Case Study #7

Company Profile

Company manufactures corrugated and packaging materials.

Sherwood Mandate

Assist in the development of a revised business plan, with the goal of submitting the plan to prospective lenders.
Identify prospective lenders and assist in negotiations.

Financial Situation

Company’s sales were decreasing, with yearly revenues equal to $30 million.
Company had experienced operating losses for the past two years.
Significant capital expenditures would be necessary in order to upgrade product lines.
The industry was consolidating, with a significant emphasis on stealing market share through price.
The current lender wanted to terminate its relationship with the Company.

Results

Sherwood negotiated a $6.5 million “working capital” credit line, which was more flexible and responsive in allowing the Company to address market challenges. Sherwood accommodated the facility within 60 days of its engagement.
Sherwood consolidated the Company’s equipment debt into a term loan, lowering the effective interest rate and reducing monthly payments.

Contact

Sherwood Partners, Inc.

Silicon Valley | Los Angeles | New York

3945 Freedom Circle
Suite 560
Santa Clara, CA 95054

Phone: 650-454-8001
Fax: 650-454-8040

info@shrwood.com

 

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