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Industry Expertise > Food & Beverage
FOOD AND BEVERAGE EXPERTISE
Keystone focuses on results, and we are proud of the impact we have on our clients. Learn more about some of our client successes below.
Client Success: 363 Sale – Preserving a Venerable Brand Name
This 80-year old company was a leading $150 million manufacturer, marketer and distributor of salty snack foods. The Company began to have serious shortfalls due to a combination of losing high-margin customers, terminating low-margin customers, and an inability to secure national accounts. This sales pressure was coupled with drastically increasing commodity and distribution costs. The Company was quickly suffering significant losses and poor liquidity.
The Company determined that its debt structure was too high and the business model was no longer profitable – a sale or liquidation of the Company’s assets, via bankruptcy, were the only alternatives. READ MORE...
Client Success: Turnaround Plan Validation & Cash Management
The Company is a sheller and value-added processor of pecans. After a series of poor management decisions, missed plans, and broken financial covenants, the bank no longer trusted management to present reliable financial projections.
The Keystone Group was engaged by the bank to help assess the financial viability of the Company and to understand the Company’s short term cash needs. There also existed a number of other complexities within the business such as: a highly seasonal business where 90% of the raw materials were purchased within a three-month timeframe; a private equity owner who had recently inserted a co-CEO; an executive management team who participated in off-balance sheet transactions to assist in the purchasing of raw materials during harvesting season; and a mezzanine lender who helped to “prop up” the inventory advance rates to more than 100% during the buying season. READ MORE...
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