Stabilized cash flows, restructured supply and distribution arrangements, positioned the company for an injection of equity capital, and provided 13-week cash flow forecasts to the company and the secured lender
Advised company to add a second manufacturing source, providing needed pricing competition re original manufacturer
Renegotiated terms with the original manufacturer, significantly improving pricing and setting up payment plan for past balance
Negotiated new distribution agreement: 1) provided for cash advances against future sales to take pressure off LOC, 2) significantly increased guaranteed minimum purchases, 3) instituted regular funding of projected promotion spend to eliminate cash flow volatility, and 4) established a payment plan for balance owing for past promotions
Stabilized production and cash flow by overhauling supply and distribution.
Negotiated sustainable payment plans to set company on strong financial path.
$8 million EBITDA improvement, from ($4.7 million) to $3.3 million and growing.
Set up company to attract a two rounds of growth equity investments at valuations very substantially in excess of valuation prior to our engagement.
Senior loan substantially paid down and brought well within facility parameters.
Company is thriving as the fastest growing in its segment, continuing to attract the attention of key players.