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Case Study

Multi-Level Marketing Company

Multi-national packaged health foods and juice production, marketing, and distribution; operating in 20 countries; private equity investment in the form of debt.

Revenue

$850 million in historical sales

Industry

Multi-Level Marketing (MLM), Food & Agribusiness, Technology

Services Provided

Turnaround & Business Restructuring, Distressed M&A Support

Situation

After initial success involving unique product launches in the multi-level marketing space, Company was slow to innovate new products and normalize compensation plan to support long-term sustainability. Recurring losses occurred and were no longer sustainable. After two failed efforts to market and sell Company through investment bankers, private equity investor was anticipating a liquidation of the business.

Accomplishments

  • Served as Chief Restructuring Officer to manage turnaround process which included downsizing of the business operations, outsourcing of product production, downsizing of information technology costs with implementation of new financial and production systems, and wind-down of selected international country operations.
  • Managed recovery to private equity firm of investment and returns, including continuing investment in new combined entity.
  • Facilitated stabilized operating business to break-even operations and managed sale process of Company through an auction process.
  • Managed cash to support runway to facilitate time to downsize, prepare new products for launch, monitored adjustments to compensation plan, and prepared business for sale.