Case Studies

Business Viability Assessment of Paper Product Processor

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Home·Business Viability Assessment of Paper Product Processor

The Situation

Processor of paper products made from recycled materials. $250 million in annual revenues. $150 million in debt.

  • The company was in violation of all loan covenants following several years of severe operating losses.
  • The liquidity crisis was impacting the day-to-day business operations and performance.
  • There is a significant possibility of losing financing due to the company’s underperformance and uncertainties in the paper markets.

How We Advised

Our experts were retained by the State of Wisconsin Investment Board (SWIB) to perform a business viability assessment.

  • Prepared comprehensive business plan assessment and operational and financial review of core business model and the assumptions driving projections.
  • Identified direct and indirect annual cost reductions.
  • The business plan is valid based on the analysis conducted by our team.
  • Cost reductions identified by our team, combined with validation of the business plan, resolved lender concerns and reestablished banking relationships, preserving all existing borrowing.
  • Management is able to return the company to profitability while meeting all obligations.

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. 

 

> 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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