LBO of a $60+ million food and industrial packaging business with unique patented plastic recycling technology
We analyzed the company’s financial statements, operations, and the market to build an integrated financial and operational model for the company identifying gross margin savings of at least $18 million over 5 years. Model included sensitivity to oil prices, use of various raw materials, plant capacity, variable labor and freight costs, equipment productivity and upgrades, and several plant expansion scenarios. The analysis was accompanied by an in-depth study of the plastics supply chain, recycling trends and technologies, and profiling of all relevant competitors that resulted in creating a detailed 5 year post-closing business expansion plan. Our materials were used to raise senior debt, mezzanine, and equity capital for the transaction.