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Financially Stabilizing Injection Molding Plants

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Home·Financially Stabilizing Injection Molding Plants

The Situation

  • The company owns several injection molding plants throughout North America, including those in the Midwest, Toronto, and Mexico. The client base includes prestigious names in the appliance, automotive, and consumer-goods industries.
  • The company is the result of a roll-up strategy, which combined 12 mid-sized plants, mostly located in the same geographic area, that served the same group of customers.
  • The company had missed its projections on several occasions. A new CFO came into a position that had become a revolving door. A major system initiative to convert the company to a single platform was underway, and the company was in covenant default.
  • A complicating factor was that the bank group agent had exposure in several other deals with the same private equity firm.

How We Advised

  • Our experts assessed the company’s projections, business plans, operations, and personnel.
  • Our operations team visited several plants in Canada, Mexico, and the US to conduct individual in-depth assessments of management and the plants. We reviewed the company's budgets and projections.
  • Presented assessment and findings to the bank group and to management, and then became part of ongoing management meetings.
  • Given our assessment, the banking agent felt confident in restructuring its various loans, and the company was provided with the capital to grow by its private equity owner.
  • Although the company continues to struggle with the difficult economic climate, it is now stabilized, and its financial performance is relatively predictable.
  • We continued to monitor the company’s performance and to provide advice to the bank group in this ongoing workout.

Key Contact

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

Related Practice Areas

> 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. 

 

> 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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