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Aerospace & Advanced Manufacturing

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MERU CASE STUDY

Identified $3.7 – $6.0M in liquidity and $1.6M in costs for an aerospace manufacturer

COMPANY OVERVIEW

  • Leading provider of high efficiency solar cells, solar panels and composite structural products for satellite and aerospace applications
  • Annual revenue of approximately $100 million
  • The Company faced EBITDA and liquidity pressure due to delays of two large program awards causing a significant write-down of 2018 EBITDA
  • The capital intensive and high fixed-cost nature of the business contributed to the liquidity pressure faced by the Company

OUR APPROACH

  • Developed and implemented cash management strategies, tactics and processes
  • Developed a revised bottoms up 13-week cash flow forecast linked to the production schedule
  • Performed an in-depth operational assessment including site tours of both production facilities and interviews with key operational leaders
  • Reviewed the top 20 programs representing ~90% of 2018 remaining revenue to identify potential risks and opportunities
  • Provided transparency to the cost structure and identified cost reduction opportunities
Case Study graphics - Industry Stock images Quote Graphic Library (2)

OUR IMPACT

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MERU identified between $3.7 - $6.0M in liquidity opportunities and $1.6 million of cost reduction opportunities.

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Authored report outlining (i) cash management strategies, (ii) liquidity and operational improvement initiatives, and (iii) cost-reduction opportunities, including levers associated with each initiative, impact on EBITDA / Cash, and one-time implementation costs to achieve each.

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Created implementation plan for the initiatives identified and obtained buy-in from the Company and sponsor.