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Case Studies Manufacturing

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Under Recovery

The Engagement

Conway MacKenzie worked for a company which was a $30 million in revenue diversified manufacturer. One operation experienced significant losses which created cash drain. The balance of operations performed adequately, but support of poor performing operation created overall liquidity strain. The company suffered the inability to maintain consistent flow of raw material due to backlash of trade creditors. The company refinanced to generate additional liquidity.

Our Role

Conway MacKenzie provided financial advisory services to the company.

The Result

The success from the refinancing transaction included asset-based facility on “stretch” basis, sale/leaseback financing that generated significant excess funds and existing bank absorbed minor shortfall and looked to the sale of certain assets for recovery.

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Improving Efficiency

The Engagement

Conway MacKenzie worked for a company which was an over $60 million private custom machinery and equipment manufacturer. The company was a supplier of highly engineered, complex metal forming, welding, stamping and assembly equipment for the automotive, white goods and HVAC industries. The operations were underperforming, sales were well below forecasts, and the margin was eroding.

Our Role

Conway MacKenzie assisted by assessing the business plan and key drivers including a projected profitability study, quoting processes and improvement initiatives. The results supported the need for greater focus on the key restructuring initiatives, including SG&A rationalization and Company cash flow projections.

The Result

Conway MacKenzie identified several opportunities to improve near term liquidity and cash flow, generating $1.5 million availability. Conway MacKenzie made recommendations to contract structure and project management to address key drivers for cost overruns that have eroded margins.

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Manufacturing a Successful Outcome

The Engagement

Conway MacKenzie worked for a manufacturer of steel components, including steel bars. The company had multiple plants with over $150 million of senior secured debt with multiple member bank groups. The company had a significant increase in debt to support acquisition and capital spending immediately prior to significant industry downturn.

Our Role

Conway MacKenzie was engaged by the bank group which initially asked to have them perform a viability analysis. Conway MacKenzie conducted management interviews, plant visits and operational reviews, performed industry research and analysis, analyzed actions taken by management to improve profitability and cash flows, reviewed and analyzed management projections and prepared breakeven analyses.

The Result

Together with bank group, Conway MacKenzie negotiated an out-of-court restructuring with the company and its advisors. At closing, the bank group converted approximately $70 million of senior debt to subordinated debt, preferred stock and warrants.

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