Agriculture & Food
MERU CASE STUDY
Restructured a $300M domestic frozen food distributor
COMPANY OVERVIEW
- A $300M frozen food distributor (ESOP) with 5 distribution & cold storage facilities servicing customers across 14 states
- Lost their largest distribution customer accounting for ~70% of 2017 revenue projections
- This resulted in EBITDA and liquidity pressure as the company attempted to stabilize and generate new business
- MERU was engaged to: (i) review and assist with refining of the company’s 13-week cash flow model, (ii) develop an integrated, scenario-based, 5-year three statement model, (iii) assist with lender communication and negotiations, and (iv) develop and implement a key employee retention plan
OUR APPROACH
- Refined and re-built portions of the company’s existing 13-week cash flow model and assisted the controller with weekly cash management
- Rapidly developed a revised operating forecast and scenario-based 3 statement model used as the key tool to lead negotiations with lenders
- Developed and presented a key employee retention plan to the Board of Directors using supported market data and company comps
OUR IMPACT
Avoided bankruptcy which saved the company millions of dollars of professional fees, loss of customer contracts and key employees.
Successful renegotiation of covenants with the lender.
Provided transparency into the liquidity runway allowing the company to optimize the sale process timeline and close multiple asset sales (key milestones in the long-term viability plan developed by MERU).