Company Overview
The Company is a $200 million distributor of motor fuels that experienced operating losses and a loss of borrowing base availability due to declining wholesale fuel prices.
Engagement Overview
Fort Dearborn improved profitability by:
–Completing divisional profitability analyses that drove recommended price increases;
–Recommended other margin improvements and expense reductions; and
–Implemented a billing review process to correct billing errors and improve margins.
Prepared the monthly financial forecast, weekly cash flow and borrowing base forecast, factoring in the strategic and tactical operating plans and unusual working capital needs, which were unique to the industry.
Negotiated an over-advance with the senior lender while executing the turnaround plan and refinancing.
Recommended seeking, and assisted management in obtaining, long-term mortgage debt financing of real estate to improve capital structure.
Results
The Company improved profitability and working capital, eventually reducing the working capital loan to zero.
Fort Dearborn assisted the client in obtaining long-term mortgage financing on owned real estate.