Healthcare, Food & Nutraceutical Manufacturer

Company Overview

Healthcare, Food & Nutraceutical Manufacturer - Our client is a $25 million manufacturer serving the food, healthcare and sport and nutrition industries.  The Company is located in Minneapolis, Minnesota and manufactures and packages agglomerated, dispersible, coated specialty ingredients and nutraceuticals.

Engagement Overview
•  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.

•  Based on Fort Dearborn's assessment of the Company's financial position, FDP was able to assist the Company in obtaining additional financing to support the growth in sales and capital expenditures from its existing lender.