• Subsidiary 1 was in the process of executing a strategic plan to diversify its product offering and consolidate/upgrade/relocate its production facilities. During this time, the Company also faced margin pressure due to challenging market conditions and high input costs. As a result, the Company suffered significant operating losses for two consecutive years.
• Subsidiary 2 experienced the loss of two key customers resulting in significant volume loss but remained profitable. Within a year, the Company secured 4 new major customers. However, these customers required the Company to make significant capital investments in order to retain the business.
• Fort Dearborn was engaged to review and revise the Company’s strategic plan and financial forecast.
• As part of the process, Fort Dearborn developed a thorough understanding of the company’s operations, its sales and hedging strategy, as well as its purchasing contracts and commitments.
• Fort Dearborn worked with management to refine its hedging strategies, revise its procurement practices and to develop a robust cost accounting for its products.