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Case Study

National Nursery Grower & Licensor

National nursery grower with farms and growing areas on both coasts, including wooded shrubbery, trees, and other higher caliber unique varietals.

Revenue

$200 million

Industry

Food & Agribusiness, Wholesale Distribution

Services Provided

Turnaround & Business Restructuring, Enterprise Performance Improvement

Situation

Family-owned business, managed by second generation family members. Trust issues had developed among family members, further exacerbating operational and profitability issues. $100 million credit facility was in default with bank group that had lost confidence in the management team. Bank group was pushing for an in-court proceeding to get loan paid off through a sale or liquidation.

Accomplishments

  • Served as Chief Restructuring Officer during an initial turnaround period to help lead business restructuring initiatives to reduce cost and liquidate selected inventory, identifying root causes affecting profitability, and assisting with accounts receivable collections and related process improvement.
  • Assisted with improved operational reporting and more timely financial reporting to support turnaround plan and to facilitate lender discussions. Restated certain of the financial and operating reports to facilitate lender understanding of farmer production accounting, inventory values, and product costing.
  • Assisted with communications and negotiations with lenders to support temporary over-advance and path to profitability. Facilitated restructuring of revolving line of credit and managed pay-down of loan balances, and eventually reset loan to support growth plan.
  • Identified and helped management with implementation of selected strategic initiatives including licensing fee/royalty arrangements with growers to produce product around the country for national retailer.