market data included in the Company’s projections. Our experts reviewed the professional backgrounds of senior management, the nature of the Company’s strategic partnerships, and the sufficiency of the patent protection of the Company’s proprietary technologies.
As a result of our report and recommendation, the Secured Creditor extended the requested credit facilities to the Company. The Company prepared for the launch of its first product, which was anticipated in Q1 of 2008.
Brian F. Gleason, CTP
Senior Managing Director
Strategic Advisory Practice
+1 610 659 8118
[email protected]
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