Phoenix provides Quality of Earnings review and business plan validation to the lender of a clad metal producer. Upon Phoenix’s report, the acquisition was successfully conducted.
Evaluated the following two companies for an acquisition transaction on behalf of the senior lender. Company #1 was the largest producer of clad metals in North America. The Company develops, manufactures, and markets specialty clad material, thermostatic bi-metal, and electrical contacts that are used in devices such as motor protectors, thermostats, appliances, and cookware. Some of its specialty-clad materials are also used in the auto and truck industry, telecommunications, and architectural industries. Company #2 was a nickel alloy specialty product manufacturer engaged in the business of metal cladding, cold rolling, stripping, and stamping of nickel alloys and metal strips. The client’s products were sold to customers in the electrical safety, electronics, automotive, and aerospace industries. Primarily, these metals are used in the production of circuit breakers, but also include measuring and control instruments, as well as, temperature control switches and valves.
The senior lender was evaluating the prospects of providing a $40 million credit facility to one of its current borrowers. Phoenix was engaged by the lender to conduct a business review of the financial forecast and business plans of the lender’s current borrower as it considered the acquisition of its next largest competitor.
Phoenix conducted a Quality of Earnings review and business assessment of the Companies and proposed transaction including but not limited to the following items:
Upon presentation of Phoenix’s analysis and report, the acquisition was successfully conducted with full support of the senior lender including the securing of a new $40 million credit facility.
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