Liquidity and performance improvement for a frozen food manufacturing & distribution company​

Picture this...

You’re a second-generation frozen food manufacturing and distribution company experiencing performance issues related to the flawed implementation of a packaging refresh, resulting in cost overruns and volume losses that land you in default with your secured lender. This issue exacerbates several years of financial performance struggles. The lender requires an assessment of the business plan and liquidity outlook, as well as a plan to address escalating trade vendor issues. Although you have excess equity in the real estate that could help fund the liquidity issues, different ownership structures within the family make it challenging to align interests.​

You turn to Accordion.

We partner with your team to assess key issues, review financial and operational plans, and model the liquidity outlook. During the pandemic, you receive a boost in volume due to the fact the company sells primarily into grocery chains. Combined with receipt of PPP funds, you can pay down vendor arrearages, allowing management to focus on driving operational improvements. After a detailed review of product margins, you negotiate price increases with customers, which empowers management to monitor commodity price increases and proactively pass on increased costs.​

Your value is enhanced.

Given the turnaround in the business, you attract a replacement lender who provides additional borrowing to stabilize the operating business and acquire the minority real estate interests. This allows the operating business to align with the real estate ownership, thus streamlining future decision-making. ​

Subsequently, this work sets you up as an acquisition target and your company is purchased by an institutional investor.​