Case Studies

Refinancing for Electronic & Commercial Printer

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

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The Situation

High-end Commercial Web and Sheet Printer specializing in the cosmetics and pharmaceutical industry. $80 million in annual revenues. $46 million in debt. Two plants in two states.

  • The company was caught in the severe economic decline impacting most of its main lines of business.
  • Revenue had fallen from $140 million to $80 million and was poised for more decline as consumer product demand continued to drop
  • Original equity was out of the money.
  • Rescue capital of $15 million, put in just 9 months earlier from mezzanine lender, was out of the money.
  • The lender group was facing a material loss on its position.
  • Sales management, which had lost its equity and controlled the customer accounts, was threatening to take their accounts elsewhere.

How We Advised

Our experts were retained to assess the viability of the business plan because prior Fortune 100 consultancy firms could not determine the business risk to the lenders' satisfaction.

  • Prepared comprehensive business plan assessment and operational and financial review of core business model and the assumptions driving projections.
  • Identified scenarios under which the lender could provide support for the company by assessing the risk and cooperation among the stakeholders.
  • Devised exit scenarios and operating scenarios that the company could work with to mitigate the lender’s risk.
  • The company’s long-term business plan was validated through a series of detailed analyses conducted by our experts.
  • Cost reductions of $4 million were identified and integrated into the business plan to improve financial strength and viability.
  • Our team recommended that the risk of further failure was too high for the lender’s risk tolerance.
  • Plan for exiting the credit that was favorable for the lender and kept the company intact and viable for shareholders.
  • The lender group exited within 3 months.

Key Contact

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

Related Practice Areas

> Business Plan Validation 
We deliver integrated solutions for distressed and insolvent businesses that maximize recovery, mitigate risk, and restore enterprise value. Our experts are retained to help distressed organizations stabilize operations, protect stakeholder interests, and execute turnaround strategies. We take an operationally-focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Our team delivers hands-on guidance and independent analysis to lenders, creditors, legal counsel, executive teams, boards of directors, and investors. 

 

> Business / Operational Assessment 
Most consulting firms approach a business assessment from a purely financial perspective — our assessments provide a 360° view of a business, addressing growth drivers, profitability, and uses of capital. Along with detailed financial performance reviews and cash flow forecasting, our comprehensive Business / Operational Assessment identifies the various challenges clients encounter throughout their operations. 

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