Focus Management Group

Manufacturing Industry Experience

Pipe and Tank Manufacturer

Company:

Pipe and Tank Manufacturer

Situation:

The Company manufactured pipe, tank and other products designed for use in highly corrosive, structurally demanding applications including the oil & gas, petrochemical, water treatment and other end-user markets.

Focus Scope:

As a result of market pressures and a significant decline in revenues, Focus was retained to analyze operations, develop liquidity projections and negotiate changes to the senior debt structure.

Tasks Performed:

  • Developed Key Performance Indicators for operating metrics such as labor costs, material yields and machine setup times.
  • Constructed detailed liquidity and financial projections based on testing key assumptions related to sales pipeline activity and expense run rates.
  • Developed breakeven analyses for various product lines and a slow-moving inventory analysis.

Results:

  • Focus worked with the senior lender to adjust financial covenants, normalize borrowing formulas, and negotiate terms of forbearance.
  • Focus’ plan was then utilized to successfully identify a buyer for one of the divisions.
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