Operational & Financial Due Diligence

Assessment and Advisory Services

  • Due diligence is a natural extension of our operational, financial, commercial and restructuring capabilities
  • Interviewing and assessing the management team of the target company
  • Touring the target’s plants and facilities to determine state of lean operations and practices
  • Assessment of target’s suppliers and logistics to leanness of supply chain and associated risks
  • Assessment of target’s customers/programs and product portfolio and pipeline, to assess feasibility of volume projections
  • Assessment of target’s business plan and associated financial statement projections for feasibility of attainment
  • Review and advice on Letter of Intent/Term Sheet as it pertains to customer, supplier, financial and operational issues
  • Interim management to take advantage of operating savings immediately Transition management – Hire new staff and to make a running change

CASE STUDIES

Privately Held Specialty Graphics Company

DESCRIPTION

  • Whitehall Group provided professional services in connection with assisting in the evaluation and planning associated with potential courses of action aligned to future direction of the company. Primarily focusing on the current business and the state of the current lender relationships regarding past, ongoing and future issues. In addition, Whitehall provided the necessary assistance in obtaining a new banking relationship to satisfy the needs of the company and financial constraints of the owners
APPROACH
  • Complete and analyze year-end financial statements, performance and interim comparative monthly financial statements
  • Review and/or develop historical and trend analysis of trailing 12 month as well as comparison to current period(s) performance and trends with appropriate assumptions to support the future direction of the company
  • Perform a review of operations to integrate potential cost or operational efficiencies for future consideration
  • Jointly develop management formatted forward financial and operational plans representative and inclusive of current and planned change actions (2 year forecast & 26 week cash flows)
  • Prepare and/or review a forward cash flow through utilization of anticipated needs driven by various contemplated volumes and risk adjustments within the anticipated performance, including key balance sheet actions supportive of lending needs, covenant compliance calculations and Owner financial constraints
  • Whitehall assisted in developing a refinancing package that focused on providing the Company with the appropriate level of credit availability to support the ongoing operations of the business that were affordable
RESULTS
  • Restructured existing bank debt and payoff of loan
  • Assisted in profitable sale/lease back of existing facility and bank pay down
  • Assisted in the valuation, negotiation and eventual buyout of 50% owner partner
  • Right sized the business to achieve profitability and positioned for future growth

Contract Manufacturer of Machine Parts Needing to Evaluate Business Viability

DESCRIPTION

  • Whitehall Group provided professional services in connection with assisting the Company in the evaluation and planning surrounding potential courses of action with respect to the future direction of the Company.
  • Whitehall primarily focused on the business viability and current lender relationships with banking relationships regarding current and future issues
APPROACH
    High Level Business Review was conducted with consideration to:

     

  • Historical and trend analysis of trailing monthly, year-end financial comparison to current period(s) performance
  • Market and customer positions including evaluation of future potential business opportunities were evaluated
  • Evaluated current organizational and operational structure, inclusive of personnel and equipment, and including internal plans for reorganization and process improvement
  • Strategic review of Seller Note with bank of current status and potential modifications, supportive of business continuation or other courses of action or direction that may be required to provide proper level of financing needed
  • Develop creditor strategies and resource plan in response to anticipated or potential business and cash flow constraints with consideration of potential restructuring of debt with Seller, Trade Creditors, Bank and Others
RESULTS
  • Stabilized business with customers/suppliers/lenders
  • A daily war room approach became the focal point for performance in Quality, Finance, Manufacturing and Quoting
  • The existing filter was revised and was used each day at the quote meeting to maximize effort and success rate
  • Some completed order were analyzed to see if they met cost/selling price a framework for the daily production meeting was provided
  • Training matrix was utilized to cross train employees to maximize time utilization and equipment uptime
  • QC Lab report was revised to reflect both inbound time and outbound time to understand impact on down time at the machine level and understand what could be done off line or on weekends to increase machine uptimes

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michigan
PENNSYLVANIA

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