Case Study                                                       Back Next

     Seafood Distribution Company

  $85 million revenue, private with an equity sponsor

  Background:

The Company was undergoing severe cash shortages due to excessive operating costs and overheads.  Loss of major retail customers and the lack of a growth or survival strategy contributed to the company's difficulties.  Serious cash shortages and liquidity problems ensued.  The equity sponsor had grown tired and was seeking a solution or a quick exit.

  Result:

Wimmer Associates conducted an assessment of the Company and concluded that by focusing the Company on its "core competency" a viable business model could be successfully implemented.  Within 6 months WA turned a $250,000 per month loss into a positive cash flow of $150,000 per month with an annualized projection of $1.8 million EBITDA.  WA was then engaged to sell the Company.  Twenty-five acquisition candidates were approached; a strategic buyer acquired the Company.  The equity investors successfully exited receiving a five-year earnout.