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Agriculture & Food

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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
Ag & Food - Case Study #3

OUR IMPACT

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Avoided bankruptcy which saved the company millions of dollars of professional fees, loss of customer contracts and key employees.

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Successful renegotiation of covenants with the lender.

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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).