Company Overview
This Motorsports Entertainment Company primarily operated a speedway and a car racing series.
The conglomerate also operated a food ingredient processor and a TV sports production company.
Engagement Overview
The Company had been generating losses for numerous years with those losses being funded by the sale of operating assets and additional borrowings.
The Company had over $100 million in senior debt and was below 1.0x Debt Service Coverage.
The CEO had recently resigned, resulting in turnover within the Company, and tension amongst the family board members.
Fort Dearborn provided strategic direction to the new CEO and a plan to bring the Company to profitability within three years.
Fort Dearborn assisted in de-leveraging the Company’s balance sheet by $75 million and negotiated a new working capital line of credit with the Company’s lender.
Fort Dearborn facilitated the transition of the Board of Directors from family members to non-family professionals.
Results
Fort Dearborn assisted the Company in developing a multi-year strategic plan providing a pathway to profitability.
Fort Dearborn recommended a significant reduction in force, reduction in operating expenses, and a reorganization of senior management.
Over a three-year period, the Company improved EBITDA by over $30 million.