The Company manufactures and distributes outdoor power equipment and related parts and supplies through a dealer and distributor network, as well as directly to large retail customers.

The Company incurred net losses for three years while continuing to increase sales and dealer locations throughout the US.

The growth generated increased inventories which, combined with losses, resulted in significant increases in the Company’s borrowings from its multi-bank lending group.

FDP worked closely with management to develop a detailed, comprehensive business plan that was strategic, tactical and financial.

The business plan was used not only as an action plan within the Company, but also to tell the Company’s story during refinancing efforts.

While management had already begun lean manufacturing and cost containment efforts, additional expense reductions were implemented which focused on inefficient spending in parts purchasing, and other operating expenses.

Fort Dearborn also assisted management with the evaluation of facility consolidation, preparation of a formal competitive analysis, and profitability by Channel and Customer.

Interaction between Fort Dearborn and management fostered improved financial discipline and accountability within this large family-owned business, particularly in the areas of market direction, product introduction and working capital investment and management.

Planning discussions highlighted the need for management changes, driving senior management to make difficult personnel decisions.

Based on a solid story and enhanced performance, debt was successfully restructured to meet the current and long-term needs of the Company.  Interest from several lenders resulted in multiple proposals and competitive pricing.

The Company successfully refinanced its credit facility, gained access to additional capital, and the lead lender remained as the lead financing source for the Company’s new credit facility.