HiTouch Business Services

Summary

Financial Advisor

Nashville, TN

HiTouch Business Services is a family-owned, national provider of office supplies and services, including cloud storage, reusable moving crates, facilities management, contract furniture, printer maintenance, and office products distribution. HiTouch maintains distribution facilities in 22 states and operates nine distinct brands.

CMA was retained by HiTouch as financial advisor to provide a comprehensive business assessment of the company as required by its lender in order to identify potential strategic restructuring options, profitability enhancements, and high priority issues facing the company. CMA made recommendations intended to improve the Company’s business efficiency, infrastructure, and overall profitability, as well as address organizational issues as they related to the execution of the Company’s turnaround plan.

Key Challenges

Supply Chain Inefficiency

Liquidity & Working Capital Shortage

Warehousing & Logistics

Leveraged Capital Structure

Engagement Highlights

Initial Assessment and Review of Strategic Alternatives
- Reviewed in detail various key aspects of HiTouch’s business, including its cost structure, significant spending items, customer concentration and profitability, inventory production, logistics, and working capital efficiency.
- Assessed working capital and liquidity needs on a rolling 13-week basis.
- Completed thorough review of HiTouch’s historical and projected financial performance, helped negotiate past due vendor payments, and communicated the go-forward plan to the owner and lender group.
Interim Management
- Implemented recommendations, including logistics and warehouse initiatives, and served as Interim CFO during financial turbulence when the Company required $20M in liquidity to execute its turnaround plan. Provided DIP and bankruptcy strategy support to the Company as it contemplated alternatives while awaiting emergency liquidity from potential investors.
- CMA assisted the Company in working with its ABL lenders (JP Morgan Chase) to increase availability under its Credit Agreement and worked with ownership and 2L (ArrowMark Partners) to negotiate additional capital investments, resulting in a successful turnaround and sale of the Company – at a significant premium – to NASDAQ-listed Staples Inc.

HiTouch Business Services

Summary

Financial Advisor

Key Challenges

Engagement Highlights

Sign Up for Our Newsletter