Maines Paper & Food Service

Summary

Financial Advisor

Conklin, NY

Maines Paper & Food Service was a regional food distribution company serving restaurant chains and independent grocers. Tight margins combined with transportation challenges resulted in tight liquidity. The Company engaged an Investment Banking Group to commence a sale process. The lending group was concerned with the process and valuation and wanted an independent representative.

Despite significant operational initiatives, the Company was experiencing depressed cash flow related to competition, tightening margins and transportation and logistical issues. The company commenced a sale process with limited interest.

Key Challenges

Tight Margins

Challenging Labor Market

Lack of Liquidity

Challenged Sale Process

Engagement Highlights

Reviewed revenue and expense projections. Analyzed cash flow and ultimately cash requirements to bridge to a sale.
Attended negotiation discussions with large restaurant chain ownership on cash infusion and price increases. Worked with company on improving pricing from a per pick pricing to a cost plus model.
Worked with company analyzing weekly results and cash requirements. Reviewed Borrowing Base for reasonableness.
Worked with Investment Banking Group on sale process. Attended negotiations with potential buyers and provided insight to bank group.
Worked closely with the Company and Lenders to implement a strategy that stabilized the operations.
Created liquidation analysis and worked with company and professionals on reviewing the potential value in numerous exit scenarios.
Acted as a conduit between management/ownership concerns and the bank group.
Company ultimately sold to reorganized.

Maines Paper & Food Service

Summary

Financial Advisor

Key Challenges

Engagement Highlights

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