• The Company experienced the loss of two key customers resulting in significant volume loss, but remained profitable. Within a year, the Company secured four new major customers, however, these customers required our client to make significant capital investments in order to retain the business.
• During this time, the Company's line of credit significantly increased, causing tight liquidity.
• Fort Dearborn Partners (FDP) was engaged to review and revise the Company's strategic plan and financial forecast.
• FDP developed a thorough understanding of the Company's operations, sales and marketing initiatives, as well as its capital expenditures budget, to support its aggressive growth strategy.
• FDP worked with Management to increase the Company's liquidity by scaling back capital expenditures while not compromising growth.
• FDP also provided the Company with a flexible financial forecast that enabled Management to perform scenario analysis over sales levels, gross margins and capital expenditures and its impact on liquidity.