Aerospace & Advanced Manufacturing
MERU CASE STUDY
Identified $3.7 – $6.0M in liquidity and $1.6M in costs for an aerospace manufacturer
- 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
- 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
MERU identified between $3.7 - $6.0M in liquidity opportunities and $1.6 million of cost reduction opportunities.
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.
Created implementation plan for the initiatives identified and obtained buy-in from the Company and sponsor.