Interim Operations Management for Plating Company Serving the Automotive Industry
Inglewood was engaged effectively as a non-court appointed receiver to run the day-to-day operations, accounting and administration of this $15 million company that had a significant negative weekly cash flow. When Inglewood was initially engaged, the workout officer believed that the company was days away from a liquidation which would have resulted in a large loss to the bank. The Inglewood team, acting as interim CEO and CFO, right-sized the cost structure of the business so that it was operating cash flow neutral, identified and sold selected assets, and ultimately assisted the company in paying off its bank debt in full. This eliminated the owners' potential obligations to the bank under their personal guarantees. Assets that were sold included the company's Texas Division (see below), term and whole life insurance policies, underutilized equipment, among others. While making significant reductions in the company's cost structure, Inglewood simultaneously assisted the company in dramatically improving its product quality such that several customers who had resourced production due to quality related issues, started returning and asking for additional quotes from the company.
Sale of Texas Division - As part of the engagement as financial advisor for the plating company above, Inglewood was engaged to sell the company's Texas Division. This was a challenging sell side engagement in a challenged industry in a very difficult marketplace. In addition, the company had historically not properly segmented the Division's balance sheet, making it difficult for a buyer to understand the historic cash flow of the division. Finally, management was operating the company on an absentee basis, again making it difficult for buyers to forecast operations under a changed management team. Inglewood identified potential buyers for the Division, negotiated the transaction, oversaw the transaction document process, managed the electronic data room and due diligence processes and dealt with a variety of deal issues that arose through the closing of the transaction.