Focus Management Group

Distribution and Logistics Industry Experience

Food Distributor

Service:

Due Diligence

Company:

$300MM Vertically-Integrated Poultry Producer and Distributor

Situation:

The Company was seeking to recover from an over-expansion into specialty packaging of its end product. This expansion had not resulted in the anticipated increase in revenues necessary to support the high volume food packing infrastructure that the Company had built over the preceding three years. A lender contemplating financing the restructure of the Company was concerned that rising commodity raw material price changes would jeopardize the viability of the remaining operation.

Focus Scope:

The lender sought assistance from Focus to perform a due diligence assessment on the Company’s financial performance following the sale of one of its production facilities.

Tasks Performed:

Focus Professionals undertook a due diligence review that incorporated assessment of the Company’s projection, preparation of a bridge schedule showing the likely impact of the proposed restructure of the Company, and preparation of pro-forma financial statements and cash flow forecasts. Focus provided covenant recommendations to the lender specifically addressing the commodity price issues.

Results:

Focus Management Group's involvement resulted in the lender approving the credit opportunity with reduced commodity pricing risk.

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