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     Major Food Producer

  $4.5 billion revenue, ASE Company; $350 million multi-bank secured debt plus bonds

  Background:

This highly Leveraged Buy-Out (LBO) was experiencing serious cash shortage problems.  Financial and management reports did not enable the identification of the source of the problem or isolation of the underlying causes.

  Result:

An assessment of the environment led to the identification of improvement options.  Working with the management team, consensus was reached to focus and agree to the strategic course of action leading to the greatest likelihood of success and value enhancement.  The Board of Directors and the six-bank secured lender group provided their support and plans were implemented; cash flow was enhanced significantly.  

The owners realized a 7-1/2 times improvement of their original investment in just three years.