Advisory services appointed by a major financier to assist with a facility renewal of a renowned apparel business.
We were appointed by a major financier to assist with the facility renewal of a large domestic and international apparel business. The business had an annual turnover over c$100m and secured facilities of $37m that were shortly due to be renewed, however, the business was starting to display several early warning signs.
Our challenge was to perform an analysis of the company’s operational and financial metrics and compare them to the newly proposed financial model. Our goal was to effectively negotiate the renewal of facilities to ensure the ongoing operation of the business.
The first stage focused on an extensive analysis of industry, risk, market and operations, and financial parameters, together with a review of board/management effectiveness. This also involved attendance at head office to review financial information and meet with key internal stakeholders. A detailed report was prepared for the major financier summarising the findings provided several key areas for improvement (including supply management, marketing, governance and pricing).
The second stage involved reviewing the key identified elements against a restructured financial model developed by the business. This meant engaging with the various stakeholders (debt and equity) to evaluate the business’s capacity to achieve its financial forecasts including. This encompassed aspects such as operational performance and debt reduction.
As a result of our recommendations, the major primary financier and business achieved a successful renegotiation of the facilities, enabling the business to continue trading.