Case Study:
Custom Packaging Company
Packaging company reorganized, including new financing enabling company to thrive
This custom packaging company was experiencing declining financial performance. This, combined with an unwieldy ownership and management structure and an overreliance on a single customer, created uncertainty with its senior lender. After a covenant default, the senior lender requested that the company find alternative financing.
The Solution
Working to replace the four-owner management structure, Harney was instrumental in hiring a new CEO with decision-making authority and in arranging the buyout of two of the owners.
Credit insurance was obtained to free up customer concentration risk.
A new financial and strategic discipline was instilled throughout the firm.
With a better command structure in place and demonstrated financial tools, the company was able to obtain refinancing with a new lender.
The Results
Company operations were greatly improved in terms of efficiency and profitability.
Balance sheet improvement resulted in willingness by the lender to allow additional investment in facilities and equipment.
New product offerings were facilitated, and the Company was able to grow and thrive.
Services & Roles
Turnaround and Restructuring
Financial Advisor
*Some engagements may have been performed by team prior to joining Harney Partners.
