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Case Study
Seafood Distribution Company
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$85 million revenue, private with an equity sponsor |
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Background:
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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.
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Result:
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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.
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