Financial Advisor to Plastic Injection Molder Which Resulted in Further Equity Support After a Change in Management
The Inglewood professional was hired by the board of directors to perform a viability assessment. Inglewood confirmed that the company was facing an imminent cash crisis caused by capital equipment requirements required for a large replacement job for their largest customer. Inglewood also identified a critical management conflict between the CEO and the COO which was causing the COO to deliberately manage the business into crisis to facilitate a bank restructure and equity buyout at below market price. Inglewood recommended plant consolidation of three plants into two based on customer margin rationalization and optimal machinery utilization and enhanced throughput (focus on longer running jobs to match production to commodity pricing model). As a result of our analysis, the equity investor exited the COO, invested funds to meet the cash crisis and the plant consolidation strategy was implemented.